Loyalty Programs in 2024. To infinity. And beyond…

Thanks to Toy Story

Woody argues Buzz's ability to fly. Buzz has faith and proves he can.

A classic story with many insights.

Infinity[1] … the concept of something that is unlimited, endless, without bound.

… ‘And beyond’…

is there such a concept as ‘beyond infinity’?

Arguably NO, however extending infinity is more of a mindset than a reality.

Loyalty programs in 2024. To infinity. And beyond...

Bringing the context of loyalty programs into the mindset of ‘Infinity and beyond’ is where I believe (and with bias) loyalty programs can and must evolve.

Change is definite. The world, your business, your program’s members.

An infinite mindset of evolving your loyalty program is what will keep it vital and relevant.

The Seven Zones of Loyalty Program Performance

While ‘infinity and beyond’ as the mindset has no form or function, here is our proven strategic framework to keep your loyalty program on the trajectory you choose.

  1. Business
  2. Customers ('Members' if an existing program)
  3. Program
  4. Profitability
  5. Technology and data
  6. Dialogue
  7. Team

This is not a prioritisation as each evolves to support the next.

Seven key questions (with a few extra’s) to ask each of the Seven Zones and a few recommendations - What Would Woody do?

Zone 1: Business

Why a loyalty program?

  • What problems can your program solve for your business, your customers, and the world around us?

Recommendation – What Would Woody do?
Be clear on the metrics that matter. Remember the three B’s to influence = behaviour, belief and belonging

Zone 2: Customers

Who is the program for? All customers are equal except some are more equal than others.

  • Why will they care to join and engage?

Recommendation – What Would Woody do?
Start with value segmentation (past vs predictive) = the money-factor, advance to emotional segmentation = the care-factor.

Zone 3: Program

Is program proposition meaningful and desirable?

Recommendation – What Would Woody do?  
More Joyalty* please (DM adam@thepointofloyalty.com.au if you want the purple paper on Joyalty* Programs).

Zone 4: Profitability

Is program playing its part to deliver a net incremental profit?

  • Does your program have a P&L, Cashflow and Balance Sheet?

Recommendation – What Would Woody do?
Review your loyalty program financials with a dynamic financial model showing the impact of variables such as cost of rewards, new rewards and benefits and increasing member activity (amongst others).

Zone 5: Technology and data

  • Is the technology enabling the program and the data gathered fit-for-purpose (serving your program now) vs fit-for-future (serving your program’s ambitions)?

Recommendation – What Would Woody do?
Review your loyalty program technology infrastructure to answer the above key question.

Zone 6: Dialogue

  • Is the communication framework (marketing, mandatory and triggered) dynamic and personalised?

Recommendation – What Would Woody do?  
Review your loyalty program communication based on three areas of member relevance - 1) expected and useful 2) unexpected and useful 3) unexpected and creepy

Zone 7: Team

  • Do the wider team internal and customer facing believe and buy-in to the program?

Recommendation – What Would Woody do?
Implement a formal loyalty champions program.

The MIQ (most important question)

Do you believe your program can fly. To infinity. And beyond?

Consider these questions and the What Would Woody do? recommendations as you evolve your loyalty program in 2024 to infinity and beyond.

Have a happy loyalty 2024!

[1] https://www.britannica.com/science/infinity-mathematics