Take three steps to refresh & reposition your loyalty program for the new reality

We all know we are in a new reality.  At a micro-level, its impact is different for every human.  At a macro-level, it’s the same for all of us. It is new and it is real.

Given we are starting to accept this, take three steps to refresh and reposition your loyalty program for the new reality.

Step 1: Assess to validate
Take the pulse of your program to validate its current state

Step 2: Adapt to reposition
Refresh and re-calibrate for the new reality

Step 3: Activate to stimulate
Activate to stimulate the relevant response

Here’s a little more detail on each:

Step 1: Assess to validate
Take the pulse of your program to validate its current state

  • Confirm leadership commitment to the future: Are the leaders still committed to the program as an asset to the business?
  • Analyse member behavior and belief:
    • Behavior: assess data for changes in purchase behavior and program interaction vs past periods by inputs such as (not limited to) demography, geography and value segment.
    • Belief: research with members their changes in attitude at a:
      • human level (concerns, pains, needs, desires; new way of living life);
      • behavioural level (predicted purchase behavior and current feeling of ‘loyalty’);
      • program level (desire/needs and appeal of current and refreshed* program proposition, structure, benefits, communications and experience).
  • Team belief and buy-in: assess the sentiment of your team’s belief and buy-in to the program – current and refreshed*.
  • Data audit: conduct a data hygiene gap analysis for actions to update
  • Technology audit: evaluate your technology infrastructure - is it functionally fit for now and the future.
  • Metrics review and reset: Once the above is complete, evaluate key measures of success (present vs past) and set new objectives for the program.

* NOTE: Once Step 2 is complete, the refreshed and repositioned program should also be validated with members and team).

Step 2: Adapt to reposition
Refresh and re-calibrate for the new reality

With assessment and validation complete and new metrics set,take the step to adapt the program to refresh and reposition it for the new reality:

  • Proposition: is the program promise still relevant?
  • Structure and benefits: review the program structure (tiering if relevant) and evaluate the blend of benefits to meet your members’ new way of living life (transactional to emotional).
  • Experience: With little or no physical store interaction, is there any adaptation needed for online, mobile or call centre interaction?
  • Communications: Review all communications by type (marketing, mandatory, triggered) as well as tone of voice and frequency.
  • Channels: Are all channels being optimized for member engagement? Perhaps now’s the time to invest in personalised direct mail - an analogue channel which will cut through the digital downpour (test and learn)!
  • Financial model: Based on the refreshed program, evaluate your financial model to ensure long-term viability.

Note: there are many ideas relating to the above in the ‘119 customer loyalty ideas to beat COVID-19’, which is free to download.

Step 3: Activate to stimulate
Activate to stimulate the relevant response

Steps 1 and 2 are strategy and structure respectively and step 3 is all about activation – making it happen.

Launch the repositioned program to your members and your team.

Thinking about your team, they are critical to the success of the refreshed and repositioned program.

Ensure they are enrolled in the program, educated, excited and know what is expected of them. Appoint loyalty champions.

A final note

All three steps are dependent on each other.

Assess + Adapt with NO Activate = no-one knows

Adapt + Activate with NO Assess = no direction

Assess + Activate with NO Adapt = not relevant

So, what’s the next step?

The next step is to take three steps to refresh & re-position your

loyalty program for a new reality.

If you would like to discuss these three steps in more detail, please be in touch (adam@thepointofloyalty.com.au).

Have a happy loyalty day!

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  1. […] (This article is a follow up and a slight refresh to this one I posted on April 17th) […]

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