The past two blogs have focused on rewards and loyalty. Loyalty being a very important outcome, and rewards one tool to help achieve that outcome. They’re both commonly associated with a ‘loyalty programme’. However, the term is more often a noun than it is a verb. Any business needs to be in the ‘doing’ mode when it comes to loyalty because customers are continually demonstrating their loyalty, or not.
So where’s the place for a ‘loyalty programme’. My last post talked about the use of rewards and loyalty, and the benefits of having a programme that was right for the business and the customer.
With the cloud and mobile technology there are some excellent options available for businesses of all sizes. NextBee and Fielo are two such programmes, and RewardJunkie one of the early adopters of iOS6’s Passbook, another. These loyalty programmes offer so much more flexibility and advantages for the business and customer than the more traditional programmes.
What’s needed though is a more holistic approach to rewards and loyalty. What’s needed is a ‘Customer programme’ – a programme driven by a strategy that focuses on the customer. A loyalty programme that uses rewards to enhance loyalty could be part of the Customer programme, but on its own it’s not broad or deep enough.
Here are some of the elements to consider including in your Customer programme:
- A CRM system to register customers
- Customer segmentation driven by the CRM, analytics and insight
- Customer research to inform and monitor the programme
- Customer experience programme with measures and monitoring
- Communications strategy including media monitoring
- Loyalty programme.
The elements listed above are interlinked and rely on the overall customer strategy being determined first. However, just like anything you don’t need to develop all these elements before you start your programme. You can add incrementally after establishing the strategy.
Go 2 Market principle: getting customer loyalty takes a lot of ‘doing’. Having a Loyalty programme can help with the doing if you pick the right one. But a multi faceted Customer programme is required to ensure lasting customer value.