Maximizing Your Customer Loyalty Program
Are Your Loyalty Programs Getting the Job Done?
Typical Client Concerns:
Is the customer really getting value?
- The lack of real value can be a key barrier to the success.
- Earning versus burning – "what is the point in earning a currency that you cannot spend?"
Ipsos' global research indicates that customer satisfaction with rewards programs is relatively low.
What is the company getting?
- Merely giving stuff away for free?
- Are you merely encouraging deal seeking behaviors?
What is the efficacy?
- Are you truly enhancing loyalty or merely buying it for the short term?
- Does the program drive incremental customer spend?
- Does the program truly engage the customer?
- Is the program differentiated from competitors' offerings?
Our Philosophy is that...
- Loyalty programs should be designed so that strategies for acquisition and retention work together.
- Loyalty programs are an opportunity to remove barriers to loyalty and then to build positive customer experiences.
- Loyalty programs should be an inherent part of the customer experience and should build both emotional and rational elements of the relationship.
- Loyalty programs must align brand and company strategy – successful programs are part of a company-wide customer-facing agenda, not just a set of financial give-aways.
- Loyalty programs must optimize the exchange of value between a company and each customer, either at an individual level or through segmentation, profiling and targeting.
"We have created the Rewards Optimizer research solution to help our clients develop relevant and impactful customer loyalty programs."
Our approach results in program designs that are:
- Better revenue generators
- The most relevant to your customers
- Likely to build and strengthen customer relationships
Find the Power in our Two Pronged Approach!
Qualitative work to establish the proper elements for an "ideal" rewards program. Key areas of enquiry are:
- How is the category and brand viewed in terms of potential for building "loyal customer relationships" via a rewards program?
- What behaviors would customers exhibit as a response to this program?
- What potential uplift or change in attitudes and behaviors could there be?
- What types of loyalty initiatives would make a difference?
Which are credible?
- How would this fit with the brand agenda?
- What is the best way to frame the program elements and communicate them to the consumer?
Typically executed as two, 2-hour focus groups in a city of your choice (based upon clients needs).
Key Deliverable: Summary report of findings that provides direction on the relative attractiveness of program elements with recommended refinements.
Online 15-minute survey conducted among 1,000 consumers nationally.
Consumers are briefly profiled for category level attitudes and rewards related behaviors, as well as key demographics.
Choice exercise presents consumers with several sets of program configurations for review. From each set, the consumer is asked to pick the configuration deemed most attractive.
Consumer choice modelling is used to prioritize program elements and identify the optimal configuration. This is the configuration that will generate the best level of relative consumer demand from amongst the numerous configurations that are possible.
Key Deliverable: Summary report that identifies the most attractive program elements and the "optimal" offer.
Key Deliverable: Simulator that permits you to configure your own rewards program and provides an estimate of consumer demand.
We provide Key Outputs that you can really use!
Optimizing the Offer
Which particular features of the program are driving interest?
What are my options?
Using our simulator you can build your own configuration and forecast relative demand levels.