4 steps to creating a customer-centric loyalty program

According to Bain & Company, in conjunction with Harvard Business School, a ‘5% increase in customer retention can increase a business’ profits by as much as 95%.’ By leveraging multiple channels and customer data within a scalable loyalty program framework, brands can build a personalized relationship with their most loyal customers which will increase retention. With customer engagement top of mind for marketers today, brands should create a customer-centric vision for their loyalty program.

Focus on these four key elements when developing your loyalty program:

1. Continually keep the overall customer experience top of mind

A loyalty program should engage and enhance the customer’s experience, add real value and provide personalized communications and offers.

2. Utilize a multichannel approach

Don’t limit the customer experience; consider communication opportunities across all marketing channels.

3. Capture loyalty touch points across the following communication types:

• Enrollment Communications: touch points that promote and propel joining the loyalty program
• Lifecycle Communications: touch points that address the loyalty program lifecycle – welcome, early activation and life events
• Base Promotional Communications: on-going loyalty promotional opportunities based on a promotional calendar
• Status Communications: touch points focused on loyalty member status
• Usage & Balance Communications: touch points that encompass loyalty reward usage and reminders
• Earnings & Redemptions: touch points that address loyalty reward earnings and redemptions

4. Highlight opportunities to leverage customer data

Plan to incorporate personalized and dynamic loyalty offers and touch points (even as a future consideration).

A thoughtful customer-centric vision, combined with actionable data, can provide insight into the opportunities and communications for launching or optimizing a brand’s loyalty program. This framework can be the cornerstone for implementation and planning efforts, to ensure your business builds a truly robust customer driven loyalty program.