How to plan a loyalty program?
Understand the importance of designing a loyalty program to ensure success, engagement and good results
Loyalty programs are a set of strategies that a company adopts with the main objective of rewarding and encouraging customers, developing a relationship of loyalty so that they continue to consume its product or service.
For a loyalty program to generate positive results for both customers and the company, it needs to be properly planned .
Here at Indico, we have developed our own planning methodology that has already been applied to projects for major clients.
And in today's article, we'll explain the first stage of this methodology: the study of the loyalty program.
How to study a loyalty program
The study stage, the first in the loyalty planning process, works through two complementary lenses: diagnosis and context.
Diagnosis seeks to understand everything the brand has been doing and has already built. And the context looks outside the company for trends and inspirations.
Together, these two perspectives provide a 360° view of the business operation and the market scenario. This allows a true immersion in the company's universe, making it possible to identify opportunities, threats, and strengths and weaknesses to be considered in the loyalty program.
Shall we understand how each one works?
Diagnosis
At this stage, it is important to identify whether the company already has a loyalty program or similar initiative and, if so, map out its attributes, mechanics and experiences.
In addition, interviews with company teams provide enriching information about the program to be developed. Among other things, remember to ask about:
- Company structure
- Products and services
- Brand positioning
- Customer relations
- Competitors
- Communication
- Finance
Don't forget to also listen to the voice of the customer and understand their perception of the company. This can be done through customer service materials shared by the company itself, company review sites, app stores, satisfaction surveys and social networks.
Context
Here, the focus is on understanding the market in which the program will be inserted so that an extremely assertive approach can be adopted during its development.
To do this, it is essential to gather data and information such as:
- Sector trends
- Market projections
- Consumer trends
- Technology trends
- Government regulations and policies
In addition, benchmark your competitors, especially if they have loyalty programs or similar initiatives. Analyze the mechanics used, experiences offered, benefits provided, marketing and communication strategies and customer feedback .
Objectives
Now, with an in-depth understanding of the company's universe, considering its internal characteristics and external conditions, we come to the definition of objectives .
These objectives will be the compass for loyalty planning, making it possible to detail all the topics included in the next stage, where the program is actually designed.
Therefore, analyze the insights obtained carefully, gather all the necessary stakeholders and define objectives that are really aligned with what the company wants and needs:
- Increase the customer base?
- Increase revenue?
- Improving engagement?
- Collect more customer data?
- Generate market differentiation?
- Boosting digital initiatives?
About Indico
We create and manage loyalty programs that connect brands and customers, generating the engagement needed to develop your business.
Count on the expertise of +100 loyalty programs developed and implemented. Contact us us and turn your customers into fans!
