How Effective is Your loyalty Programme/

1. Six Tips to Enhance Your Loyalty Programmes
Are your loyalty programmes giving you headaches? Do you have difficulties in
measuring the impact of loyalty programmes? Or do you feel your loyalty programmes
require strong differentiation?
Well, there are no straight answers to above questions however you could study the
following tips to enhance your loyalty programme:
1) Vary reward redemption levels: Does your loyalty programme have fixed redemption
levels? If so then it is time to introduce concept of varying redemption level. It gives you the
flexibility to change the reward levels to suit customer’s changing spend pattern. This subtly
encourages your customer to keep an active interest in the programme.
2) Build dialogue not monologue: Does your communication plan involve one-way
communications? If so, then it is time to re-visit your use of customer information. Are you
using the valuable information provided by customers to personalize reward offering?
Dialogue indicates long-term relationship building strategy rather than short-term
promotional tool.
3) Build and rotate programme benefits: Do you refresh your loyalty programme benefits
at least every six months? If not then it is time to take a second look at your strategy. It is
useful to build a bank of benefits and then rotate them. In this way members will feel there is
always something new happening and at the same time it encourages new memberships.
4) Generosity: A cursory look at various loyalty programmes tells you one story –
stinginess. Most of the programmes don’t offer more than 2% of spend value in rewards. But
successful loyalty programmes offer more than 4% in reward returns. After all you are
capturing life time loyalty of the customer.
5) Differentiation: How different is your loyalty programme as compared to your
competitor’s? The more differentiating points you have so much easier it would be driving
the same. Clear differentiation in benefits delivery would enable potential members choose
your programme over others.
6) Targeted acquisition: Do you recruit at mass levels or do you focus your membership
recruitment to particular target groups? By making targeted acquisitions you will have higher
participation levels amongst programme members. Quality is any day better than quantity.
I am sure if you implement the above tips you will be able to refresh your loyalty programme
and ultimately increase its effectiveness.

2. This article was contributed by Rajeev Ramachandran, Managing Consultant, Loyalty
Matrix. He can be contacted at rajeev@loyalty-matrix.com
About Loyalty Matrix: Loyalty Matrix is a Kuala Lumpur based consulting firm
specializing in strategic loyalty marketing activities. Working across different industry
verticals Loyalty Matrix aims to build better loyalty programmes. Loyalty Matrix creates
value for corporations by increasing efficiency of loyalty programmes and by providing
strategic insights. Operating in the Asia-Pacific region its international client list includes
telecommunications, hospitality, media, consumer products, petroleum and retail sectors.
Learn more by visiting www.loyalty-matrix.com
Disclosure: Loyalty Matrix makes every effort to ensure the quality of information available
in this article. Before relying on the information, readers should obtain professional advice
relevant to their particular circumstances. Loyalty Matrix cannot guarantee, and assumes no
legal liability or responsibility for accuracy, currency or completeness of the information.