January 26, 2012
Everyone is trying to build a better Loyalty Program that will hold customers forever.
Here are some thoughts to consider (in no particular order)...
1. A Loyalty Program should be RELEVANT (something your Fans Care about) and UNIQUE (something they can ONLY get from you).
2. Identify your Fans and go get from them the Top 3 things they care about.
3. Design the Plan around these 3 things.
4. Observe what the competition is doing, but act on what your Fans are telling you. Many organizations design something on the basis of what their competition is doing. WRONG!
5. Consider building an ONLY Statement for the Loyalty Plan. “Roy’s Fan Club the ONLY one that….” Is how you could actually build it.
6. Avoid Benchmarking other Plans unless you want to exercise the Contrarian Marketing tool (go the opposite way). Copying Best of Breed might allow your status in The Herd to improve, but it won’t allow you to stand-out from The Herd. To BE DiFFERENT.
7. Consider greater benefits to those who have been with you the longest. Someone who has been with you for 10 years is worth more than someone who has been loyal for 2 years. Treat the 10 year old accordingly by delivering more benefits to them.
8. Design a communications strategy to support Roy’s Fan Club to be constantly engaging with your members. Keep the Club alive and constantly tweak it based on Fan Feedback.
9. TEST the Plan design with your Fans. Make sure it addresses their High priority wants and desires - the RELEVANCY Test.
10. Personalize the Fan Club. Have a variety of versions based on the unique desires of your various Fans. The One Size Fits All Approach is what The Herd does, and it produces Invisibility and Mediocrity.
11. Give Fan Club members a special “Fan Club Service Line” to call when they need to talk to you. Differentiated levels of service is an appropriate way to recognize the relative value of customer groups.