Simple answers to fix retail’s loyalty marketing mess
Through a special arrangement, presented here for discussion is a summary of a current article from The Wise Marketer, a website and newsletter serving the global loyalty industry.
As I continue to observe loyalty programs across multiple sectors, time and again I see failures that can readily be solved.
Out-of-control deal loyalty: Too often we see retailers giving away discounts, dollar savings the same week or over the same timeframe that loyalty points or program currency are offered. Use your value proposition wisely. Work ahead and more effectively with your merchant planning and analysis team for well-coordinated promotional planning.
Can’t find the loyalty program: Where is it? In the footer of your website? Seriously? Fight back with the e-commerce team and get your program some prominent real estate.
Advertised it, but forgot to support it: A loyalty agency builds a program, informs and integrates it at the floor level, yet nothing is found on the brand website, nor the mobile app.
Stop harassing me: Before launching a loyalty program, a planning process is needed to figure out the sequencing of e-mail communications — member vs. non-member, transactional thank you’s, welcome messages, and promotional and partner messaging. An ESP (email service provider) can act as “traffic cop” so that the e-commerce business doesn’t double up on store marketing’s efforts in any given week. For brands with multiple entities, a member might receive 10 or more e-mails in a given week.
Where is the insight?: The number one complaint from members? You know me and you aren’t showing me that. Start digging into the data from square one. Refresh the look/feel of your creative to match what you know or believe you know about your program members.
Innovation, what’s that? For a loyalty program to survive, it is essential to innovate. Explore new partnerships. Try different tactics.
Financial modeling: Wow, you say I forgot all about that tricky model we built to justify the program business case? It all starts with accountability.
DISCUSSION QUESTIONS: What do see as some common shortcomings in the execution of loyalty programs? Would you add any to those cited in the article?