What tools do retailers need to build a winning loyalty program?

Through a special arrangement, what follows is a summary of an article from COLLOQUY, provider of loyalty marketing publishing, education and research since 1990.

Celebrating its 25th anniversary, COLLOQUY gathered a select group of loyalty leaders and visionaries and asked them to share their insights into the loyalty industry's evolution. One of the topics explored: "Building a loyalty starter kit. What three tools are essential?"

Here, a few of the responses:

Daniel Pink, author of five books, including "Drive":

1. A great product;
2. Transparent process and rules. If someone understands how it all works, [he is] far less likely to complain and much more likely to be satisfied.
3. Simplicity. Anything companies can do to save people even a step can pay big dividends down the road.

Don Peppers, customer relationship expert, author, founding partner of Peppers & Rogers Group:

1. The first tool is a mental model that loyalty is not the be-all, end-all goal of any loyalty program. You want customers to like you, to have an emotional commitment. Do not confuse a loyalty program with loyalty.
2. Adopt a business model that understands the more different your customers are in either their values or needs, the more useful the loyalty program is.
3. A program where I can redeem points for a variety of different things, maybe even with different companies. Why not let customers choose their rewards in advance and earn their points toward them? They'd get insight into what really rings my chimes.

Bryan Pearson, president and CEO of LoyaltyOne, author of "The Loyalty Leap":

Any tools that enable the company to use the data it collects to meet pre-established goals:

1. A platform to hear your customers in real time;
2. A system for sharing what you hear throughout the organization to reveal unexpected potentials;
3. The capacity to deliver on the initiative's promise.

Emily Collins, senior analyst focused on customer-loyalty programs, Forrester Research:

1. Define an enterprise-wide loyalty strategy that links to the larger business objectives and focuses on the total customer relationship.
2. Customer insights — great loyalty strategies create an exchange of value between the company and the customer.
3. Technology to bring your loyalty vision to life!

Seth Godin, author of several best-selling books, including "Linchpin" and "Purple Cow":

1. Build something I'd miss if you took it away.
2. Focus not on prizes or the transfer of value, but on recognition, on humanity; on people.
3. Care more.

• Colloquy July/August 2015 - COLLOQUY