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The importance of creating a loyalty program that is tailor-made; An unconventional approach proposed by Spartavity


When it comes to creating and implementing a loyalty program a one size-fits all policy doesn’t apply. Upon creating a program that represents your business, particularly when you are trying to appease your existing customers and searching for new ones – a personal touch is always advised. The benefits of this are that you can target your customer base in more direct ways and tend to their needs. You can achieve this by creating redeemable point programs, establishing lines of communication and tailor specific offers to achieve a constant flow of customer repurchase.

Loyalty programs are based on the principle of creating a reward mechanism which allows you to build a real relationship with your customer base. Effective loyalty programs are based on strong foundations such as this.

You can certainly identify several recurring scenarios in various types of solutions that are currently available in the market’s zeitgeist. These include; receiving specific benefits for points, free services or products for loyal customers, a higher discount as a reward for brand loyalty. With this knowledge does this mean that the implementation of the loyalty program should be approached schematically? 
In our opinion, we have a different approach as we believe that tailor-made solutions are the most valuable.

Each group of customers are different as is the businesses they engage in

When it comes to brands, mere affiliation is not the only feature that makes the customers of specific products or services different. If you consider three brands operating in the same industry, each will be unique in their own way as they appeal to a specific audience. The differences to consider are that at the level of the product offered, the selected design or the experience it offers to its customers. You will notice this by analyzing your customers’ role in the product or service provided and how the product is communicated to them. Considering this, would the implementation of an identical loyalty program be justified? Obviously no, for the reasons mentioned just previously.

Each company has such different possibilities and qualities that create their brand identity.  When preparing your program, you declare, among other things, the level of rewards and the type of customer you wish to attract. Not every brand will be satisfied using a points based program, or one that can offer equally attractive rewards or bonuses. The most important thing to keep in mind is that not everyone has the same goals – only you know what the business plan (KPI structure, P&L etc) is for your company. You could also be in a scenario whereby you have a loyal customer base but you require the necessary program to engage them more – furthering your reach so to speak. 

The fundamental questions are paramount

Asking the right questions is easier said than done but they need to be asked regardless. Maybe you are just starting out and are required to build a program from the ground up. First of all you need to assess what are the possibilities of your business when it comes to implementing a loyalty program. An individual customer approach would be also important in this sort of scenario. Some solutions that are perfect for giant companies, not necessarily for medium-sized ones. Sometimes a smaller business can afford carrying out a loyalty program and implementing it, which in the case of a large organization it wouldn’t work. All doubts should be dispelled at the consulting stage – this is where we start working with our clients.

Tailor-made solutions in loyalty programs 

Working on a program means working on establishing a mechanism that will allow you to achieve your business goals, considering specific rewards and opportunities for your customer base. An example is the implementation made by us for the BRIJU – a jewelry brand – which wanted to find out about  the honest opinions of its customers via direct feedback. Therefore, BRIJU stimulates customer reviews by implementing a reward mechanism by giving customers who review their products with additional points available in their loyalty program. 

Some businesses also require flexibility as some businesses require different solutions that are not in the realm of a points for purchase program. The possibility of acquiring products or services for a specific pool of points is a good alternative. The reason being is that for certain companies it allows their customer base to experience other product lines. We used a similar solution in The Body Shop – as customers have the opportunity to exchange the points they have gathered for discount coupons or cosmetics.

A loyalty program is more than just a customer rewarding mechanism or a tool to gather customer data. It is also an opportunity to communicate with your customer. Communication is paramount as it provides a way to get to know the group that uses your services better. Also in this aspect, it is very important that the individual needs of your company are taken into account when implementing a loyalty program.

So as mentioned before a points based system can have two outcomes. Thanks to using this individual approach, you have the chance to use both options. 

Tailored analytics and communication – solutions offered by Spartavity

What specific examples are we talking about? Imagine you are running several points of sale. If you decide on a loyalty program and you care about analytics, you surely want to know how each of your customers uses the potential of the program? General data, while useful, will not tell you much about your local customer group. By gaining the ability to assign specific variables to defined places, you get answers to several important questions;
– Where are the most active participants?
– At what point do they make the most transactions? 
These are the two main questions that will allow you to begin to develop your program.

Perhaps, however, the communication aspect is crucial for you. Here, too, it is important to respond to the needs of your company. First of all, data on communication effectiveness can be useful for you. Do recipients readily reach for your emails? Or maybe they don’t open them at all? Are there groups of customers who react willingly or less enthusiastically to offers addressed to them? These are just some other types of questions you need to consider.

A few steps to a tailor-made program

To create a good loyalty program, you have to go through a few steps. The first one is definitely the definition of your KPI, describing the individual situation, needs and possibilities. By choosing the help of our experts, you can be sure of objectivity and reliable assessment.

The second step is to check the potential possibilities and select a mechanism that will allow you to achieve the assumed goals.That being whether you want a points or discounts scheme, with prizes or maybe with a discount? You will learn about all the available options, as well as the possibilities of combining certain solutions dedicated to clients.

The third step is to adapt and be aware of the additional possibilities that your program could include. These being communication and analytical tools that can be implemented to better assist you in reaching your customer base as well as understanding them. 

The fourth step is the continuous development of your program during its duration. Thanks to the individual approach to implementation, you gain the ability to adapt it to your current situation and business needs. You get the opportunity to evolve and remain dynamic – changing whenever you need it.

Are you planning to implement your own program? If you want tailor-made solutions, please contact us. Together, we will create a solution fully tailored to the needs of your business.

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