Give yourself some aims and review them constantly

Now let's talk about other aspects that are central, other reflections that we need to make ... in addition to investments in loyalty programs, what must be the key metrics we need to measure to understand the effectiveness or otherwise of the loyalty policies, which we are going to put in the field with our customers.

So, another fundamental aspect is to understand what are the goals we are setting ourselves when we start a loyalty program for our customers, what are the timing with which we want to act with our customers with the actions we implement. , as well as the timing that we have foreseen for the analysis of the data, how or when to make any corrections to the actions we have taken, if the monitoring does not justify the strategy implemented.

If we read the answers obtained from the precious interview work of the University of Parma in 2019, there are data that, in our opinion, will leave us at least perplexed.

Here is the graph with the data:

The first and greatest source of perplexity is that 4% who claims to "not know" which means setting up a loyalty program, but just to have it available ... and makes us think this does not even know if, and when, they come revised the objectives (assuming that some have been defined).

We then move on to the largest slice, which is given by the 42.6%, which claims to measure the performance of these (presumed) objectives, even once a year.

We wonder how we can do a measurement of status, towards the objectives, only once a year considering that, when we go to do it, the same year has already passed, and we can no longer do anything to correct the shot, so it is as if we were reading a history book.

Clearly, after the considerations just made, let's not even comment on that 2.6% which, even, gets to look at what happens in one's own home, compared to loyalty programs, beyond the year.

Here we are faced with the 50% of companies (to be precise 49.2%), which have an important pool of customers, such as to justify the activation of a loyalty program, which has it active, and which treats it as if it were a plus, it keeps it as if it were a very low volume background music and measures the results, which are purely statistical, because it does nothing really interactive with its users.

These then let things go their own way, they only carry out final statistics (when it is done), there is no question of whether the loyalty program, linked to their loyalty cards, meets the needs or not, brings home set goals, create value, have a return on investment, correct the shot if things don't go as planned.

Fortunately, there is also a part of companies that, every semester (18.6%), or every quarter (in this case 32%), which play a really active role in their loyalty programs and ask themselves questions aimed at work on it ... as protagonists!

It is clear that, according to our way of seeing things, that 32% that reviews trends on a quarterly basis is the best situation in itself on the whole analyzed panorama, but here too we need to make a clarification.

If we were to set up an online advertising campaign on Facebook, Instagram, Linkedin, Google AdWords, etc. and, if we think we are going to review the results, strategies, etc., set ourselves goals with a latency time of 3 months, it would mean that we are willing to potentially throw away a lot of money because, in this case, the trends must be controlled, EVERY DAY, to possibly make corrections, make additions to the A / B tests etc.

Why should it be any different with our loyalty cards and associated loyalty programs? Perhaps because (evidently), real programs are not, they do not make interactions and therefore it is also okay if we just check the annual statistics or more.

At this point let's say something!

If we are faced with these data, it really means that in this field there is really everything to build; in other words, retailers obviously believe it is essential to have a strategy for customizing offers, but then they do nothing to get closer to their customers and this is demonstrated by the facts.

Have you ever received personalized discounts ONLY FOR YOU?

Just for you, it does not mean that you just need to send an email with the simple "Hello Mario" or "Hello Philip" or "Hello Francesco", where only the name is changed automatically but the content always remains the same, but where one is made discount exclusively for you!

Wanting to give a well-known example, to date in 2020, the well-known Sky TV, clusters customers by age group and proposes the "Sky only for you" loyalty program reserved for customers who have at least 3 years of subscription seniority, 6 years, 9 years etc. linking to each bracket of services or concessions more than the younger company and subscription customers.

This is a prime example, however, of just beginning! What does it mean? Immediately explained.

If we go to create gigantic containers where all customers who meet the criteria of 0-3 years of subscription, 3-6 or 6-9 etc., considering that Sky has 5.19 million customers, it means that if we were faced with even ten containers, we would place on average, in each container, the beauty of 519,000 customers who at that point would be "guided and encouraged" all by the same loyalty system, with all the differences that can exist in a audience of 519,000 customers multiplied by the ten containers created.

These, in our opinion, continue to be opportunities to rain even if there is a timid but laudable attempt to differentiate.

We are in August 2020 and therefore, to date, our answer is that we do NOT see any personalized discount in the commercial landscape, there is no discount really centered on the single individual (except for the birthday discounts that make chains such as "Old Wild West "), no personalized communication, except for the name (see the example made before with the personalized email) and no concrete experience of personalization.

This is the real starting point of our work, of everything we have created in terms of platform and mobile APP, as we are going to offer a new personalized loyalty experience thanks to a real user or customer experience, where everyone counts. one (remember our saying "One is One") and where the behavioral model of each individual is measured on the SINGLE person and not on clusters based on huge groups of them.

All chapters of: Loyalty 2.0

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