This document discusses common problems with conventional customer loyalty programs and provides suggestions for rethinking loyalty programs. It questions whether current programs are effectively increasing customer loyalty and return visits. The document advocates designing loyalty programs that are personalized using customer data and preferences across multiple channels like mobile, email, and social media. Loyalty programs should reward customers for engaging with the brand through reviews, surveys, and social sharing in order to strengthen relationships.

1. Email Case Studies and Examples
What’s Wrong With Conventional
Customer Loyalty Programs

2. Questions Brands Be Asking Themselves
• What is the goal(s) for our loyalty programs?
• What have we spent to date on these programs?
• How much do we spend running and administering
them today?
• What is the cost of the rewards we have issued?
• What is the total annual investment in loyalty?
• What is the ROI (to date) for these programs?
• What are the consumer attitidues towards our loyalty
programs?
• What would happen if we didn’t have a loyalty
program? Would customers cease doing business
with us?
• Is there another way to think about loyalty?

3. How We Do It
Loyalty: The Bigger Picture

4. Lack of Focus on Creating True Loyalty Relationship
4

5. Rewards Tend to Be One Size Fits All

6. Too Complicated and Card Based

7. Programs Not Geared to Mediums that Matter

8. Programs Not Designed to Mine Feedback/Reviews

9. Data Isn’t Being Used to Optimize Programs

10. • Loyalty should not simply be the classic points/rewards based
program. Rather, it needs to be an omni channel approach to
targeting the consumer with highly personalized and relevant offers
that drive incremental store visits.
• Mobile absolutely must be a centerpiece of your customers loyalty
experience with your brand. This does not mean that you create an
app and consider the task completed. Done correctly, all key mobile
touchpoints (SMS, app, mWeb, mWallet, display, etc.) should be
extensions of your loyalty program and seek to deliver relevant offers
and rewards that “surprise and delight” your customers. But so too
should your other key digital touchpoints (email, social, mWallet)
• The customers loyalty program number should be their cell phone
number and registration needs to immediately be simplified in
dramatic fashion.
• Rewards should not be a “one size fits all” approach but rather geared
around what consumer has told us they want – either via preference
minding, behavioral data or transaction history.
How to ReThink Your Approach to Conventional Loyalty

11. • Design automated journeys that seek to progressively mine preference data
after initial registration is completed. These can be polls, surveys, preference
mining pages or even social authentication schemes which induce the
consumer to provide increasing levels of data about themselves in return for
“highly personalized offers that will be exclusive to loyalty program members”.
• When customer reveals preferences, responds to surveys/polls, gives a
positive review or otherwise engages the brand … Reward that behavior
(S&D) and reinforce it.
• Consider approaching loyalty from a “surprise & delight” standpoint where
you don’t have points or plateaus but rather, utilize data to reward consumers
in a very personal way.
• Emails should be used to touch consumers with personal offers based on
their preferences/transaction history or behavioral data.
• Social should also be another channel where we touch loyal fans of the
brand with offers that reward them for supporting the brand and creating
viral mentions.
• For mobile consumers … use SMS or PUSH to direct “rewards” to your
consumers
How to ReThink Your Approach to Conventional Loyalty