5 Best Practices in Logistics of Loyalty Rewards

The most challenging part of running any large Rewards program is handling the logistics of all the rewards. This is the part where an agency’s experience is most required for any company. Based on our considerable experience of managing large scale loyalty rewards programs, we have identified the following best practices in running any such programs.

· Recheck the addresses before shipments

This is one of those practices which might add a couple of days in shipping products but will save multiple weeks in delivering them. Analysing the addresses and identifying addresses which are incomplete or incorrect will lead lesser number of shipments which are returned. Over time we build the knowledge of what checks need to be run on addresses to identify the incorrect ones.

· Select the right Logistics partner

Multiple logistics/courier companies have to be used in any large scale campaign. No single company in this domain can provide a one stop solution for all the shipments. Different companies are strong with different geographies and different products. Identifying their strengths and weaknesses through experience and utilising each of one of them in appropriate scenarios is key for successful loyalty rewards management.

· Keep the recipients informed

A recurring theme that keen readers would have noticed in our insights is constant communication with the audience of loyalty programs. Especially in reward campaigns, communication regarding estimated dates of delivery, any anticipated delays, information requirements, etc needs to be sent out regularly and through as many channels as possible.

· Stay on top of the data

Daily tracking of rewards transit status is the most important task for any operations managers. Daily tracking ensures timely identification of problematic cases which need quick remedial actions. Not doing this will lead to reactive operations where action is being taken after escalation by recipients which is a poor approach to the entire campaign.

· Proper response to service failures

In spite of all these practices, the nature of these projects invariably ends up with situations where there is some sort of service failure. This can be in the form of wrong product delivery, damaged product, lost product, etc. In such cases it is important to recover the situation by taking quick remedial action. The way to do this would be to have strong SOPs guiding such situations and having well trained and experienced managers overseeing the operations.

If you want us to put these ideas to use in your Loyalty Rewards projects, please contact us by filling the form in the link below.

Topics: Loyalty Programs

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