Most of the Trade and Channel Loyalty programs follow the standard structures of points based redemption or slab based achievement. But in competitive markets where the trade is exposed to loyalty programs from multiple brands, these aren’t enough anymore. Especially when the trade partners are high net worth individuals. What can cut through the clutter and grab their attention however are personalized rewards.
Loyalty programs for high net worth trade partners need to be structured without the earning and burning of points. Instead they should be structured into a tiered program with high entry barriers with the membership up for review periodically. The rewards in such program should encompass festival gift kits, dining experiences on special occasions, family engagement activities and other kinds. Personalized rewards need to be included in this mix along with the aforementioned rewards.
Personalized rewards are essentially those that are curated and sent keeping in mind each individual trade partner’s tastes in mind. It is going beyond sending out standard rewards to everyone. The way to do it is as follows.
The process for this can be broken down into 3 steps.
- Data Collection
- During the launch of the program there should be a detailed interview with each participant where the data about hobbies and interests of the participant will be collected. Questions can be more detailed beyond just asking them to name their interests. Questions such as “Which activity on a trip that you have done in the last 5 years is the most memorable to you?”, “Which interest groups are you part of?”, etc.
- Based on the data collected above participants needs to be segmented into different segments. These segments will help in curating rewards and ensuring no one is left out. Some participants can be part of multiple segments too. A few indicative segments are Cricket fans, Rock Music lovers, Bibliophiles, Adventure lovers, Philanthropists, etc.
- Basis the segmentation, and the budget available, rewards are to be curated for each participant. A lot of thought and research needs to go into this stage. The management team needs to keep an eye out for new launches or events scheduled over the near future to be able to pick the right rewards and timely action needs to be taken for organizing the experience.
By following this process personalized rewards can be sent out to the participants of loyalty programs. This will ensure that the program will be remembered when compared to other competitive programs. It comes with a higher cost of management, but that cost is more than justified by the quality of experience provided to participants.
If you want us to help you out in running a clutter breaking loyalty program by including personalized reward management, please leave your details in the form in the link below and help us get in touch with you.