Rewards that are given out in Loyalty Programs are the biggest perception drivers for any program. The success of loyalty programs is dependent on the choice of the rewards more than any other factor. As part of running loyalty programs for our clients we process rewards in huge scale and thus have a ringside view of trends in what rewards people are going for, given the choice. In this post we cover 5 major trends that we have observed over the past few years of running these programs for our clients.
Broadly there are two different kinds of Trade Loyalty Programs in terms of processes. One kind is where the transaction data is tracked through an ERP system or equivalent. In this kind, there is no further activity required from the user apart from doing the transaction.
The second kind of programs are those where the user needs to record their purchases to earn points. The user trigger is the first step of these loyalty programs and it becomes very important to drive that as without interest from the users the program becomes dormant very quickly.
Trade and Channel Loyalty Programs have two basic success metrics. One is the operational excellence part which is essentially driving the basic deliverables of the program. This include stuff like timely communication, accurate data management and on-time reward delivery. The second kind of metrics are those which actually measure the difference made by the loyalty programs. These include things like sales growth, stickiness and target achievement.
Running an In-Store Promoter Program is one of the most effective but at the same time most challenging aspects of Sales management. Having a knowledgeable and motivated in store promoter can go a long way in amplifying the sales from an outlet but in the competitive world of In-store promoters it is important to get innovative to drive retention and motivation.
When run efficiently, trade loyalty programs become the primary tool through which pay-outs are made to trade partners. All non-margin payments such as schemes, incentives, rewards, etc are passed on through the loyalty program. This amounts to quite large sums of money being distributed through the programs. In this context it is extremely necessary to have proper checks and balances in the system. A few of them are highlighted below.