Areas of Expertise
Program Design & Evaluation
Whether the goal is to create a new value proposition centered around a frequency and rewards mechanism or assess an existing program that may not be fulfilling its objectives or is operating inefficiently, I possess extensive experience in analyzing industry insights and best practices to recommend loyalty program designs that can set industry benchmarks. Similarly, when the objective is to review an existing program for enhancement or rectify issues impacting its appeal, effectiveness, or cost-efficiency, I collaborate with clients to identify areas of opportunity and propose necessary improvements.
Reward Strategy
Rewards serve as the primary incentive through which programs aim to modify and improve their customers' purchasing behaviors. However, a common misconception is that the most successful programs are those offering the most benefits and gifts, or that these incentives must consist of trendy or highly expensive items for the program to be effective. In my experience, the foremost consideration should be to ensure that the rewards are relevant to the various types of members, attainable challenges for participants, and not overwhelming in quantity, as an excess of rewards can discourage action.
Economic Modeling
Customer loyalty programs are a long-term commitment, and as such, their financial sustainability should be a top priority. The initial step in planning a program that maintains the appropriate cost structure while remaining self-financing and profitable is to understand which clients we intend to incentivize and which behaviors we aim to reinforce. While many programs may initially lack sufficient historical data for modeling or forecasting their outcomes, my approach involves setting behavioral and cost goals from day one to guide the program in the desired direction.
Segmentation Strategy
A common mistake in most programs is to plan them with the average client in mind. However, if I had learned anything from them, it is that they attract a large number of individuals with varying profiles, values, and needs. Differentiating customers based on their habits and behaviors not only enables us to refine and enhance the value proposition for the most valuable target groups but also plays a crucial role in planning relevant interactions with target customers as part of the program and for marketing or commercial efforts.
Communication Strategy
Beyond the impact rewards have on the frequency and value of participating members, one of the greatest opportunities for customer growth is to leverage the direct communication channel that loyalty programs create. One of the primary contributions I have made to the brands I have worked with is assisting them in designing segmented, relevant, and personalized contact plans that promote cross-sales, customer reactivation, and increases in average spending.
Program Management and Operation
For companies embarking on loyalty programs, one of the frequently asked questions pertains to how to establish the internal structure to operate it. This includes identifying the necessary personnel, their qualifications, the program's required areas of coverage, and, of course, defining the reports, KPIs, and other success indicators. Effectively monitoring the program to enable timely responses with corrective actions is a significant concern for those undertaking such programs, and it is an area in which I have provided guidance to the brands I have collaborated with.
Loyalty Beyond Rewards
Not all loyalty programs need to adhere to traditional mechanics involving points, miles, and rewards. In certain cases, these approaches may not be advisable, considering factors such as industry type, contribution margins, and product distribution methods. Sometimes, the recommended approach may involve creating a community, establishing a recognition program, or implementing a relationship marketing strategy. Throughout my career, some of the most innovative programs I have been involved with did not involve the typical technology, financial commitments, or rewards catalogs.
Exit Strategy
At times, implementing a new strategy requires more than just improving the existing program; it takes a complete overhaul to design a new one from the ground up. In such cases, it's crucial to understand how to communicate this change to various customer segments, determine the appropriate timing, and persuade them that it is in their best interest. On multiple occasions, I have had the opportunity to work with clients at this stage and successfully overcome the challenges it entails.