Optimal, not equal


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In an earlier post, we had highlighted the importance of driving customer awareness of your loyalty program and the benefits that it offers.   Reinforcing the value you bring should be part of the normal cadence of your communications.

However, there are some benefits that are more expensive and operate on a breakage model.  Over usage can blow your budget.  Some brands address this by removing the benefit altogether.  But there is another way.  Depending on your brand, your program structure, and your philosophy, more expensive benefits can be reserved for higher value customers.  On the other hand, if all of your loyalty program members receive the same benefits, you can still influence the use of individual benefits through a targeted marketing strategy.   The promotion of distinct benefits can be directed to customers where they are likely to have the greatest impact on profitable engagement ─ where the incremental value is greater than the cost.

The foundation of this strategy is a behavior-based customer value segmentation.  This, together with ongoing behavioral learnings will support how you can best allocate your limited resources to drive optimal outcomes.  

Sustainable.  Engaging.  Profitable.  Smart.  Is your loyalty strategy hitting on all of these?


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