Profitable loyalty plans? 

Achieving customer loyalty has become an unavoidable mission for any company, although doing this successfully is something very few companies have achieved. The majority of Loyalty Schemes and Clubs are only based on gifts and promotions and generate little added value.

A good loyalty plan must be put together with customer insight:

• Customised communications (thank you’s, apologies, congratulations, etc...)
• Privileges that do not generate large expenses and costs for the company, but which are perceived as high value
• Discounts that the customers could not obtain on their own
• Gifts that capitalise the brand image and positioning and do not destroy it

Because no two customers are the same

Because no two customers are the same, we can not apply the same loyalty scheme across the board to all of them. Customers tend to have different expectations and look for different things from the companies they deal with. Definitively, what is important is to make the customer feel “unique” like he or she belongs to an exclusive circle of friends.

"The first step to successful customer loyalty is to obtain an in-depth knowledge of the customer and his/her value"

Loyalty schemes must be aimed at retaining and rewarding loyal customers who are of high value,and not all of them are.However, the schemes must also have the objective of gathering updated information for the customer information data base, improving the company´s knowledge of its consumers in order to design more effective offerings and promotions and raise corporate profitability.

Five Step Profitable Loyalty Plan

1. A Segmentation Map based on the Customer Value. An in-depth Segmentation of the customers that allows different plans to be designed for each segment. 
2.  An Initiatives and Privileges Plan by segment. Each segment must have its own marketing and commercial plan in which the privileges and actions are considered of interest and adapted to the customer’s expectations and value. 
3.  A Communication and Motivation plan for the Club based on customer moments. Marketing activity related to specific events is much more effective than any generic campaign plan. If a customer has lost his luggage, has complained about the commission or has not bought anything at the supermarket for some time, this provides a great opportunity for us to establish relevant, personal contact with him.
4.  A Management dashboard for the Club Segments. To be able to select targets with ease and to be able to understand the evolution and results of the actions in each segment. 
5.  Learn, learn and learn. From the emerging segments, from new incipient niches, from the privileges and prizes that generate loyalty and those that do not. The best loyalty plan is that which is never perfected and evolves over time.

At DAEMON QUEST, we know how to design successful loyalty strategies, by taking advantage of the best available tools and techniques (user clubs, loyalty cards, selective promotional discounts, etc.) to provide the customers better perceived service & value, and at the same time, improve customer knowledge in order to design a more profitable and attractive offering.

If you want to obtain all the potential from your Loyalty Plan or design it profitably, we can help you...