Program health and beyond
Successful loyalty programs are the catalyst for overall brand and enterprise growth. We go beyond traditional financial and liability modeling and take a broader look at program health through two lenses – the financial lens and the member lens. This holistic view ensures we financial strategy from every angle.
How we analyze loyalty from a financial and member lens
From a financial lens, we look at four key areas:
Program Penetration: What percent of the customer base and transactions are attributable to loyalty? How is the program performing against active and inactive rates?
Investment Allocation: What is the fund rate? What is the impact of rate changes? What is member ROI?
Cost Efficiency: We analyze value congruency, cost control mechanisms, and payback rate.
Revenue Optimization: To optimize revenue, we focus on retention, growth and acquisition rates and look at pricing relative to the market
We also look at three key areas when evaluating the program through the member lens:
Transactional Benefits: Are the hard benefits rich enough to stand up in the market?
Customer Experience: Does the program deliver immersive, seamless experiences that prompt the member to engage more deeply?
Emotional Connection: How does the program try to emotionally connect with the customer?
Commonly requested services to help build financial strategy:
Etc (from Laura’s team)