Best-in-class loyalty programs are financially viable, operationally feasible, and have compelling value propositions. Kobie looks at this view of program health through two lenses; the financial lens and the member lens, both of which are critical to creating a program valuation that Finance, Marketing, and Tech all can endorse.
To achieve this holistic view of loyalty programs that captures both lenses, the Loyalty Health Monitor™ ensures viability, feasibility, and delivers better decisioning. As part of Kobie’s Leading Loyalty Services suite, the Loyalty Health Monitor™ indicates what’s driving program performance, along with a longitudinal understanding of how those indicators change over time. Unlike standard performance monitoring that comes out-of-the-box from SaaS providers, these data-driven recommendations improve performance with the backing of extensive human expertise to validate the recommendations.
What Loyalty Health Monitor™does:
- Identifies and highlights key performance drivers from both business and consumer perspectives
- Tracks how performance indicators change over time for a deeper understanding
- Compares performance against industry category and competitors
- Offers actionable insights to improve performance
- Optimizes program facets to guide investment choices
How it works:
- Captures Business Value through a modified financial model analysis approach
- Captures Customer Value through a survey approach
- Leverages internal benchmarks to provide an initial Loyalty Health Index score
4 Dimensions of Business Value:
- Program penetration – your growing share across value drivers like sales, opt-in and data capture
- Investment allocation – not about spending more, but spending smarter and investing in the right opportunities
- Cost efficiency – how to make every dollar work harder (where to set rewards threshold, micro-burn, optionality etc.)
- Revenue optimization – unlocking the new revenue streams through partnerships, co-brand, paid subscriptions, etc.
4 Dimensions of Customer Value:
- Economic value – the member’s perceived value of worth as determined by their preferences
- Functional value – the perceived benefits or usefulness of the program to members
- Experiential value – the value members perceive from an elevated experience
- Affective value – the emotional impact and connection members perceive from the program
Loyalty Health Index:
The Loyalty Health Index is a single number that gauges your overall program health, directly correlated to 48 indicators of how your program is performing financially. The score range is from 0 – 100, indicating great, good, fair, poor or very poor health status.
Some of the top performing loyalty programs in market today took two decades or more to become what they are now. So how do you get there sooner?
Reach out to Kobie to learn more about the Loyalty Health Monitor™ and other strategic services, as the only named Leader in Loyalty Services by Forrester.
