It’s time for your annual loyalty check-up

Incentive Solutions

You know how, every year, you take your car to the vehicle testing station for a warrant of fitness (WOF) to make sure it’s fit for purpose and still able to reliably do what you need it to? Well, we’re here to tell you that the same is necessary for your loyalty and recognition programme.
In much the same way as your car may need fine-tuning or maintenance work to continue functioning at its best, so too will your strategy around rewarding customer or staff loyalty.

We all know that no two years are the same in business and, with tougher economic times forecast, you can expect that changing market dynamics, employee needs, and customer and consumer expectations will impact the desired effect of your loyalty initiatives. With this in mind, conducting a review of your rewards programme could be one of the best things you can do for your company this coming year.

At Incentive Solutions, every programme we create is bespoke to our customers’ specific needs, and as such, we audit our reward programmes every month, and review our strategy each year. This ensures we can adapt to changing environments.

Let’s take a look at what a good loyalty programme WOF should assess and why smart business leaders will schedule a review sooner, rather than later.

A good recognition programme review will be data-led and will consider the following key performance indicators (KPIs):
  • Your programme’s enrolment rate
  • Participation / engagement rates
  • Repeat purchase rates
  • Average spend per member
  • Percentage of sales from loyalty members
  • Customer / consumer / employee retention rates
  • Incremental margin delivered
  • Movement of customers between tiers
Not only should an assessment consider how your loyalty initiative is currently performing against these metrics, it should stress test your numbers for the inevitably more challenging times ahead.

Strike the right balance
For any programme to be successful it needs to, firstly, be widely known and understood by your target audience. From there, it’s up to you to ensure your programme is aspirational enough to drive business performance, and accessible enough to inspire participation. A US study by Statista reveals over half (57.7%) of millennials say they’d abandon a brand’s loyalty programme if the rewards weren’t compelling or relevant. A WOF can ensure you’re striking the right balance and make sure your business doesn’t fall victim to these tendencies.

This is where a cookie-cutter approach to loyalty programmes often fails to deliver and where you need a company that can deliver a broad range of rewards. At Incentive Solutions, we offer the broadest range of rewards in the Oceania market.
Do your homework
A small amount of pre-work before you assess your numbers can go a long way to boosting the impact of your programme. Consider conducting a survey of your audience yourself – before your WOF – to establish how well-known your programme is and to what extent people are engaging. Having a handle on the active participation levels of your member base can help you unlock even deeper insights during your WOF review.
Don’t miss this valuable opportunity to gain fresh audience insights
Whether you’re attempting to engage employees, increase customer sales, or build consumer loyalty, you need to be confident your approach will generate a positive return on investment. Conducting a performance review of your recognition programme will allow you to verify which features need changing and which are most popular with your target audience – allowing you to dial up the good and increase your relevance. As an example, a report by the Harvard Business Review shows 52% of global brands are investing in mobile technologies, like digital wallets, as part of their customer loyalty strategy. Could this be a way for you to level up your programme’s offering?
Recommit to your business relationships
A thorough WOF will likely raise some questions which you’ll need the help of your audience to answer, so take the opportunity to reach out. Most people love to discuss their aspirations and drivers, especially with someone committed to helping them achieve them, so use the moment to connect with your employee, customer, or consumer base and update your understanding of what your programme members really want.
If you start the year by re-committing to these important business relationships, you can expect levelled-up loyalty in return.
We can help
At Incentive Solutions, we are experts in strategic loyalty programmes and, collectively, have over 100 years’ experience in helping companies grow. Our data insights team can review your loyalty programme using our state-of-the-art technology systems and identify any areas for improvement. We know no two businesses are exactly the same, so we’re committed to helping you craft a tailored programme that’s 100% bespoke to your strategy and brand.
If you have big growth plans for your business, consider a chat with us to discuss how we can help you deliver enough growth through your loyalty programme to make your investment cost-neutral!

Ready To Talk?

If you’re thinking of how to start growing your loyalty in the B2B sector, schedule your FREE and no-obligation consultation with one of our specialists.

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