8December 2021IN MY OPINIONAn effective loyalty program can be the key to driving customers to self-identify. To be "effective", however, it is critical for loyalty program owners to emphasize the loyalty program design process.As impending actions by Google and Apple shifts power to consumers to determine how much of their online activity is being tracked and shared, customer knowledge and the need to have a holistic view of customer interactions is being pushed to the forefront for many retailers. This shift to consent-based targeting is forcing retailers to place a premium on harnessing and managing their 1st party data.A retailers 1st party data is any information that has been willingly provided by their customers as part of an interaction with the brand. This could be anything from an email address, mobile phone number, birthdate, address, website, or app actions or even data from surveys or customer feedback.The issue that most retailers face is not a lack of data from their customers it's the lack of a data strategy to manage and organize this data into a usable and actionable format. One of the key barriers is simply that from transaction to transaction some retailers don't have a process in place to resolve identities. This means that the ability to stitch together a customer's full transactional history as well as other brand interactions is either spotty or non-existent.When there is no compelling value exchange between a retailer and its customers to prompt a customer's willingness to share their data consistently this hampers the enterprise's ability to have a robust identity resolution process. Often this is when the discussion around implementing loyalty programming surfaces. And while it is true that loyalty programming can create this mutual value benefit, the extent to which this is successful is largely dependent upon not only why a loyalty program is needed but how loyalty programming is derived.The diagram below speaks to 5 key elements that should be considered when loyalty program development is being considered. Let's look at these in detail.Loyalty Program Design ProcessDefine Probably the hardest solution when developing loyalty programming is how to forge a deeper emotional connection to the brand. Simply exchanging a reward currency for dollars spent is not going to achieve against this goal and deeper preference should be one of the primary aspirations for any loyalty program strategy. Because this is emotionally driven, that's where brands should start as part of the unlock. What do you know already about why you are preferred? What emotional need do you meet? Do you enhance a certain sense of self or personal expression? You need to understand how your brand identity supports your customer's personal identity. Knowing why your customers connect with you emotionally will ensure your program structure and messaging reinforces this attachment.As the loyalty program owner, there are many ways to uncover your customers' emotional connection to the brand. Pay attention to your social sentiment. Approach your Customer Care partners and ask to listen in on calls or ask for access to their call logs. This experience will not only show the good but also unearth potential negative sentiments that you need to be aware By Alisa Stewart, Sr. Director, Acquisition, CRM & Loyalty, Party CityTHE "HOW" MATTERS AS MUCH AS THE "WHY" WHEN IMPLEMENTING LOYALTY PROGRAMMINGThe issue that most retailers face is not a lack of data from their customers it's the lack of a data strategy to manage and organize this data into a usable and actionable format
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