The loyalty program is a long-term marketing activity used to build and maintain positive relationships with selected, most attractive clients for the company. A carefully selected loyalty program strategy allows to increase sales of a product or service at much lower costs than other forms of promotion and advertising.
Product and brand loyalty is defined as a level, in which the customer consistently maintains a cheerful outlook towards a given product, company, place of purchases and shows a willingness to purchase it despite the existence of economic factors that speak in favour of purchasing a competitive offer.
Models of cooperation with us include both the creation of new loyalty programs – their comprehensive implementation and running or improving already running programs.
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Steps of working with IQFM in the field of loyalty programs:
Understanding the needs and defining the objectives of the Loyalty Programme
The first stage of our cooperation with Customers is an in-depth understanding of the needs of the organization and the goals set for the Loyalty Programme. Most often, this is done during workshops conducted by our team with representatives of various Customer departments. This meeting allows to determine the goals and requirements of the organization: the value of market share, the size of the data set, revenues and margins realized on sale to loyal final buyers and commercial intermediaries, the type and sources of data needed, and the methodology of work.
Data Collection and Analysis
The second step is data collection, analysis, and design. It takes place through interviews with the main stakeholders of the Program (employees, customers, suppliers, intermediaries), organization of focus groups, analysis of customer research, etc. The conclusions of the analysis illustrate the input situation – assessment of readiness to implement the program (organization, IT infrastructure, budget), map of readiness of the organization and competence gaps, description of the external situation (partners, service providers, competitors, etc.), financial synthesis of selected business models of the program, including the costs of implementation and assessment of loyalty effects (quantitative and value factors).
Recommendations for solutions
Understanding the objectives and analysing the situation allows to develop recommendations of the mechanics of the Program, the method of implementation and the financial plan, including the legal and tax model. The approved documentation is the basis for formal cooperation arrangements and allows the implementation phase to proceed.
Implementation of the Loyalty Programme takes place through close cooperation with the Client and includes, among others: formalisation of the Project Team; confirmation of the assumptions, regulations, plans and budget of the Programme with the Client’s Management Board; adaptation of diagnostic tools; creation, adaptation or purchase of the IT system; planning of a secure architecture and structure of data circulation, information, system integrations, questionnaires, etc.; design and testing of information and advertising materials about the programme; signing contracts with service and reward providers, agreeing on logistics and distribution of prizes; agreeing on the coefficients of measurement of the effectiveness and efficiency of the Programme; preparation of the risk management system.
Implementation and operation of the Loyalty Program is complicated. Lack of experience can lead to shortcomings, omissions, and errors. Any corrections or re-attempts to create the Program are awfully expensive. Therefore, we invite you to cooperate with our experienced and professional team, which has experience in introducing many Loyalty Projects.
Why is it worth doing?
Thanks to many years of experience of our team, we will take care of such elements of the program as:
- Strategy and mechanics of the programme
- IT system with a loyalty engine
- Construction of the prize catalogue
- Purchase of prizes and logistics / POS logistics
- Legal and tax issues
- Financial models and budget
- Program Support Office
- Creation and communication
Are you interested? Take advantage of selected areas of our logistics services or rewards now! Please do not hesitate to write to us for more details.