Loyalty Solutions

You have launched a loyalty programme, yet your sales have remained static and your costs have risen due to the cost of points or discounts offered to the members.

The reality is a small percentage of really loyal customers are generating the majority sales and profit. Conversely there are larger numbers of customers who are opportunistic or "freeloaders" who only look for the best deals.

The main aim of a successful loyalty programme is to align larger rewards with customers who spend more, shop more frequently and who are currently transacting business with the programme provider.

Successful loyalty programmes provide uplift in sales and profitability but perhaps more importantly provide information as to who the best customers are, what and when they buy. This information is strategic to gaining competitive market advantage, as well as redefining many internal customer-aligned operations such as purchasing and inventory.

The first airline frequent flyer programme appeared in 1981. By year 2000 McKinsey estimated that sales of frequent flyer points accounted for over 40% of the top 5 airlines operating profits. However if points are earned but not "burned" they can represent a dangerous financial liability either for many years or indefinitely.

Providing a 0.5% rebate on sales as the 'big idea' for a loyalty programme (or any other simple discount) does two things: firstly it immediately eats into the profit margin (plus the running costs of the scheme) and secondly even if a member spends as much as AED 10,000 the reward is only AED 50 - enough for a few free cups of coffee!

Customer loyalty is a hot topic, and proliferating many new schemes, but by dealing with independent loyalty specialists like True you are more likely to derive a successful outcome.

Talk to us today to know about.

a. How we can organize a loyalty programme for your customers (or)
b. If you already have one, we can boost its performance