Loyalty and Reward Products

Loyality Check Programme Performance Tool

The Customer Strategy Network (CSN) has launched a new evaluation service called ‘Loyality Check’ to help brands that are operating loyalty and rewards programmes to demonstrate both the effectiveness and profitability of their initiatives. The service provides an unbiased assessment of every aspect of programme operations and provides measurement, insights, and recommendations to help improve performance. According to Mike Atkin, founding partner for the CSN, “Data-driven loyalty programmes continue to be a priority in the marketing mix worldwide, and the pressure to prove bottom line results has never been greater”. Consequently, Loyality Check offers a full and frank investigation and measurement of all programme elements, identifies gaps, competitors, best practices, and recommendations for practical performance improvements. Its scope includes business strategy, data analytics, customer engagement, communications, technology, operations and financial liability. According to CSN co-founder Bill Hanifin, “Most loyalty programmes need a ‘reality check’ as customers aren’t engaged enough, and financial returns could be improved.”
mikeatkin This article is copyright 2010 TheWiseMarketer.com.

Web: http://www.loyalitycheck.com

Technology Selection Tools

Methodology
Customer Strategy Network use a tested methodology for loyalty and rewards platform evaluation and selection. The identification, evaluation, and scoring of suppliers offering comprehensive outsourcing of the services needed to operate a loyalty programme is based on the following Key Decision Factors:

  • Requirements
    • Gather and document full requirements to meet existing operational needs of the programme sponsor and anticipate additional requirements driven by strategy evolution.
  • Scan to Fit
  • Match requirements set against known capabilities of leading solutions providers based on historical benchmarking criteria
  • Filter candidates based on additional factors including PCI compliance, database standards, and preferred operational models (license, hosted, SaaS)
  • Capability
    • Ensure that candidate suppliers have capabilities to meet requirements
    • Distinguish between core expertise and any areas “to be developed”
    • Document and categorise characteristics which set each supplier apar
  • Execution
    • Evaluate the ability of each supplier to deliver on the capabilities promised
    • Confirm interest in supporting diverse markets and existence of infrastructure to provide expected levels of operational suppor
  • Reward Delivery Model
    • If required, prioritise candidates by reward and ancillary services offered
    • Evaluate benefits of alternative models for reward currency and programme liability management.
  • Pricing Model & Economics
    • Decipher and compare pricing models based on transactions, accounts, activity levels, subscription fees
    • Compare componenets of start-up and implementation costs
    • Forecast longer term cost of ownership for Client
    • Prepare quantitative evaluation of all points based on proposals receive

Process & Deliverables
The process for evaluation will include the following steps:

  • Gather and categorise the processing requirements for Client across its operating footprint
  • Anticipate additional needs based on the rewards strategy evolution to complement existing requirements
  • Compare the requirements set to the leading loyalty processing platforms and document a short list of available solutions that most closely map to the requirements set
  • Document gaps between requirements and market offerings for inclusion in RFP document
  • Recommend 3 or more providers meeting requirements based on evaluation criteria
  • Conduct product demonstrations with candidate providers, review product documentation and support and service level agreements
  • Complete scoring matrix to evaluate candidates and deliver a recommendation of the top 1-2 suppliers, more if needed
  • Prepare Request for Proposal document as needed to solicit provider proposals
  • Review responses, score and recommend preferred solution
  • Project Management assistance is available upon request to ensure implementation and configuration of selected provider solution is completed as agreed and to meet Client requirements.