On the First Day of Loyalty Marketing Nirvana: Organize and Commit Stakeholders
“On the first day of loyalty marketing nirvana, my loyalty marketing mentor gave to me…”
It’s not a partridge in a pear tree. What does one do with a partridge in a pear tree, anyway? Partridges, pear trees, partridge families, Danny Bonaduce—let’s forget all of that.
The first day of loyalty marketing nirvana is all about organizing and committing stakeholders.
Why is this important?
Buy-in and support from all stakeholders is critical for building effective loyalty marketing initiatives—which is why we must first understand who needs to be part of the team.
Your loyalty program—although generally marketing driven—also needs buy-in from the key decision maker, as in the person making the final call. In addition, your technology team will ultimately be responsible for procuring, implementing, and owning the loyalty platform. Your operational team will be concerned about training, workflow, operational metrics, and implementation at either the store or point-of-purchase level.
And then you have your financial stakeholders. It’s vital to get these stakeholders involved early on because loyalty programs carry significant financial implications on the balance sheets, and the profit and loss, and there is a large amount of money involved. For even a moderate-sized business, implementing a rewards program based on purchases can lead to millions of dollars in associated costs.
Do not make the common mistake of involving your financial team at the end of the process. The financial stakes are too large, and they need to be involved early on to perform due diligence to ensure all the financials align.
At the outset, get all of your stakeholders to agree on the objectives and metrics you will use to define success. High-level questions are a good place to start. Here are a few examples:
- Why do customers care?
- Why does our CEO care?
- Why do store owners care?
- Why do managers care?
After you’ve answered the high-level questions, start identifying the variable measurements you will use to determine success, and come to an agreement on them. A good practice is to brainstorm a wide range of metrics and then pare them down to the specific metrics you will use to determine success, from both qualitative (soft measurements, such as brand trackers) and quantitative (hard measurements, such as conversion rates) delivery samples once your loyalty marketing program is off and running.
Next time, we’ll celebrate Day 2 of loyalty marketing nirvana: value drivers. Bring your party hat, because it’s going to be a real hoot!
Learn more by watching the webinar, 8 Essential Steps: Championing Your Investment In Loyalty Marketing.