We all want to achieve the highest level of success possible, and with loyalty marketing initiatives requiring significant planning to complete the journey, each step is critical. Missing a step could mean failure, but hitting your stride as you develop your rewards program can help your business reach new heights.
If you’ve been following along with our series, you’ve already generated and validated your best ideas and earned the necessary consensus. To continue with the journey to loyalty marketing nirvana, we must now calculate the true cost of the program.
So, how can you calculate the total cost of your loyalty initiatives and ensure your business booms rather than busts? Considering the size and scope of the program, upfront costs, ongoing costs, technology, marketing, and administration, even the most seasoned business veteran’s head might start spinning. However, breaking up the key costs into smaller pieces will help.
Here are the key considerations:
- How big is the program?
- How much are upfront costs, such as initial technology and supplies?
- What will be the ongoing costs, such as a monthly subscription program and maintaining supplies?
- Will your business need any new technology or training?
- How much will you market and upsell your new incentive reward program?
- Will you need additional staff to ensure the administration of the program is covered?
Answer each of these questions individually, and by the end you will have calculated the true cost of your program. As an added bonus, if you’ve been following our 8 Days to Loyalty Marketing Nirvana, you will have also developed a loyalty program that should reflect a great ROI. We’ll look to calculate that in our next post.
Would you like more help determining the total cost of a loyalty program? Our experts are here to help you reach new heights. Tweet us @TIBCO using the hashtag #LoyaltyLab.