Loyalty Marketing Program
A retailer’s profits are highly elastic to changes in customer loyalty because of the high cost to acquire and serve new customers versus the low cost to serve loyal customers.
In response, many retailers have launched loyalty programs or are considering to do so. Shoppers are now deluged with an overwhelming number of undifferentiated loyalty programs. Retailers are increasingly concerned that current programs are becoming a cost without incremental lift to the business. Leaders in retail are taking another look at their program before and after a launch to ensure rewards are uniquely relevant to their target shopper and deliver a clear ROI.
What We Do
TPG’s loyalty marketing program design begins with a deep understanding of your most valuable shoppers and what makes them profitable to build and refine a loyalty program to specifically drive the desired behaviors. A partial list of our loyalty marketing consulting services include:
- Loyalty Program Strategy: Seminar and workshops are conducted to enroll key stakeholders around a common vision on loyalty and operational constraints. The seminars will establish goals and objectives for the design or reinvention of your retail loyalty program.
- Benchmarking Study: TPG will provide loyalty marketing benchmarking study of 3-5 key retailers that match well to your retail profile.
- Customer Value Segmentation and Core Customer Profile Analytics: TPG will provide an in-depth, snapshot of segmentation for the retailer’s active customer file and provide answers to key CRM questions that ultimately feed and drive the loyalty profit and loss model.
- Loyalty Profit and Loss Model: TPG will develop a loyalty program P&L based on the current state of a program or the forecast of a new program’s incremental profit and costs.
- Loyalty Program Research – Exploration and Validation: Two rounds of customer research will be used to create the loyalty program design process. TPG will design and execute surveys to understand attitudes and usage of your customers regarding loyalty programs as well as validate the strongest concepts for breakthrough concepts.
- Loyalty Program – Technology Requirements: In some cases, the desired program rewards, messaging or access require adjustments to current technologies and new customer data capture. This module provides clear business requirements and a summary of potential system providers.
- Final Program Design Recommendations and Testing Plan: Completed documentation of the specifications, rules, policies and procedures for your new loyalty program will be provided along with a financial forecast based on program design recommendations. Detailed testing and implementation plans including: creative program materials, messaging, and program test measurement will also be completed.