Top four rules of loyalty



We share our top four central ‘Rules of Loyalty’ to help you implement and run your loyalty program.


1. Revenue. Programs should make you extra money

  • Good programs are well designed. More rewards costs should = more profit ≠ lower margin on existing business
  • When executed well, you should expect customers to: Stay longer; Buy more; Contribute more profit. Measure these things to make sure it is working.


2. Customer insights are gold

  • A loyalty program exists to help you better understand your customers
  • Program data analysis helps you present and market your products more relevantly and effectively
  • Better marketing and improved service drives greater value from customers


3. The proposition must be meaningful

  • Reward generosity is key to attracting rational-thinking customers as they consider enrolling – recognition and privilege keeps them engaged
  • Balance enough investment in rewards to make the value exchange worthwhile to the customer and you
  • Invest in the Art / Science of reward and recognition combinations


4. Differentiation

  • Golden rule: Treat Different Customers Differently
  • Loyalty data can give you a rich understanding of the individual customer that allows you to treat them differently and relevantly
  • There is a customer expectation that you will personalise interactions with them –not one size fits all
  • Always remember the customer has a Head and a Heart


We are Ellipsis, Loyalty Consultant Experts. We help businesses thrive through solving complex customer problems. Please get in touch, we’d love to talk.


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