How SPV is your loyalty program?
SPV = Simple. Personal. Valuable.
If you have a program (or are thinking of developing one), then please run a diagnosis over your program's structure and benefits with these three letters in mind = SPV.
With the knowledge that the 2 critical elements to loyalty program success are that they must be (1) profitable to the business and (2) meaningful to the member, below are some of questions to consider on how to make the program more meaningful to your members.
Simple =
1. Easy to understand...3 second rule
2. Easy to join (no hurdles eg min spend or pay to join - although these are options if you want quality members)
3. Easy to provide minimum data (asking for too much too soon)
4. Easy to earn rewards/benefits/points (the main reason for defection from programs)
5. Easy to redeem for rewards
6. Easy to interact with across all channels (online, mobile, in-store)
Personal =
1. Rewards are tailored and relevant to members
2. Communications are personalised to buying behaviour
3. Members are made to feel special and/ or recognised for their loyalty
Valuable =
1. A variety of ways to earn rewards from transacting to interacting?
2. Members can earn rewards over time and immediately?
3. Benefits expire? (if they do...the value declines for the member)
4. A mix of financial and experience rewards including the old faithful = surprise and delight?
5. Members enjoy being part of the program?
6. Is the program worth their loyalty to your business?
There is a structured and in-depth diagnosis (as per image in this post) to scale and score the above and then to identify actions to improve. If you want a copy please email me at adam@directivity.com.au
Once you review your program...then ask your members their point of view on the same criteria and see how aligned (or not) you are.
Otherwise the above will certainly give you a sense of how meaningful your program is to your members
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