Lessons from Loyalty Programs

Two weeks ago, I went to DM Forum. First chance this year to get to this event…it has been running for more than 20 years and I must be one of the few that was there at the start and am delighted to support Frank Chamberlain of Action Words as he continues to roll out one great speaker after another. 

This time around it was Steve Baird - CMO of Virgin Velocity, speaking of the genesis of the loyalty program that now sits as one of the biggest in Australia with 10 million members. He was asked the question: “How do you build a loyalty program?” and offered the following very useful insights… 

It all starts with an investment in the team that will drive the technology and build the processes that engage the customer, so you will need to: 

Find your STARS

These will be the people in your team that will drive innovation and deliver exceptional experiences for your customers. 

Find your VOICE

The tone, manner and content of your messaging that delivers the essence of your brand to your customers. 

Be the PURPLE COW

With deference to the writings of Seth Godin, I like the simple concept of finding a uniqueness that you can own in the minds of your customers. Need to try and stand apart from your competitors. Finding this is not easy, but the journey is important because even the journey helps you in delivering a unique experience for your customers. 

Personalisation vs Segmentation

Must admit that I love the time that Dean spent speaking to the difference between these two concepts. The uniqueness of the experience cannot be delivered on mass, it needs to reflect the data that you hold about your customer. Being personal is not being “creepy” it is about respectfully recognising the relationship that your customer has with your brand. And, this is not achievable by “segmenting” your database, it only comes where you can identify the individual elements of each customer and deliver messaging that reflects that knowledge. 

Bravery Trumps Compliance

This concept must strike fear in the hearts of many marketers who have to run their ideas past “legal” before anything can happen. Dean delivered this simple message: “You must remember that you are braver than you believe and stronger than you seem”. Stirring words indeed, but not that easy. I have seen far too many campaigns that are stifled by risk aversion and committee group think. Compelling creative that stirs the customer out of complacency is rare, but worth the chase. 

Find your STARS

Nice to see this appear again and the clear recognition that technology can never replace passionate, emotional and engaged members of your team delivering outstanding work because they believe in the brand. Something that technology will never be able to do is to deliver the connection points to your customers that engage the mind as well as the wallets. 

Normally don’t get too excited about the loyalty space because I focus on customer acquisition. But when some simple truths are delivered it is good to share them. Also, thought that there was a lot to learn here for those of us that have to acquire a customer before we can make them loyal. 

My last thought is, if you can make a prospect or customer smile when they see your message, you will have come a long way towards gaining a new customer or retaining an existing one.