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Hope Is Not A (Loyalty) Strategy. Particularly Today.

By: Ray Chelstowski / Hilton Barbour

Certain phrases are so perfect in their composition and their message that they are often attributed to people because “that’s exactly what they’d say”.

Hope is not a strategy is one of those phrases. 

It’s been attributed to Vince Lombardi because, well…that’s exactly what he’d say about football. 

Also, to former New York Mayor Rudy Giuliani as part of his convention speech in 2008.

The truth is the origins of the phrase are murky, but its message is crystal clear.

You can’t “hope” that your strategy will work. 

You can’t “hope” your loyalty program will meet your key business objectives.

You can’t “hope” that consumers will flock to join, stay, and grow with your program.

Particularly, not in the current environment where organizations are launching loyalty programs with renewed vigor and consumers, buffeted by increasing inflationary pressures, are seeking some reprieve at the pump, at the mall and at the checkout counter.

A well-constructed and well-run loyalty program provides that strategy.

The benefits are clear.

Compared to non-members, loyalty members tend to spend more per store visit. This becomes even more important as gas prices rise and consumers look to streamline their shopping. So where should a brand begin their own loyalty audit? They should first examine how effectively they connect loyalty, customer communications, mobile technology, and data insights to build a holistic strategy that ensures they are continually delivering the type of experience consumers want, at every touchpoint. Without the proper connections, even the best strategies suffer, and profitability always increases when there’s a unified view of how effective promotions and campaigns have actually been. 

Next, brands should ask whether their programs are profitable? If its not profitable, its not working and your ability to fund incentives and maintain engagement will quickly diminish. Lastly, are your research, budget, and loyalty software aligned in a way that will support your business goals and customer strategy? From here brands can better structure loyalty program to perform daily and fit more squarely in their customers’ own unique journey. This involves setting achievable loyalty KPI’s that make it easier to measure ROI and truly understand the impact your loyalty program is having upon your business.

When it falls short, an approach of this kind allows for brands to be more nimble and reverse underperforming pieces of a loyalty program in the moment. Its all about continually engaging customers, meeting their own personal needs, increasing sales, expanding business, and developing real CLV.

Our SmartJourney methodology is one way in which Kognitiv can assist organizations looking to remove the “h-word” from their strategy. It combines a robust diagnostic with an insight-driven program construction that addresses the realities of your current program – or provides the blueprint for your new one.

In this video, our colleague Simon Nicoll provides more context about SmartJourney.

In addition, our collaborative commerce platform enables organizations to work directly together to access new audiences, pool resources and funds, and create unique offers that no single organization could muster on their own.

Working collaboratively, in a way that takes partnerships and loyalty to an entirely different level, is another way that Kognitiv can help remove the hopeful aspect of your loyalty efforts and create more surety for you.

Which is why we’re also a fan of this quote too.

“Success has many fathers, but failure is an orphan” - JFK.

ray.chelstowski@kognitiv.com

hilton.barbour@kognitiv.com


 


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