Make Your Loyalty Program Great

Make Your Loyalty Program Great

Loyalty programs are now common within the Travel Industry. But most are not what you’d call great.

The magic of loyalty programs is to let customers get engaged. The more engaged they are, the more they get. It’s that easy.

But to get it right, you have to have clear answers to these questions.

It may sound complicated, but from the point of view of a developer what is key is clear answer to these five questions.

1. Why Are You Rewarding Your Customer?

This is the first and most important question. Is rewarding your customers really part of your bigger business goals? Or are you just doing it because, “everybody’s doing it?”

It it relates to your goals, you need to figure out what your customers need to do in order to earn points and how they can later exchange them for products.

2. When Will You Reward Them?

You might want to drive traffic to your site or customers to your services on a specific day. Maybe sales are low on July 4th, so you might want to assign more points on that date.

3. How Much Is a Reward Worth?

Define what your point or unit of measure is going to be worth. More importantly, you have to be clear on the exchange rate between your plan’s point to dollars or some other external currency.

Many older systems didn’t take this into consideration because they didn’t have to deal with external partners. May sound surprising, but it’s pretty common.

Once this is clear, rewards will be easier to arrange. For example, 20 points would be worth $200, and can be traded for a plane ticket or a car rental.

4. What Actions Will Be Rewarded?

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Is it on your best interest to promote standalone products or is it better to promote combos?

Maybe a hotel booking with car rental bundle is not getter as much traction as you’d like, so you might want to award more points when somebody picks it.

5. For How Long Are Rewards Available?

The life span of points is another key decision. This will allow you to know when and how the points can be redeemed.

Loyalty Is in the Details

From my personal experience as a developer I can tell you that attention to detail is at the core of developing any great loyalty program. When you are defining the rules you need to be extremely thorough so that your clients now the system you are creating works perfectly to their advantage.

If you have any questions send me an email at [email protected].

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