Loyalty programs can generate strong financial returns by engaging guests by creating powerful incentives that encourage an increase in the frequency of visits, spending, and advocacy.  But before you set out to develop a loyalty program that will help you improve your incentive program customer spending and visit frequency rate, you need to ask yourself several questions: How will the benefits offset the program costs? What costs and revenue do I include when calculating my return? Revenue More units bought More visits Promotions Costs Loyalty management technology Services of a loyalty program provider Product costs Reward costs Once you find the correct balance between your cost structure and your customer’s preferences, you can achieve success and improve upon your program’s return and only then will you be able to understand how to manage your program indicators, including the applicable costs and revenues. Understanding the indicators involved in the return aspect of your loyalty program ROI will assist you in creating a plan to maximize that return. A well-designed loyalty program will motivate customers to visit frequently and spend more with you during each visit. In addition to revenue generated from a core program, with the data collected, you will be […]

Read more