Executives who are considering loyalty programs often ask us, “Should I run a points or product program?”
This is an important question and will undoubtedly shape the success of your program. However, there’s a better place to start the loyalty conversation: with a thorough discussion of this equation:
The number of people enrolled in your program, the number of active people in your program, the change in spend your program compels, and the cost of the rewards are the key drivers for producing a positive ROI with your loyalty strategy.
To learn more about how each of these drivers impact the program you choose, join me for a 30-minute webinar replay (LINK TO WEBINAR). During the session, I’ll take you on an exploration through core programs, layered programs, and loyalty promotions. You’ll gain an understanding of what’s important to your chain.
As for the answer to that age-old points or product conundrum—consider this simple question: When you think about your specific brand, is there a single product that comes to mind?
Reward programs are effective marketing initiatives that deliver results — from making a positive financial impact to building continuous and lasting guest loyalty for the brand. Program managers leverage program data to maximize visits and spend, predict future guest behavior, and create a unique competitive advantage that brings value to the chain. Like many major initiatives in an organization, I am sure the loyalty program is getting a lot of attention not only from your guests but from the executive, operations, finance, and even IT teams. The teams should be excited about the company’s investment AND most of them are behind the project. But, I think we all know that there are likely some people who are looking for every opportunity to kill the project. Even the “multi-billion dollar Marriott Rewards program” had people trying to kill the brand’s reward program before it got off the ground. Roger Dow, the creator of the Marriott Rewards program had peers trying to kill the idea a hundred times over during the first two years of the program. They called it a “high-cost, ineffective program.” […]
Visualizing data helps people make decisions. Two years ago, Paytronix discovered Pentaho – the world’s leader in providing environments for end users to discover data insights in a self-service software set. A multi-tenant solution, Pentaho is employed within the Paytronix software to help users visualize and analyze loyalty and gift card data. Users can log in to the merchant interface and use many dashboards and analyzers that are offered under our core product. In addition, our Data Insights team produces further dashboards and analyzers for clients to take a deeper dive into specific loyalty program questions such as movement between guest segments, fraud, and more.
Over the years, Pentaho has developed an appreciation for Paytronix’s innovative application of its product and asked us to share our experiences with its clients and prospects at its first-annual User Conference, PentahoWorld.
If you think you know how to uniformly account for discounted gift card sales or the costs associated with all of your sales channels, think again.
According to new rules from US GAAP and IFRS, the nature of the discount is changing – some of your expenses could be considered a reduction in revenue. Further, the question of when to take the expense and who funds it (your corporate office? Franchisees?) are of central importance.