Investments in loyalty programs are enormous. Launching programs, setting up systems and administration as well as the management focus required involve daunting figures. The strategy must be sound, and meet key criteria. Loyalty programs do not exist in a vacuum. When designing a program consider what the organisation can do profitably and differentially.
Loyalty is about working the results of that implementation.
The elements that determine a program's value are monetary value, choice of redemption options, aspirational value, relevance and convenience. The psychology of rewards has as much to do with loyalty as economics. If the organisation is not able to meet all the elements of value, partnering with other companies can be a valuable option. In a network each company can bring different values to the table, where the whole will be greater than the sum of the parts. For the investment in loyalty programs to pay off, companies must keep focused on the principles of value sharing.