In this illuminating episode of the Loyalty program builders podcast, we investigate the nuances of the first 90 days following the launch of a loyalty program. As launching a loyalty program is a hectic time, the first three months post-launch are crucial in determining the program’s success.
With a plethora of opportunities and challenges in the loyalty landscape, our host Irek deep dives into the strategies, missteps, and success stories that define this crucial period with Charlie Hills – a seasoned loyalty professional with global experience.
The initial days of a loyalty program are a unique blend of excitement, uncertainty, treasured victories, and steep learning curves. From this episode, the following key takeaways emerge about this pivotal phase:
Drawing from Charlie's extensive experience and insights, here are three pivotal pieces of advice to ensure the smooth running of the loyalty program post-launch:
Here are several profound quotes from Charlie that capture the essence of her advice:
“The unexpected happens in loyalty. You can issue rewards that you think are fantastic and people won’t like them. The first months are about holding your nerve through those squeaky bum times and keeping sight of the bigger picture – what you're trying to achieve.”
"It's essential to understand your audience, identify what strategies resonate, and always take a moment to celebrate your milestones."
"Remember to demonstrate the value of loyalty programs through effective KPI reporting."
"From my experience with VeryMe rewards for Vodafone, always tailor interactions to answer 'What's in it for the internal stakeholders?' – how does what you're doing help them achieve their goals bigger and better?"
Charlie Hills stands as a beacon in the world of customer loyalty. As the Chief Strategy Officer at Mando-Connect, Charlie helms a multi-award-winning smart partnerships and rewards agency. Charlie is also the engaging voice behind the "Let's Talk Loyalty" podcast, a respected member of The Loyalty Academy Faculty, and the Vice Chair of The Prize and Loyalty Community at The Institute of Promotional Marketing.
And that’s just to name a few of her recent endeavors. With 20+ years of experience in the industry, Charlie has not only contributed her expertise but has also been a driving force behind truly global loyalty projects. From McDonald’s, Shell, and Vodafone to Lidl and BMW, Charlie's extensive list of achievements is a testament to her expertise in the loyalty domain.
The following transcript has been edited for clarity.
Irek: Hi Charlie, great to have you on the podcast.
Charlie Hills: Thank you for having me. I'm delighted to be here.
Irek: Brilliant! Today, we are going to talk about the first 90 days after the launch of the loyalty program. Can you give us a brief overview of what happens during those initial days?
Charlie Hills: Certainly. Initially, there's chaos and panic, lots of running around. But this time is also combined with moments of elation. It's quite the roller coaster.
Creating a program is an intense process. Brands invest significant effort, possibly even years, leading up to the launch day. But the real excitement and challenges come in the first 90 days.
Reflecting on my experiences, especially with brands like Vodafone, Lidl, and BMW, two consistent elements emerge:
Irek: Thank you, Charlie. It sounds like these insights can apply to many major projects, emphasizing the importance of learning. Could you elaborate on the learning loops during the first 90 days?
Charlie Hills: Absolutely. Iterative learning is fundamental. Assess, improve, review, and learn continuously. The approach and focus vary based on the brand, its sector, and the program's objectives.
For instance:
Irek: That's insightful. Can we delve into the significant opportunities presented within those initial 90 days?
Charlie Hills: The foremost opportunity is celebration. Recognize the achievement of launching something potentially revolutionary for your customers. After the festivities, the most significant opportunity lies in customer engagement. Consider transactional metrics and attitudinal indicators.
Furthermore, loyalty programs can profoundly impact brand perception. I recall a conference where the Tesco Clubcard was discussed. They've brilliantly harnessed their loyalty program to reinforce their core brand values.
In essence, celebrate the achievement and then dream big. Consider how your loyalty program can elevate the overarching brand, creating stronger customer relationships.
Irek: Absolutely, celebrating is vital. We often get lost in operations and optimizations post-launch and forget to relish the accomplishment. Emphasizing brand enhancement is a great takeaway too. Can we also discuss the primary challenges?
Charlie Hills: In Britain, there's a phrase known as "squeaky bum time", which Ryan Reynolds recently popularized with his Wrexham partnership. It essentially means facing tense and uncertain situations. In the loyalty business, unpredictable outcomes can often arise.
For instance, a reward you believe to be fantastic may not be well-received by your target audience. The key is to stay focused on the broader picture and remain agile, adapting to real-time feedback and situations.
Loyalty programs can be likened to launching a new business within an existing one. It's not just about the customer. It's also about managing various stakeholders – from internal teams like IT, commercial, and the brand team, to external ones like platform providers and reward partners. The scale of such programs can often be overwhelming. One of the strategies to navigate this challenge is prioritization. Distilling tasks into a top three list or focusing on urgent versus important tasks can be beneficial.
Irek: I believe real-world case studies offer great insights. Could you share some?
Charlie Hills: Certainly. Launching and evolving a loyalty program can be thrilling. It's fascinating to observe a program transition from an idea to an award-winning initiative. One such example is BMW Inside Edge. It's a loyalty program tailored for BMW company car drivers to enhance their brand experience.
Another case study close to my heart is Lidl Plus, a grocery loyalty program that steered away from the conventional points-based model. Lidl masterfully adapted their approach based on insights from various markets.
Lastly, Robert Dias, a British home goods store, recently introduced 'My Dias', focusing on user acquisition with a strong offer - you get 200 points instantly on sign up. It's a really good user journey, really good point of sale presence in all their retail sites and on their online stores.
Irek: I value the approach of learning from both successes and failures.
Charlie Hills: Absolutely. Cautionary tales, where hypotheses are proven wrong, are as valuable as the successful ones. Learning what works and what doesn't, especially from a global perspective, can be enlightening. For instance, Lidl's decision to skip the points system was possibly an outcome of analyzing other grocery programs and identifying what wouldn't fit their model.
Another top tip would therefore be to look out for what's good on the market and would work for your business, but also to look out for what wouldn’t work for you and think about why. Some of the greatest ideas can come from caution.
Irek: Given your expertise in retail, any quick tips for those in the sector?
Charlie Hills: Retail is diverse, from online platforms to brick-and-mortar stores across various categories. However, some fundamentals remain. Ensure your program works seamlessly across channels – online and in-store. Frontline staff, like customer service teams, should be well-versed with the program to guide customers during the onboarding phase. Since loyal customers are likely to be the first adopters, it's vital for the program to be flawless right from the start.
Irek: Thank you, Charlie. Any final thoughts for our listeners?
Charlie Hills: Definitely, Irek. Reflecting on the first 90 days, I believe I've touched upon the critical points. It's essential to understand your audience, identify what strategies resonate, and always take a moment to celebrate your milestones. It's a wonderful feeling to see what you've brought to life. Equally crucial is the importance of focusing on the significant KPIs. Loyalty programs are a substantial commitment, and it's paramount to demonstrate their value to internal stakeholders promptly.
Furthermore – and forgive my enthusiasm here, I am a bit of a loyalty nerd – it's about the presentation. The significance of a comprehensive dashboard, of visually representing data, cannot be understated. Such transparency ensures everyone in the organization understands the program's impact and its benefits. One of the pivotal lessons from my time working on the VeryMe rewards for Vodafone was the importance of tailoring internal stakeholder interactions. It's always beneficial to answer the "What's in it for them?" question. Ensure you're always highlighting how your work can further their objectives.
Irek: Great insights, Charlie. I'll keep that in mind for our podcast project with Open Loyalty. Thanks for sharing.
Charlie Hills: It's been a true pleasure, Irek. If listeners wish to delve deeper or have queries, please feel free to reach out. My contact details are available on the podcast and LinkedIn. Always happy to help.
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