Customization is a hot topic in the loyalty industry today.
Do you use a one-size-fits-all loyalty solution, or do you use something that fits the needs of you and your customers?
We believe in the latter.
That’s why we build premium loyalty programs according to the specifications of our clients.
We do an enormous amount of work upfront to customize a solution specific to that brand because it can’t be a one-size-fits-all.
Since consumers are paying to become members of a premium loyalty program, it must be designed specifically for the brand to achieve its desired metrics.
At Clarus we use a proven methodology to build customized premium loyalty programs.
Let’s look at our process and the key areas we focus on when building a premium loyalty program.
Strategy and Alignment
This is paramount before any other aspect of the program is discussed.
Not only does every retailer have different needs on a company level, their customers have different needs as well.
A premium loyalty program needs to operate seamlessly and work for everyone – the retailer and its customers.
To understand these unique goals, it’s important that we meet the key stakeholders and get everyone on the same page.
To truly understand what success looks like for each program, we hold onsite workshops with retailers to define goals and metrics. We also identify functional areas that may be impacted by the program such as promotion, currency, and/or solutions options that may be deployed.
Brainstorming with all key stakeholders is critical to understand what important benefits and experiences might be impactful for the program.
We want to uncover which existing assets can be leveraged for the premium loyalty program.
Any potential opportunities, as well as constraints, are uncovered in this meeting. It gives our team a solid understanding of what we need to build to ensure a successful program.
Program Design and Validation
Now once we’re on the same page regarding what’s most important to the retailer, we bring everything back to the team.
This is where we develop a framework that presents the recommended strategic direction for the program.
What benefits make the most sense? What will the user experience be like for members? How will we help the retailer get customers to join?
We also work with our full-service Creative team to design digital and printed materials to help bring the program to life.
This helps clients understand how their brand can be wrapped around a program like this.
Learn more about how a customized premium loyalty program will benefit both you and your customers.
Financial Modeling
We design a program benefits package and prepare the financial modeling, which contains projections for the client.
This area focuses on the economic structure of our relationship with each client where we offer various financial scenarios based on our experience.
We also develop the pertinent thought leadership materials and run sensitivity models for each client. We discuss things like incremental revenue/margin and overall value proposition.
The other piece of our financial modeling is our revenue share model, which is truly unique in the loyalty industry. This simple pricing model essentially takes all the risk off the retailer.
In this model, a loyalty provider like Clarus simply makes its money from a percentage of the program membership fees that customers pay.
There are zero upfront costs to the retailer.
We don’t make money until our clients make money.
Marketing and Communications
For any loyalty program to be successful, your customers have to be excited about it.
And for brick-and-mortar retailers, that starts with your in-store associates.
Unlike a free program that has little barrier to entry, a premium loyalty program must be sold to customers. They must understand the value proposition, the benefits offered, and look forward to signing up.
To assist our retail partners with this process, we develop an actionable and comprehensive marketing and communications plan.
This plan includes acquisition methods, engagement strategies, retention strategies, re-activation strategies, training for store associates and customers service agents, a compensation plan, and incentive contests.
Read more about the importance of training your in-store associates on your loyalty program.
Technology Assessment
This is a crucial area to assess the technology needs of our retail partners and this is different for each client.
That’s why we use a platform agnostic approach when working with retail partners.
Our Momentum platform can integrate with any system our client is using. We realize that every client is different, so we developed our platform with that in mind.
We work with every partner to identify the technology requirements and develop a solution specific to their needs.
This includes identifying data sources and integration points and building an overall road map for program development and milestones.
A Highly Customized Approach to Loyalty
Differentiation is so critical in today’s loyalty industry.
As a result, we use a highly customized approach specific to the client, the demographics of the consumer, and the technology base.
Clarus works in lockstep with each client from Day 1 of our journey together, through the program launch, and after as we always look to optimize to enhance the value of the premium loyalty program.
We build premium loyalty programs to each client’s specifications because that is the best and only way to accommodate their needs. We are flexible and adapt according to the client’s wishes.
If you are looking for a premium loyalty provider, wouldn’t you want to partner with one that will build a program specific to you and your customers?
Learn more about why you should partner with a premium loyalty company.
Michael Iannucci
Michael Iannucci is our Executive Vice President, Business Development & Client Management. He has over 15 years of experience at top loyalty marketing and subscription commerce companies, where he held leadership positions in sales, business development, and account management.
