Mala Raj

Loyalty program design is as much a science as an art. Design principles demand that, once you have frozen your objectives and set priorities, you take steps to arrive at a value proposition.

A Value Proposition is a statement of intent. “Join my program because…..”. It needs to be long-term, compelling and differentiated from others in the market. It needs to reflect the BRAND. And it needs to be nuanced and fine-tuned for different segments within your member base.

Yes, it is important that the program stands for something that will resonate with the entire base. A common theme and purpose. Let’s say your value proposition is all about giving the member MORE. Something as simple as “THE MORE YOU SHOP, THE MORE YOU GET”.

Once you arrive at that, let’s not imagine that this will be brought to life in similar fashion for the entire member base. Far from it. You now need to LAYER your value proposition to add value to different segments.

At the very base level, MORE may simply mean getting points for shopping and redeeming them for rewards.

At the next level, with your middle tier or slightly more valuable members, you add value by layering the proposition with more hard benefits – like better earn rate, more reward choices – and soft benefits, services, more engagement and interaction opportunities.

At the highest level, your top tier or MVMs (Most Valuable Members) you would add on a layer of exclusivity – really special services, recognition, privileges, special events, access to curated offers etc.

At every level you are reflecting the main value proposition of MORE – but the WAY it comes to life is different. It recognises the customer segment and treats them accordingly.