Best CRM
CRM search»Retail CRM»How to Create a Loyalty Program

 Chuck Schaeffer How to Create a Retail Loyalty Program That Works


10 Step Customer Loyalty Program Framework

  1. Begin Technology with CRM. In order to achieve a single and complete view of each customer relationship, it’s essential that a loyalty program be tightly integrated with your customer system of record, which for most retailers and service organizations will be the CRM system. CRM software manages the customer profile record which includes customer preferences, purchase history, marketing outreach and response, customer service history, social profile attributes and loyalty program activities. The loyalty application, as well as other sources of customer information, should append and enrich the CRM customer record. This central customer data repository can then be used to deliver more relevant, personalized and contextual engagement and offers – which in turn increases up-sell, cross-sell, loyalty participation, customer share and Customer Lifetime Value (CLV).

  2. Integrate Enterprise Systems. In order to promote a single customer system of record, avoid staged data and manual rekeying, automate workflow processes across departments and channels, and achieve real-time reporting, the loyalty system should be integrated with several other business systems, including:

  • POS systems – for purchase transactions that update member loyalty programs and even permit loyalty enrollment and redemption at the POS
  • CRM software – integration to CRM account, contact, opportunity, campaign and case records
  • Marketing automation software – to create segmented and personalized campaigns for highly relevant offers based on deep member criterion as well as track campaign budgets and payback
  • ERP systems – especially customer records, inventory items, price lists and cash receipts processing (for flexible redemption and claims handling)
  • GIS applications – geographic information systems are used by many retailers for targeting customers based on specific location or proximity to a store
  1. Apply Loyalty Marketing. For most retailers, it’s a mistake to try to make your loyalty program perform loyalty marketing campaigns as they are just not equipped to do this well. Instead, integration with a marketing automation system will leverage customer activity history (from the CRM system), purchase history (from the accounting or ERP system) and each member’s online behaviors (from the marketing automation software) in order to deliver much more relevant, personalized, contextual and even real-time messaging and offers.

    The marketing automation software will also track each consumer's digital footprints (response rates, conversions and engagement) with every campaign interaction in order to know what works and doesn’t work and modify future campaigns based on that learning. Marketing automation software also offers advanced functionality such as trigger campaigns (which deliver the highest conversion yields of any campaign type), next-best-offer campaigns (which also yield particularly high conversions) and in combination with the CRM system identifies purchase patterns and cross-shopping propensities which will aid up-sell and cross-sell campaigns.

Next - Customer Loyalty 10 Step Framework continued >>

Customer Loyalty ProgramsCustomer Loyalty FrameworkLoyalty ProgramLoyalty SoftwareLoyalty CustomerCustomer Loyalty Risks




Share This Article



It is the purpose of a firm to create satisfied customers."

—Peter Drucker



Related Articles




Follow Us

crm search

Home   |  CRM  |  Sales  |  Marketing  |  Service  |  Call Centers  |  Channels  |  Blog