‘How much will this loyalty project cost?’ Unfortunately, I never have the magic wand to conjure up an immediate response. There are so many critical components to creating a robust business case?” – Amanda Cromhout
Business case & modelling
There are three main components to beginning the commercial evaluation process.
Programme uplift from customer behavioural change
Upfront (capitalised) expenses
Ongoing (operational) expenses
The expense lines of the business case are somewhat easier to predict than the commercial uplift expected from a loyalty programme.
The cost of the programme build obviously depends on many factors and, in particular, the decision regarding in-house IT solution or external technical vendor to drive the loyalty programme capability.
For ongoing programme costs, we must place greater emphasis on regular member engagement, people costs and of course all elements of the rewards offering of the loyalty programme.
Truth assists its clients in creating the loyalty business case either from scratch or working with existing commercial models and inputting loyalty scenarios.
“Amanda and her team, at Truth, have not only created the awareness of this key strategic lever but provided a very practical approach to delivering a workable solution.”
The unique challenge faced by retail businesses today requires a significant understanding of customer behaviour, value, and trends. This cannot be achieved without an organisational commitment to first gathering customer purchasing behaviour, second creating the capability to effectively analyse and dissect the data, and then develop value propositions for each customer segment.
Amanda and her team, at Truth, have not only created the awareness of this key strategic lever but provided a very practical approach to delivering a workable solution. Much of the value add that Truth has its foundation in extensive local and international experience in this arena and their current list of customers in the retail sector is testament to this.
Andrew Latimer, Former Commercial Executive, Builders.
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