"The Essential Loyalty Program Builder Checklist"

For businesses that understand the essential elements to achieve customer loyalty ("Critical Success Factors for Loyalty", Aug. 2002), the next step is to start looking at the design and operational aspects of a loyalty program. In this issue we have provided a handy checklist for new program operators as a starting point to begin making key decisions about your program. By brainstorming about these operational issues up front, Ernex can help new program operators get off to a great start and launch a successful loyalty program.

	Launch Strategy: Do you plan to offer your program to select members or publicly announce the launch of your program?
	Member Enrollment: How will members enroll in your program? Through an application form in store, via the web or through a call-center - each method has its own cost implications and processes to consider.
	Membership Fee: Do you plan to charge a membership fee? Is the value proposition strong enough to encourage customers to pay up-front for future benefits? Transaction frequency, type of industry, cost of membership and many other factors play an important role in this decision.
	Card Issuance: Will cards be personalized with member names? Do members receive a temporary card number? Does it make financial sense to personalize and mail cards out, or should cards be issued directly at the business?
	Tiered Program: Do more valuable or frequent members get upgraded to higher tiers (Gold, Platinum, etc.) with incremental benefits? Can the incremental costs and operational issues associated with tiers be avoided, by adjusting base elements of the program, such as points earning and redemption rates?
	Member Communication: How will you communicate program information, updates and promotions to members? Focus on the benefits of real-time receipt communication and opt-in email campaigns over traditional, more costly, methods such as direct mail and advertising.
	Reward Types: How do you plan to reward your customers? A credit against a purchase, gift certificates, merchandise or some other reward?
	Reward Delivery: How do you plan to fulfill your rewards? Focus on the benefits of redeeming points for in-store or onsite merchandise over other methods such as mailing gift certificates or maintaining a warehouse fulfillment center.
	Mining the Database: How do you plan to utilize the wealth of transaction and customer information collected from your program? Real-time promotions at the point-of-sale can allow you to conduct micro test campaigns, analyze, and move to a full campaign rollout - at significantly lower costs than traditional methods.

This is just a partial list of items to consider when launching a loyalty program. Stay focused on your long-term loyalty objectives and have fun designing your program! For more information on getting your program on the right track, contact Ernex at info@ernex.com.