So, think: Does the loyalty provider offer convenience and immediacy to the consumer? Know Before You Go
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Options like converting points into cash, using points for purchases, or offering discounted or free services or merchandise allow consumers to engage with the loyalty program, encouraging them to spend more. Are the reward offerings relevant and how much flexibility is available? Sure the consumer can rack up points, but is the ROI worth it? What kind of programs are available? Overall functionality must also be considered as part of optimal decision-making. “When evaluating vendors, ask about their strategy of integrating their product or service into your existing enterprise, both from a technology and resources standpoint,” says Andy Floresca, Managing Director, Loyalty Methods. Loyalty Methods understands how these types of systems can cause apprehension when deciding to re-platform.
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In some cases, companies have invested in a software package approaching end-of-life and have become cumbersome to manage. Many loyalty systems can be heavily integrated into an organization’s other legacy systems. Integration with legacy systems is another issue. Your program members will ask “Why keep investing in a program,” to have it just disappear without getting a chance to cash out on your rewards? These are all questions that will either destroy or enhance the relationship with the consumer. What kind of data is shared with them (or the company)?.Will consumers be affected during the transition?.Will points get lost in the conversion process?.Depending on what you maintain, the level of detail, it can be an enormous task to undertake. Rip-and-replace seems to be the typical approach from solutions providers when converting to a new platform and that puts valuable customer data in jeopardy.ĭata these days can be overwhelming when it comes to data migration. There’s also the data preservation and accessibility factor. Adding a major project into the mix like a whole new system upgrade? Let’s just say you’re not going to be IT’s favorite person. There are ongoing projects, operational emergencies, and the customary holiday “freeze” that often takes place around Thanksgiving through New Year. Although there is a clear visible budget in dollars to spend, there is also opportunity cost through the diversion of human resources.įor example, the dreaded IT “backlog.” There always seems to be a large queue of never-ending tasks to be completed in IT and there’s never a good time to break the line or make an exception. Cost is usually top of mind for brands in the market for loyalty technology, but there is more than the explicit price tag to consider.
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