Developing a customer loyalty program
I am a teacher and a consumer that has come up with a customer loyalty program that I believe can be quite favorable to both corporations and consumers alike. However, I don't really know where to begin. Who do I pitch it to? What type of research should I come up with first? What type of research should I be doing? Could you give me a little direction to get started?

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Not to dampen your enthusiasm; but, to begin, you should probably review the components of your program against those already available in multiple industries. There are several companies whose sole business is the development of such programs. Even they tend to create me-too, cookie cutter programs which have little strategic differentiation or value but are merely glorified frequency programs... Also, look at what you've developed in the following contexts:

- Does your program offer customers anything of unique perceived value, that is some thing or things that provide genuine benefit sufficient to leverage loyalty behavior?
- Does your program have both tangible and intangible elements of value, i.e. not merely points and products?
- Does your program have mechanisms to generate in-depth profile data (which is the principal utility of these programs)?
- Does your program have sustainable elements, which can evolve as customer needs change?
- Does your program have an escape strategy that doesn't negatively impact your customers?

If you can answer "Yes" to all these questions, along with a portfolio of proof to back it up, the best advice is to approach one of the companies which package loyalty programs for its clients.

This was first published in June 2003