Unless the rules of your promotions are very simple and easy to understand, it’s important to develop them in a professional, structured manner, no matter what exactly the incentive may be.
The business perspectiveFirst, you have to concentrate on your business needs in the context of marketing activities. You must define the goals you would like to achieve, choose a measuring method and estimate your expected revenue.
Appropriate organizationOnce you know what you want to achieve, focus on the organizational aspect. Understand what resources and approvals are required to launch the promotion. This includes promotion budget, responsibilities in the team, customer service procedures, and as appropriate, cooperation with external partners.
The target groupLoyalty program effectiveness is directly correlated with how personalized your marketing efforts are. You must choose a proper segment of customers based on all available data. This is a step brands tend to overlook and often do not put enough effort into it. By choosing an appropriate target group, you will be using your budget and resources far more efficiently. The target group of a loyalty promotion doesn’t have to consist solely of program members - it can also include potential members (if the program operator can reach this group).
Promotion mechanismMarketers should define promotion mechanisms in a way that allows them to reach the goals they previously defined. This requires selecting the days on which the promotion is active, and choosing the action trigger (such as the purchase of items, a visit in the store, the value of the basket or the time of the transaction).
IncentivesIn the fifth step, program managers must decide on the incentives, whether they be benefits, gifts, points or something else. Incentives are what encourage members to participate in the promotion. These benefits have to not only match with the target group’s expectations but also fit the estimated budget.
CommunicationEven the most attractive promotion will not work without proper communication. Now is the time for creativity and personalization. The marketing team should design a promotion-related communication campaign: choose the appropriate channels and timing and develop compelling messages.
Monitoring and response
Measuring and monitoring your promotions help you understand the return on investment (ROI) and track their effectiveness. By doing that, you can react and adjust the rules at any time.
It’s easy to fall into the routine of running promotions out of habit without detailed planning and monitoring. Following the above process will allow you to create promotions faster and more efficiently.
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