Drive Participation in Trade Loyalty through Targeted Communication

Broadly there are two different kinds of Trade Loyalty Programs in terms of processes. One kind is where the transaction data is tracked through an ERP system or equivalent. In this kind, there is no further activity required from the user apart from doing the transaction.

The second kind of programs are those where the user needs to record their purchases to earn points. The user trigger is the first step of these loyalty programs and it becomes very important to drive that as without interest from the users the program becomes dormant very quickly.

The key to drive participation in programs like these is to do targeted communication. Sending out blanket communication to everyone in the program would not increase the participation levels and is in fact counter productive as it will be perceived as spam by the users for whom the communication is irrelevant.

The way to make the communication more relevant is to start with the process flow and identify who are dropping out at which stage. For example, think of a program where the users need to download an app, register themselves and then upload invoices to earn points. In this case the dropouts may happen at the following stages.

• People who haven’t downloaded the app
• People who have downloaded the app but not registered themselves
• People who have registered but haven’t uploaded any invoice
• People who have uploaded invoice(s) but have stopped uploading

In this case the strategy and the communication for these 4 cases are very different from each other. Some of these cases need information or reminders to be passed on. Some of these cases need some amount of selling of the program. Some of these cases might need some additional incentive to nudge them to greater participation. Specifically, these 4 buckets can be handled in the following way.

• People who haven’t downloaded the app
  • Phone call to them explaining the program followed immediately by an app download link
  • Reiteration of the program benefits by the Sales executives and managers who meet the in person
• People who have downloaded the app but not registered themselves
  • Reminder messages for registration with brief benefits of the program
• People who have registered but haven’t uploaded any invoice
  • Welcome bonus incentive on uploading their first invoice
• People who have uploaded invoice(s) but have stopped uploading
  • Reminder messages after 30 days of no activity
  • Reminder phone calls after 45 days of no activity
  • Additional Welcome back bonus after 60 days of no activity
  • Lapsing of accrued points after 90 days of no activity with message

Only through looking at the process flow in detail can one formulate the required communication and strategy. By putting multiple communication platforms to use participation in a program can be driven optimally leading to success of the program.

If you want us to help you in running loyalty programs with emphasis on driving participation, please contact us through the form in this page and let us reach out to you.

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