Design your Loyalty program in 2 weeks.Learn how to build an effective program that attracts and retains customers, generates more revenue and delivers loyalty as the outcome.

Contents.

WEEK 1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

How to use this guide? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5

What can a Loyalty Program do for me? . . . . . . . . . . . . . . . . . . . 6

How should I structure my Loyalty Program? . . . . . . . . . . . . . . . 91 . Basic Rewards Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 2 . Tiered Program with status-based rewards . . . . . . . . . . . . . . . . . 11 3 . Personalization Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 4 . Engagement-first Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 5 . Premium Loyalty Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . 14

What to consider when creating a loyalty scheme? . . . . . . . . . . . 17The desire for personalization is universal . . . . . . . . . . . . . . . . . . . 18 Generational differences are extreme . . . . . . . . . . . . . . . . . . . . . . 18 Men and women want to be treated differently . . . . . . . . . . . . . . . 19 Differences in preferences across regions . . . . . . . . . . . . . . . . . . . 19

What behaviors should be rewarded? . . . . . . . . . . . . . . . . . . . . 21Find behaviors worth rewarding . . . . . . . . . . . . . . . . . . . . . . . . . . 22 Let’s do the math . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23 The intangible benefit of rewarding small behaviors . . . . . . . . . . . . 23

How to reward the desired behaviors? . . . . . . . . . . . . . . . . . . . . 27

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DAY 2

DAY 3

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DAY 5

WEEK 2

How to create a category-leading Loyalty Program? . . . . . . . . . . 31Loyalty in Luxury - Do’s and Don’ts . . . . . . . . . . . . . . . . . . . . . . . . 32 Loyalty in Retail - Do’s and Don’ts . . . . . . . . . . . . . . . . . . . . . . . . . 33 Loyalty in Fashion - Do’s and Don’ts . . . . . . . . . . . . . . . . . . . . . . .34

How to check if the Program is financially sound? . . . . . . . . . . . .36

How to assess the Program’s effectiveness? . . . . . . . . . . . . . . . 40Extend your projections . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Refine your figures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Subtract the costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .42 Pull out the top success metrics . . . . . . . . . . . . . . . . . . . . . . . . . .43 Schedule monthly reviews . . . . . . . . . . . . . . . . . . . . . . . . . . . . .43

How to bring the Program to life? . . . . . . . . . . . . . . . . . . . . . . .45Choose a great name your Program . . . . . . . . . . . . . . . . . . . . . . .45 Help customers visualize the offer . . . . . . . . . . . . . . . . . . . . . . . .48 Create a launch plan . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .48

How to embed the scheme within the organization? . . . . . . . . . . 51Elect or hire a Loyalty Manager . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Who and how to onboard . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 Integrate with other marketing activities . . . . . . . . . . . . . . . . . . . .53

It’s your turn now! . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55

Manage your Loyalty Programs with Splio . . . . . . . . . . . . . . . . . .56

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DAY 4

DAY 5

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Introduction.

What type of loyalty and program today?

It’s a broad question that marketers are trying to answer . A lot of brands are calling into question the current format of their Loyalty Programs to adapt to changing marketing conditions, integrating new digital channels, mobile, latest innovations and rethinking their plans for a new type of consumer loyalty .

Consumers are continually changing over time . Millennials will represent 75% of the global population by 2021 . They are today’s customers and with them entire new generations with their own buying habits are coming up . Immediacy, digitalization, speed, simplicity but also trust, transparency, on and offline engagement are values and habits that matter today for your Loyalty Program .

Loyalty is first an experience offered by a brand that brings clients into a universe they like and where they want to spend time . Loyalty Programs need to move in this direction by combining client experience, new consumer habits, and innovation .

Loyalty Programs also must answer to an economic model that uses loyalty strategy as a basis to guide the growth of a brand . A brand must also make sure that its Loyalty Program is profitable .

Thanks for reading this guide and congratulations on taking the first step towards helping your organization strengthen its performance through Loyalty Marketing . We were inspired by brands from all around the world to illustrate our points with Loyalty Program examples that have already demonstrated their success .

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How to use this guide?

Whether you want to develop or rethink your Loyalty Program, this guide will help you:

For best results, we suggest spending 30 minutes working through this guide every day for the next two weeks . This should give you enough time to understand the concepts and apply the learnings to your own organization by completing the set exercises .

By the end of the process, you will have the first draft of your Loyalty Program completed and ready to be shared within your organization .

Book the daily 30-minute sections in your diary now and let’s get going!

1. Understandthe reasons for having a Loyalty Program in the first place.

2. Make senseof the different formats and structure available to you.

3. Design the Programconsidering financial considerations, branding, and launch activities.

!

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What can a Loyalty Program do for me?

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The concept of rewarding loyalty has been around for decades and has inspired a large set of case studies across different geographies, organization sizes, and product categories .

This means that today we have detailed knowledge of what kind of impact a Loyalty Program can have on business performance . Here is the most important conclusion .

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Week 1

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This is achieved by making the most of the existing buyers and consistently encouraging them to come back . When they do so, they are 9x easier to convert, and their average spend is 3-5x higher than that of a first-time buyer . Over the years, this adds up to them spending 40% more, compared to the scenario in which they had not enrolled in a Loyalty Program .

With time, the business can expect around 41% of its revenue to come from repeat customers . This gives the company an opportunity to be much more strategic about its marketing spend .

Focus on loyalty and save on your marketing spend, then reinvest it to provide a better customer experience . Can you imagine being able to cut your media spend by 10% and maintain revenue targets? This can happen if you boost retention by as little as 2% .

A loyalty scheme can improve your acquisition tactics too . In some cases, the expectation of loyalty perks can be the reason for a first-time purchase . Moreover, it will be easier for new customers to find you, as those who are part of the loyalty scheme double their rate of referrals and branded social media shares .

Retaining an existing customer is 7 times cheaper than acquiring new one .

What do consumers say ?

81%are more likely to continue doing business with brands that offer loyalty programs .

66%spend more to maximize loyalty points .

50%spend more to achieve a higher loyalty tier .

On average, Loyalty Programs lead to a 28% uplift in sales year on year.

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Finally, creating a loyalty program allows the brand to quickly and effectively grow its understanding of the customer . Enrollment forms, tracked omnichannel purchase history, redeemed rewards, responsiveness to special offers, as well as product reviews and social engagement - together, they create an unbeatable and ever-growing level of customer insight . Even in the early days of launching a loyalty scheme, this type of database allows for more thorough segmentation of the customer and the delivery of more personalized offers and communications . Over time, as the size of the customer database grows, it can support not only the development of new marketing tactics, but in some cases even the longer-term business strategy of the brand .

All in all, a Loyalty Program is proven to boost your sales and cut your costs - your audience is expecting to be rewarded for their custom and is ready to engage . The only catch is that to benefit from all of this, you need to get started right now .

Standing out is getting more competitive by the day - by now 47% of global B2C marketers already have loyalty solutions in place . The good news is that the rest spend less than 19% of their budget on customer retention, which means that you won’t have to shift your budget too much to catch up .

Review the business effects of implementing a Loyalty Program and answer the following questions:

1. What is the most pressing problem your business is facing? Is it awareness? Conversion? Sales figures? Marketing costs?

2. How could creating a Loyalty Program help address these issues? To what extent?3. What would the updated metrics be, were you to implement a Loyalty Program?

Time to take action !

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How should I structure my Loyalty Program?

Since loyalty schemes have been around for a long time, they have gone through a few stages of evolution . Today, we will explore the five main types of Programs, the pros, and cons of each one, and see

how they can work in the real world . By the end of this section, you will have all the knowledge to help you decide which Program structure is the best fit for your business .

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Week 1

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1. Basic Rewards Programs

Let’s start with the basic rewards Program, in which the customer earns points based on transaction numbers or value and can redeem them on selected products or benefits according to a pre-prescribed set of rules . This type of Program is popular because it’s so simple to create and run .

Unfortunately, this also means that for some product categories, a customer is likely to be part of multiple Programs at the same time . In order to stand out, you need to either innovate with the kind of rewards you are offering or beat your competitors on the value of rewards given out . Let’s look at an example .

7-Eleven, an American chain of conve-nience stories runs a Loyalty Program called 7Rewards . It enables customers to earn points for product purchases and redeem them against other products in the store . 7Rewards is clear that as much as 80% of its product range, including the bestsellers, is available for redemption .

This provides customers with exceptional value for money and enables them to decide whether they want to treat themselves to extra products or subsidize their daily shop . As of 2018, 12 million customers were enrolled in the scheme, according to 7-Eleven Corporate .

case study

7-Eleven

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2. Tiered Programs with status-based rewards

The second type of Loyalty Program is a tiered structure with status-based rewards . Just like in the basic rewards Program, the customer can earn points for selected purchases or activities, but the remuneration is more complex . One can redeem points against rewards but is also encouraged to keep spending in order to obtain a higher status with bigger privileges . This can be very effective for the retailer, as most customers will stay at the lower tier, in which providing rewards is very cost-effective .

The challenge is to ensure that the customers are still interested in progressing through the Program and feel able to fulfill the conditions for the next status level . In order to strike this balance, the business might need to test the scheme with a small sample and go through a few rounds of iterations .

case study

Sephora

Sephora is an LVMH-owned international chain of personal care stores . Its Worldwide Loyalty Program called VIB Rouge & Beauty Insider is so popular that 80% of the company’s transactions are made by its members.

This was the figure reported by Forbes in 2014, and the Program has only grown in strength since . Today the 3-tier scheme rewards shoppers with free beauty classes, monthly gifts, custom makeovers, and exclusive events .

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3. Personalization Programs

It was only a matter of time until all the data collected through reward Programs were used to deliver the most personalized experience possible for each customer . This type of Program is primarily focused on data capture across all touch points to ensure individually relevant offers are served both online and in-store .

The Program may or may not be outwardly combined with the tiered approach but will naturally result in the biggest spenders revealing the most data and therefore getting the best service . The benefit of this approach is that the business can be certain it is allocating its largest efforts towards high-spending customers . The disadvantage is that customers may be put off by the idea that they need to prove themselves first to receive personal treatment .

Burberry, a British luxury fashion house, has mastered personalization so well that its customers are now 50% more likely to buy again, compared to the time before the approach was introduced .

Forbes has extensively covered the industry-leading investment by Burberry into personalized customer management programs .

The company was among the first to track customer information, social media activity and purchase history online and in-store, in order to deliver relevant buying suggestions .

case study

Burberry

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4. Engagement-first Programs

This is the most investment-heavy and sophisticated type of loyalty program, which is often used by brands who are already leaders in their respective product category . That said, smaller businesses should explore this option as well, because creating this type of program can help make the brand a category leader in the prospective customer’s mind .

The trick is to focus on identifying customer needs and start delivering on them even before mentioning the product that can help solve them . While building this out, view all the engagement activity as a way to qualify the customer ahead of purchase, e .g . give free access to online fitness classes before selling workout gear, deliver lessons in managing one’s budget before offering a savings account . More sophisticated marketers can even evaluate how engaged the customer was with their content to adjust the kind of product they should serve and what type of offer will resonate most .

These types of programs focus on the engagement component of loyalty and look to identify ambassadors to their brand by allocating points, rewards and VIP access for activities that the consumers perform promoting the brand e .g . Facebook page like, product review, referrals, consistent readers of their emails/blogs, etc .

Nike, a Top 3 global athletic brand has used its digital channels to launch the new Nike Zoom Fly trainers in 2017 . The marketing activity invited customers to attempt to run a sub-25-minute 5K through the Nike+ app . Those that were able to do so were awarded early access to a pair of trainers, creating a sense of scarcity and further justifying the premium price of the product .

This non-monetary incentive has paid off, generating disproportional word of mouth in the running community and stimulating demand . As of February 2018, Nike maintains its global leadership position in sneaker sales, according to Business Insider .

case study

Nike

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5. Premium Loyalty Programs

This is an emerging trend in loyalty, a format in which consumers agree to pay a fee to access better deals and enhanced services . So far, this innovation is most popular among 25-34-year-olds, with 77% of them claiming they would be happy to sign up . Large-scale retailers are best positioned to capitalize on this, with Amazon Prime, ASOS Premier, and Barnes & Noble being the early adopters . This approach should not be considered by those new to loyalty . Instead, it should be seen as an opportunity to convert one’s Loyalty Program into a revenue stream in the long term .

Those who decide to go for a premium loyalty program will expect that charging a fee upfront will help generate ROI faster, but there are other advantages too . By offering customers great value without needing to wait for a coupon or a reward, premium loyalty schemes also bring forward standalone transactions . On top of this, the brand is more likely to become part of the customer’s everyday lifestyle, since paying a membership fee creates a sunk cost and the need to ‘break even’ on this investment .

On the other hand, a premium loyalty program can come with a set of significant limitations :

First of all, premium loyalty schemes will only ever be attractive to returning customers and can leave the rest feeling left out, forgotten, and misunderstood by the brand .

They also come with the pressure of having to get the offer right from the start, because customers are likely to push back on future changes to the deal they have already paid for .

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Yoga and workout gear brand Lululemon is testing a loyalty program that charges members $128 a year for a pair of pants, free expedited shipping and access to workout classes and special event . The brand is venturing into a community-building customer retention strategy, in a move to answer the surge in online beauty and grooming subscription-based boxes . The pants actually carry an emblem that’s unique to the program and helps members spot one another in yoga and workout classes, making it easier to spark a conversation and meet new people, Response has been very positive on the Canada pilot: Lululemon CEO even told analysts the brand is considering raising the fee, and will expand the program to other markets .

Facing a very fierce domestic competition, Chinese e-commerce giant Alibaba has launched a tiered premium loyalty program that is packaging an ever increasing number of services and perks: discounts and gifts, video and music streaming platform membership, movie tickets, and cross benefits with an increasing number of brands such as Mariott hotels . It provides the double benefit of further securing Alibaba’s e-commerce dominance in China and raising awareness of other businesses it owns, recruiting massive numbers of new customers to them without to ever leave the Alibaba platform .

Unlike Amazon Prime, the pricing is rewarding the most active users: the program costs 88 RMB a year (12 EUR) or 888 RMB a year ($120 EUR) based on a score that incentivizes incentive customers to write reviews, shop across a variety of product categories and interact with other Alibaba customers via Q&A sections . Which creates a virtuous circle of trust for the customers, the platform and the merchants alike .

case study

Alibaba

case study

Lululemon

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Decide which Loyalty Program structure works best for you, based on the listed pros, cons, and case studies..

1. On a scale from 1 to 10, how committed is your organization to creating a Loyalty Program?

2. Which structure could you realistically implement, given your timeline and internal resource?3. What would you need in order to implement a more sophisticated Program?

Time to take action !

Now that you know what type of Loyalty Programs are available to you, it will be a lot easier to figure out what would work best for your business . Once you have chosen the approach, the scale of work needed becomes a lot more obvious and the process for creating a scheme more straightforward .

Before you dive into the next task and note down your ideas, remember one thing - to earn customer loyalty, it is essential that customers see you as ‘honest’ and ‘trustworthy’ . Whatever you come up with, ensure that the process of gaining and redeeming points is transparent and that customer data is used appropriately .

This may seem like a small issue, but 91% of customers list data security as a deal breaker.

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What to consider when creating a loyalty scheme?

The wisest thing you can do when creating a loyalty scheme is to always keep your customers in mind . It may feel convenient to choose rewards that are most affordable for the business and don’t require any time investment, but this can easily end up costing you more .

You could end up overspending by giving away individual products instead of creating mass experiences or be

faced with low enrollment levels due to rewards being irrelevant .

This section provides you with guidance on what kind of rewards are considered more attractive than others, and how to adjust them to audiences of different ages and genders . You will be able to use this information as both inspiration and a filter once you start working up your reward offering .

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Week 1

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The desire for personalization is universal

The first and the most surprising finding from years of research into Loyalty Programs is that the financial value of rewards is by no means most important .

Providing an offer that is relevant to the customer, be it a discount on the product they have been browsing but haven’t purchased, or early notification about an item when it’s back in stock, is more impactful.

Generational differences are extreme

Using personalization makes the customer 8x more likely to say they are satisfied with the loyalty scheme.

With such strong desire for personalization, you shouldn’t be surprised to learn that generations put a different value on certain types of rewards . For example:

Baby Boomers, with their great spending power, want to be given access to premium and exclusive products, and simple processes to redeem them .

Baby Busters also want easy redemption, but in order to get better value for money, not in order to treat themselves .

Younger generations are more tolerant of more complex Loyalty Programs and redemption terms .

Millennials crave being part of a like-minded community and the social credibility that comes with it .

Gen Z wants to do good and feel good - give them opportunities to be charitable and create authentically branded events.

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Men and women want to be treated differently

Men are interested in tiered Loyalty Programs and motivated to progress upwards and receive status-based rewards . The biggest struggle is to get their attention and sign them up in the first place, so you might need to consider giving away rewards for registration alone .

Women are more likely to sign up driven by the simple promise of personalization, but the retailer needs to deliver on it! Birthday rewards go a long way and will generate enough goodwill to warrant word of mouth . If she gets rewarded for spreading the word - even better!

Once you have decided what type of rewards are most relevant to your audience, it’s time to consider how to make these affordable for your business . If you’re looking at giving away your own products or services, choose the ones with a margin of at least 10% . This way the giveaways won’t erode your bottom line .

Only ever compromise on this in the top tiers . If your loyalty scheme is well-designed, less than 10% of your customers will ever be at the upper tier, and their extra spend during the journey through the tiers would have more than covered for the loss of margin .

Differences in preferences across regions

International companies, as well as domestic enterprises in large countries, may want to consider geographical differences in taste, as well as cultural differences that could affect the perceived value of what is rewarded and how it is rewarded . American millennials are more independent and save less of their income than their Chinese counterparts, while the latter are twice as much likely to own their own home .

Another example: domestically, Chinese consumers in first and second-tier cities such as Beijing, Shanghai, Shenzhen will value more experiential rewards such as travel and personal service, while tier 3+ cities inhabitants will value more monetary rewards and rebates, and have a preference for experiences that can involve the whole family .

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Consider what kind of rewards are most appropriate for your business

1. Who is your target audience and what kind of rewards do they find appealing?

2. What is your competition doing? Can you afford to match their loyalty scheme?3. What kind of rewards would be both competitive and attractive to your audience?

Time to take action !

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What behaviors should be rewarded?

So far you have decided on the most relevant Loyalty Program structure for your business and the type of rewards that would make your offer attractive and competitive without undermining your bottom line .

Today we will focus on what behaviors should be rewarded and why . Before we think about what actions we deem valuable apart from the transaction itself, let’s imagine the Program from the point of view of your customer .

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Week 1

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Most Loyalty Programs are run according to the same monetary equation of giving back 1% of the purchase value, e .g . spend $1 to get 1 point and earn 100 points to get $1 off .

This is applied to all entry-level customers and built upon when they progress through the tiers . In most cases, retailers choose to give away 2 points per $1 in the middle tier and 5 points per $ at the top tier .

Find behaviors worth rewarding

When thinking about what behaviors to reward, one thing is key to remember:

77% of customers of Loyalty Programs are not happy with how rewards can be earned.

This is further backed by the finding that the most successful Loyalty Programs reward at least 6 types of actions . This means that for your loyalty scheme to work, you need to provide options and reward customers beyond the purchase . Here are some examples:

You could give the customer 200 points for creating an account. The data you will gather and the incremental sales you will generate by using it will far outweigh the $2 you spent on it .

200pts

You could splash out and spend the same on a Birthday treat too! That would be the cheapest way to deliver personalization, also giving you permission to invite the customer to treat themselves and spend the extra points there and then .

$2

Give them $1 worth of points for writing a product review and see the social proof disproportionally boost your sales .

$1

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Let’s do the math

Imagine a scenario in which a first-time customer just spent $100 with you and created an online account mentioning their birthday . They enjoyed their purchase and wrote two product reviews, followed two of your channels on social media and referred a friend . All of this would cost you no more than $10 but would rapidly accelerate your growth with exponential increases in awareness, relevance and credibility metrics .

The intangible benefit of rewarding small behaviors

Once you know who your customers are and can follow them back on social media, you get exposed to open data on their browsing behavior . The accounts they choose to follow and the posts they like provide a seamless way of gathering preference data . Still, only 30% of companies do this at the moment, and even of those that do collect the data - only 60% bother to use it .

This is the most untapped opportunity in loyalty marketing right now - make the most of it! Here are a few more innovative case studies to broaden your thinking about behaviors worth rewarding .

To boost the relationship with your customer’s friends, invite the customer to share your brand on social media or drive friends to explore your offering . At $1, this is the most cost-effective approach to acquisition .

FollowAnother $1 could go to incentivizing customers to follow you on social media . That’s a small price to pay to stay top of mind and the act of following your account alone puts your brand in front of their friends .

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Farfetch, an online fashion retail platform that sells products from over 700 international brands, has started rewarding friend referrals . The offer is available to all customers - invite a friend to get free shipping for yourself and 10% off for your friend’s first order .

The scheme is part of the company’s ongoing exploration of new approaches to growth and has contributed to a 74% increase in revenues in 2016, according to Business Insider .

Starwood Hotels and Resorts, who own, manage, or franchise over 1,200 properties around the world are rewarding its guests for sharing the information in their Uber account . By opening access to one’s Uber data, the guest receives extra points to their Starwood Preferred Guest account .

The generous rewards Program has contributed to the 60% boost in Marriott stock price between 2016 and 2017, according to Fortune .

case study

Starwood Hotels

case study

Farfetch

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case study

Turkish Airlines

Turkish Airlines, part of the Star Alliance network, positions itself as an airline that helps you ‘Widen Your World’ . Its Frequent Flyer Program ‘Miles & Smiles’ supports this mission and rewards customers not just for flying, but also for spending with organizations that stand for self-development . One of those is Istanbul Aydin University, which allocates Turkish Airline miles for investment into its postgraduate and doctorate degrees .

According to the Turkish Airlines Annual Report, the proportion of tickets purchased with miles has been growing rapidly since 2014, helping the airline win three Travelers’ Choice Awards from TripAdvisor in 2018 .

Skin care devices brand Foreo rewards its Chinese customer to register their device with the brand’s WeChat account by offering them warranty services and product authenticity verification .

On top of this, customers can earn additional points by doing a daily «check in» on the brand’s account . Each check-in removes a limitation on unsolicited WeChat messaging and allows Foreo to send them targeted content for 48 hours .

case study

Foreo

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Brainstorm all the possible beha-viors of your customers that you could reward.1. What does your customer do before, during, and after their purchase?

2. Which of these activities could benefit your business if done more often or made public?3. How much value do you put on each activity in relation to others? How many points are they worth?

Time to take action !

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How to reward the desired behaviors?

Now you know what range of behavior you could be rewarding and how these can benefit your business, let’s focus on what you will be rewarding them with .Today we will help you ensure that the

rewards you choose are sustainable for your business and give you ideas on even more cost-efficient rewards you could add to your offer .

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Week 1

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First of all, you need to know the ultimate rule of thumb in loyalty marketing - set the value of your reward per customer per order to be lower than your cost per acquisition . You obviously don’t want to pay more for your customer to come back compared to how much you spend to acquire a new one . Remembering this rule allows you to quickly evaluate your ideas about new rewards .

Now, let’s look at rewards that work best for entry-level shoppers compared to loyalists . The logic is simple - a first-timer doesn’t have any loyalty to your business just yet, so you will have to earn theirs by providing rewards that are valuable and instant . These include but are not limited to free shipping, money or % off the retail price, or free product .

Returning customers already know you, your product range, and have demonstrated their loyalty to you . Reward them with experiences that make them feel special. These can be special events, early access to new products or sales, special offers on best-selling products, or even gift cards . Gift cards are a particularly great option because a returning customer already knows your offering and will find the gift valuable . For maximum benefit, deliver them unannounced . This way they are likely to trigger an extra sale while bringing even more positive emotions .

Finally, consider values-based rewards, as the positive emotions they deliver make them appealing across different genders, ages, and geographies . Locate charities aligned with your brand’s and your customers’ values and create a way in which a customers’ points or even actual rewards could be donated to them .

79% of consumers report being excited about the idea of a surprise reward.

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Best Buy, an American multinational consumer electronics retailer rewards their customers with an enhanced service experience . Among other benefits, the 3-tier scheme features an increasing returns and exchanges window, from the standard 15 days for new customers, to 45 days for the top tier .

In an interview with CNBC, Best Buy links its new customer-centric initiatives to ongoing revenue growth .

Kimpton is a group of boutique hotels owned by Intercontinental, who invented the idea of surprising customers when they least expect it . Kimpton Karma Rewards includes unpublished benefits, such as chef’s treats or a ‘Raid the Bar’ voucher, that get given away based on a set of 300 unpublished behaviors .

As soon as it was announced that Kimpton Karma Rewards was being folded into the wider Loyalty Program of Intercontinental, the leading frequent flyer blog Boarding Area published a post bemoaning the loss of special benefits .

case study

Kimpton

case study

Best Buy

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case study

Aeroplan

Aeroplan, a coalition Loyalty Program created by Air Canada, offers customers an option to donate their miles to charity . Its Beyond Miles Program helps offset travel costs of charities that support international projects .

According to Aeroplan owners Aimia, 500 million miles have been donated by 5 million members so far, all to support non-profit projects all over the world .

Brainstorm new non-monetary cost-effective ways in which you could reward your customers.1. How much does your business currently spend on acquisition of new customers?

2. Which of the reward ideas mentioned above could be most attractive to your target customer?3. How can you refine them to ensure they are as desirable but cost-effective?

Time to take action !

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How to create a category-leading Loyalty Program?

Welcome to week 2! So far you have learned about the business benefits of Loyalty Programs and chosen a structure that will work for your business .

Together, we have looked into ways to make sure what you are offering is appealing to your audience and broadened your thinking when it comes to behaviors worth rewarding and the rewards you can offer .

Today we look at ways of making your Program not just effective, but category-leading. As before, this does not imply the need for a higher spend on rewards, but simply another layer of thinking based on best practice .

To make this process more effective, we have divided this section into three product categories - luxury, retail, and fashion . If your business does not fit into any of these categories, please still complete today’s reading . Review the tips you find here against the dynamics of your product category and the needs of your business . You may be surprised by how much of this will be applicable to your situation .

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case study

Moda Operandi

Moda Operandi is an online luxury fashion retailer that allows customers to preorder looks directly from designers, immediately after their runway show . Its VIP Loyalty Program is available to customers who spend $100,000+ and includes wardrobe consultation and concierge services, which can go as far as planning daily outfits for a client’s vacation .

Business of Fashion reports that sales grew 54% between 2016 and 2015 when the scheme was launched .

Loyalty in Luxury - Do’s and Don’ts

The time is right for luxury brands to put the effort into encouraging their customers to become loyalists, as 56% of high-income consumers feel less loyal to brands now than they previously did . The great thing is that luxury customers won’t think twice about joining the Program, as they display a natural desire to be acknowledged for their high-spending behavior .

Unlike with other categories, luxury brand loyalty becomes a status symbol in itself, giving the Program extra exposure through disproportionate word of mouth .

Focuson publicly visible image-based rewards, e .g . exclusive products, services, or experiences .

Offer subtractive discounts, as this will instantly dilute the power of a luxury brand .Give

additional value - free complimentary products or even gift cards to trigger instant excitement .

Supportexisting behaviors - reward customers for sharing images of their purchases on social media .

Do Don’t

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Loyalty in Retail - Do’s and Don’ts

Retail is a notoriously difficult category for earning customer loyalty because it is so easy to switch to a competitor who stocks similar products . Recent studies reveal that 91% of customers around the world are ready to cheat on their favorite retailer with a competitor .

A Loyalty Program can help generate customer reviews and social mentions to illustrate the intangible advantages of a superior customer experience and help keep the retailer front of mind .

Personalizeyour rewards - not doing so annoys over 50% of retail Loyalty Program customers .

Rewardcustomers for opening accounts and sharing personal information, then use it to cross-sell .

Invitesocial follows and reviews to build a community that acts as proof of a positive shopping experience .

Restrictbest-selling products from being redeemed with points, as this will cause major disappointment .

Do Don’t

Nordstrom, an American-based chain of department stores, offers those who spend over $5,000 access to exclusive products . Their premium-priced Extraordinary Experiences are kept secret from the general public . Past examples include a day out with a fashion designer and a training session with a coach of a top athlete .

According to Forbes, the Nordstrom Rewards scheme had 7.8 million active members as of April 2017 .

case study

Nordstrom

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Loyalty in Fashion - Do’s and Don’ts

With its ever-changing stock, fashion is a category where loyalty schemes serve a pragmatic purpose - to ensure customers come back to view it . Unfortunately, this means that the loyalty area is oversaturated and extremely competitive .

47% of shoppers are part of a fashion loyalty program and often hold multiple memberships with different brands . What’s even more challenging, few of these seem like a good deal - only 31% of members report being very satisfied . Still, there are a few tactics that will achieve strong results .

Stop at mundane rewards . Only exclusive products and events will entice members to move up the tiers .

Rewardvisual social media shares to drive awareness of the product to new shoppers .

Do Don’tOffercompetitive value with discounts or gift cards, to quickly trigger preference for the brand .

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Invitesocial media follows, so shoppers are continuously exposed to your full range of products .

case study

Urban Outfitters

Urban Outfitters, an American fashion retail brand targeting young adults worldwide, has seen its stock prices more than double in the 12 months leading up to July 2018, according to The Financial Times . Its new scheme rewards not just purchases, but a total of 10 actions including in-store browsing, social posts with a brand hashtag, attending brand events or reading the blog .

The rewards also aren’t all transactional - one can earn celebrity meet-and-greets and tickets to exclusive events .

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Think about your industry and product category, research if needed, and refine your thinking to date.1. What are the recommended tactics in your category? How can you apply them to your offer?

2. What are the practices to avoid? Do you need to adjust your offer to make it fit?3. Are your competitors taking this advice into account? What can you learn from them?

Time to take action !

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ZZ

ZZ

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How to check if the Program is financially sound?

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Now you have your loyalty scheme structure in place and have refined how it works according to best practice, it’s now time to review how it will perform in the real world . Today we will create the financial model for your Program and seek to predict its potential ROI.

These steps are essential to ensure you are able to generate internal buy-in for

the development and implementation of this Loyalty Program . Done right, this process will help you position the Program as a revenue generator, as opposed to a cost center .

The implementation of the Loyalty Program will require financial and time investment and this approach will make such negotiation run smoother .

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Week 2

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Follow this process to make the initial performance predictions:

1. Divide customers into behavioral segments based on past purchase behavior.

For example, create one group that has shopped with you once, one that has shopped with you 2-4 times, and one that has shopped with you 5 times or more . Alternatively, split them by the total amount spent with your brand to date, purchasing frequency or even demographics . The more segments you are exploring, the more precise your calculations will be, but watch out - don’t overwhelm yourself with data!

2. Predict how each segment will respond to the introduction of the scheme.

Make assumptions about their enrollment rate, expected engagement rate with the scheme, the increase in spending due to the Program, and points earned through shopping and other activities . To boost the financial viability, you could also take into account redemption levels, which will grow over time but start low .

3. Decide how quickly you would expect each segment to react to the introduction of the scheme and change their behavior.

This can differ significantly by product category and the customers’ existing level of engagement with your brand . Be realistic - you will need to start with building awareness and comprehension, which may take some time unless you are ready to invest in advertising .

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Here are the definitions of key terms you need to keep in mind:

Enrollment level Represents the proportion of either your total number of customers or the number of customers in a certain segment, who have actively enrolled to be part of your loyalty program.

Engagement level Refers to the proportion of people who have not only enrolled in the loyalty scheme but have also started engaging with it - by earning points through either purchases or completing relevant actions .Engagement level is calculated based on the total number of customers who have enrolled in the loyalty scheme, contrary to the much higher total number of customers .

Redemption rateIs a measure of the proportion of points you are issuing that are actually being redeemed on a reward . This metric is essential, as it demonstrates whether the customers are passively earning points with their regular purchases, or whether they are actively engaged, loyal, and get value from their membership . Calculate this metric by comparing the total amount of points spent to a total of points issued to members over the same period of time . The timeframe should be between 6 and 12 months .

Redemption value Is a total amount of money, in any relevant currency, that you will spend on issuing rewards as they are being redeemed . This metric is key when planning your loyalty program, as it allows you to make sure that the value of the rewards you issue is lower than the increase in profit that comes from the extra spend by your loyal customers . When calculating this, remember that you don’t need to attach value to all the points that have been issued, but a certain proportion of points that are likely to be redeemed .

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YEAR 1 Segment A Segment B Segment C

Segment size (number of people)

Enrollment level (%)

Engagement level (% of enrollment)

Average spend (e .g . per year)

Increase in spend due to Program (% annual)

Value of increase in spending due to Program

Value of points earned through shopping

Value of points earned from rewarded activities

Total value of points to redeem

Redemption rate (%)

Redemption value

Balance: the value of the increase in spending due to shopping - redemption value

You won’t be able to complete this table accurately unless you have a thorough understanding of how likely your customers are to redeem rewards . Analysis of international case studies shows that a good Program should reach a 20% redemption rate after 6 months . The average redemption rate is at just 13%, but the most successful scheme can reach as high as 32% . Adjust your predictions according to these figures .

Create the initial draft of financial projections by completing the table above.1. How does your business segment its consumers? Can you simplify and split them into 3-5 groups?

2. What type of insight do you have about their buying behavior? How likely is it to change?3. How easy are they to reach? How much do you know about their responsiveness to Marketing?

Time to take action !

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How to assess the Program’s effectiveness?

Yesterday you created the first predictions of how the Program you have designed will generate additional revenue . A lot of the assumptions that you made still need to be verified and calculations extended into years 2 and 3 .

In addition, in order to talk about overall effectiveness, you need to consider the back-end investment into the Program in the first place . Today we will explore how to advance from the first draft to a fully fleshed out proposal .

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Week 2

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Extend your projections

Follow the process in yesterday’s table to complete calculations for your segments for Years 2 and 3 in the running of the scheme . Do take into account that the awareness of the scheme, enrollment, engagement and redemption levels will increase with time . Also, don’t forget that the sizes of your customer segments will change, as some become more valuable to the business when they shop with you again and again, driven by the Loyalty Program . It might be easier to create a separate Excel spreadsheet for your calculations in order to keep track of your thinking and adjust it with ease .

Refine your figures

With these initial calculations in hand, you are now able to refine your approach . This stage will take time, so, for now, just focus on getting to know the process .

1. Conduct customer research to review your assumptions . Choose a methodology that is most accessible to you - be it a detailed quantitative survey with a significant sample of respondents, or a series of small focus groups . Remember, you are not trying to get to one final answer, but to understand the variety of ways in which different customers may respond to your Loyalty Program .

2. Adjust your projections based on the findings of the research, from Year 1 to Year 3 . Use your critical judgment when refining the inputs . No customer research can ever deliver accurate projections, as no human can predict their future actions with any real guarantee .

3. Review metrics and outputs with Finance, Marketing, and even Merchandising teams and adjust again based on the latest insight available to them . The Finance team will have a firm grasp on past buying figures, which you can use as a benchmark . Marketing and Merchandising will have first-hand knowledge of the changing attitudes and behaviors of customers in every segment .

4. Refine the loyalty scheme offer if needed . You should aim for the Program to break even by the end of Year 3 at the latest . If your existing calculations don’t get you there on time, see how you can sustain interest in your reward offers while cutting costs . Think about the problem creatively . You don’t need to promise high-value product exchanges to make your members feel special .

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5. Calculate the timing by which the Program should reach a break-even point or some profitability milestone . Compare your existing company-wide 3-year revenue projections with those you would expect to see once you run the Program . The number representing the difference becomes your new negotiating tool .

Subtract the costs

By using the table above, you have already acknowledged the direct costs associated with running the Loyalty Program - the value of redeemed rewards . Now it’s time to be transparent and include other spending that will be needed to get the loyalty scheme off the ground:

Indirect costs: the value of training and promotional materials, as well as physical cards if needed .

Variable costs: how much internal resource is required to onboard staff and manage the Program .

Fixed costs: the development of the platform or access to software, splitting the depreciation cost over a few years .

While indirect and variable costs will vary based on the type of your business, geography, and staffing structure, the fixed costs are a little more predictable . As a guide, you have two options:

1. Hosted solutions, which would be built for you and can be highly customizable . These take a long time to implement, require cross-departmental collaboration, and demand a large upfront investment .

2. SaaS, which is hosted separately from your organization, in the cloud, and can be implemented straight away . While it does offer less customization, this could be perfect for getting started with Loyalty Programs, as the upfront investment is comparatively small .

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Pull out the top success metrics

While ROI is a great topline figure to communicate the benefit of the loyalty scheme, changes in other business metrics can help you build your case . What’s even better - most are already in your calculations, you just need to pull them out and present alongside the ROI . Others can be easily calculated using those figures . For example:

Member participation: enrollment rate, engagement rate, redemption rate .

Overall sales performance: repeat purchase rate, purchase frequency, average order value .

There are a few more metrics you will be able to calculate once the scheme is live, e .g . lifetime value, rate of customer referrals, and average usercustomer acquisition cost . These rely on too many external variables to issue a prediction with any level of credibility, so keep them outside of your proposal for now .

Schedule monthly reviews

It’s of critical importance that you regularly review the performance of your loyalty scheme after the launch . Make sure to keep track of monthly changes in KPIs after the launch, and ensure you reflect on these within the context of the seasonal changes in your business . Once you have enough data, compare quarterly and yearly performance, as well as that of specific months across the years .

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We suggest tracking the following 5 KPIs as a minimum:

1. Sales Value. Total revenue brought in that month . Look for positive changes that outpace past trends .

2. Average Order Value. Divide total revenue by the number of orders taken in that timeframe . Should go up .

3. Repeat Purchase Rate. Divide the number of returning customers by the total customer number . Easy!

4. Customer Lifetime Value. Total profit to date divided by the number of customers . Expect slow changes .

5. Customer Acquisition Cost. The average amount you spend to acquire a new customer . Will decrease .

Create a process to help you assess and articulate the Program’s potential effectiveness.1. Set up a meeting with key internal stakeholders who could help you refine your figures .

2. Estimate the additional costs of the Program, including those that are indirect, variable and fixed .3. Summarize the changes to key success metrics over time, based on your prior projections .

Time to take action !

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Today is the day it gets really exciting! You’ve already done the hardest part - figured out what your Loyalty Program should look like and calculated the financials behind it .

Now is the time to plan how you are going to show it to the world! Let’s dive into branding the Program, creating the relevant marketing materials and launching it .

How to bring the Program to life?

Choose a great name for your Program

At this point in time, the average shopper belongs to 13 Loyalty Programs but is only active in 7 . This means that for your Program to stand out, on its own and within marketing communications, you need to use the right language . To create a positive and lasting first impression, aim for an instant emotional response . Don’t be scared of using humor, if this feels appropriate for your product category! Try alliteration to make your name and copy more memorable .

ON

OFF

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Week 2

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Adidas, one of the world’s top manufacturers of sports apparel and accessories, launched a loyalty scheme for the South African market . The name of the Program is synonymous with the brand - 3Stripes .

The Program gained wide adoption and became one of the reasons why in 2016, Adidas finally caught up with Nike in terms of top of mind awareness . The brands were finally going hand in hand in South African search volumes on Google Trends .

Frostbeard Studio is an American family-owned business selling literary-themed handmade candles and artwork . Its Loyalty Program is called Bibliophile Rewards - a name the target audience can identify with and finds aspirational .

Among other things, the Program rewards social posts about the purchases, which has helped it gain fame and get featured on BuzzFeed, Entrepreneur, CNBC, and Bustle .

case study

Frostbeard Studio

case study

Adidas

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O2, the second-largest mobile network operator in the United Kingdom has made its Loyalty Program stand out by articulating the benefit in one word . While most competitor Programs offer freebies and special deals, O2 Priority also gives members early access to ticket sales and TV shows .

According to owners Telefonica, since establishing the scheme, O2 has grown to 25 million subscribers in 2017 .

case study

O2

Alibaba’s 88VIP loyalty program is a very clever play that combines the symbolic number 8, which means luck in Chinese culture, together with the pronunciation of the double 8 which sounds like ‘father’ in Chinese . That makes a very catchy name!

case study

Alibaba

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Help customers visualize the offer

It can be hard to convince your customers to sign up for the Loyalty Program and share their data if you don’t offer a clear set of attractive benefits . This makes building an effective explainer page a crucial task for a marketer hoping to launch a Loyalty Program .

Done well, an explainer page also makes the process of selling in the Program internally much more efficient . A one-pager should tell the customers what they get for signing up, how to earn points and redeem them, how the tiers work (if applicable), and any Terms and Conditions they need to be aware of . Once all the information is included, customize the page with colors, photography, and icons that are consistent with your overarching brand story and identity .

Create a launch plan

In order to maximize the adoption of your loyalty scheme from the get-go, you need to make sure the launch is supported by every possible marketing touchpoint:

Include the Loyalty Program prominently within the homepage of all your channels (website, app, facebook page, instant messaging app like WeChat), linking to the explainer page .

Call out earning opportunities on product pages and during checkout .

Create interest by allocating points for free or based on purchases during the last 90 days .

Compose a sequence of reward messages (emails, SMS, instant messaging, push notifications), generic and by segment type .

Add a loyalty banner in transactional messages, e .g . order and shipping confirmation .

Display available points whenever interacting with the customer by name, on the website or app or in communications .

Invite redemption frequently, as 28% of members abandon programs without redeeming any points .

With all of these assets in place, you are ready to go live . If possible, it is a good idea to first complete a small testing round, targeting a certain customer segment or geographical region . Track customer behavior and Program enrollment rates and adjust the offer or promotional assets to maximize it . Once you’ve optimized the performance of the Program on a small scale, schedule the big launch .

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Offering a seamless omni channel loyalty experience is a de facto standard in China . Customers expect to be indentified, register their purchases and redeem points and rewards regardless of the website, app or offline store they are using .

Acessories brand Doughnut offers their customers to register their Alibaba ID (the equivalent to Amazon in China) to the brand’s WeChat account: they are then notified in real time of their points credit via their preferred messaging app, and can redeem their points on WeChat, in store or directly on the Doughnut Alibaba store .

case study

Doughnut

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Payback is a German loyalty program that enables consumers to seamlessly collect points with hundreds of relevant companies, from online travel booking platforms to brick and mortar book shops . The currency can then be redeemed for a wide range of relevant products across multiple categories and brands .

The main selling point of this program is the simplicity of use - a single card applies across all retailers and can be replaced with an app if preferred . This has led to members using it on average 4 times per day, resulting in substantial rewards and growth in popularity . Today, there are 30 million active Payback customers in Germany and the scheme is being expanded to other markets .

case study

Payback

Take the first steps towards packaging your Loyalty Program for the customers.1. Think of 3 potential names for the scheme, referencing either your customers or the product benefit .

2. Create a checklist for marketing collateral that will need to be created ahead of launch .3. Consider what customer segment is most suitable to test the Program on a smaller scale .

Time to take action !

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Congratulations! You are one step away from having a fully designed Loyalty Program that has been developed with your business in mind . Today is about making sure that everything you have worked on so far doesn’t go to waste . This time we will prepare to integrate the

Loyalty Program into your organization . You will learn how to allocate responsibility for the Program most effectively, how to onboard frontline staff and sync up your activity with any other marketing automation already in place .

How to embed the scheme within the organization?

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Week 2

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Elect or hire a Loyalty Manager

Unless you yourself are going to be the person looking after the day to day running of the scheme, you need to allocate an alternative resource . Not only that, this person should play a crucial role in the launch of the scheme, which is likely to require full-time capacity . They will need to act as a project manager for implementation of the Program, organize staff training, and make sure all launch activities work well together .

As time goes on, this person will need to be the contact point for staff on the ground, gathering, reviewing and addressing the feedback they get from customers . They will also need to liaise with Legal and Accounting departments if the scheme requires any changes .

Who and how to onboard

For best results, it is recommended that the company runs a live onboarding session, featuring representatives from Marketing, Customer Support, and Web Administration . All of these employees will need to be taught about the structure of the Program, the rewards available and what results the business is aiming for by introducing the Loyalty Program .

The frontline staff must be trained to record points and administer rewards and would benefit from having first-hand experience of interacting with the scheme as if they were the customer . To help them retain the information, supply the following materials:

Marketing posters or handouts to be presented in stores .

Scripts or pitches for employees to encourage enrollment .

Instructions to check and adjust members’ points balance .

FAQs for store and customer service teams .

The process for handling refunds, returns, and canceled orders.

If you want your Loyalty Program to take off even quicker and have the resources to support this - consider having incentives for frontline staff, for encouraging loyalty scheme take-up . To make this cost effective and drive participation, try the mechanic of a monthly competition .

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Integrate with other marketing activities

First of all, automate the email sequences associated with the loyalty scheme itself - invitation, member onboarding, alerts of Birthday rewards, and promotions related to their registration anniversary . Create a system that regularly checks a member’s status and sends reminders when they are eligible for a reward, are close to a reward threshold, or to a tier upgrade . Invite sales and redemption by presenting relevant products just before the point expiration deadline .

Once the basics are pre-set, you can incorporate the Loyalty Program into the rest of your marketing activity . For example:

Include the opportunity to earn loyalty points into your usual cart abandonment email.

Schedule for bonus points events linked to holiday shopping .

Follow up on purchases with a request for a rewarded review .

Distribute referral codes following a positive review or a re-purchase .

What do consumers say ?

12xMembers are 12x more likely to engage with the loyalty scheme once it’s explained to them by staff .

22%Only 22% of members believe that the staff makes them feel special .

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What do consumers say ?

57%of members don’t know their points balance .

38%are unaware of their points value .

34%do not have a redemption goal .

Decide what you need to do to embed the Loyalty Program into your organization most effectively.1. Is there anyone with the capacity to take on the role of a Loyalty Manager or is a new hire required?

2. What affordable incentives can you provide to frontline staff to help you enroll more members? 3. How could loyalty be weaved into your marketing activity scheduled for the next 3-6 months?

Time to take action !

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It’s your turn now!

We are officially done! Over the last 2 weeks, you have gained a thorough understanding of why more and more businesses around the world are looking towards loyalty to improve their operations and designed a scheme that will work for your business . By taking into account industry best practices and inspirational case studies, you were able to devise a Program that will make sense for your Finance Manager, as well as your customer .

You have learned how to assess the effectiveness of your scheme before launch and evaluate its performance going forward . Together, we have branded it, planned how to launch it, and explored ways to keep incorporating it into your future marketing activities .

If you have been completing the tasks throughout this guide, by now you should have all the thinking you need in order to start having internal conversations about implementing a loyalty scheme in your company . While it’s all fresh in your head, we encourage you to schedule a meeting with the relevant stakeholders and share the knowledge you have gained to date . Collect all your notes and refine them to make sure they paint a consistent picture of what you are trying to achieve and how to get there .

Use this guide to address any questions you may get in the future and to keep evolving your thinking during the implementation of the scheme .

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Manage your Loyalty Programs with Splio.

Splio is a team of marketers and developers based in Europe and in China who provides an omnichannel marketing platform enabling you to create personalized Loyalty Programs for your brand .

With support for both transactional and relational programs, our platform will help you combine both loyalty and online/offline interactions to place client engagement and retainment at the heart of your strategy .

Create and manage your Loyalty Programs in a few clicks without the need for a third-party solution .

Leverage the power of centralized access to transactional, behavioral and loyalty data .

Combine loyalty with relationship marketing for more relevant and effective interactions .

Orchestrate your Loyalty Program based on the interactions between your brand, its clients, and online ambassadors .

Use lifecycle events and customer actions, including campaign respon- siveness and even app or social engagement, to credit points or trigger rewards .

Target and customize your communications according to loyalty points, status, tiered, rewards and your clients’ buying history .

Improve your campaign performance and deliverability.

Analyze your KPIs and adapt your CRM strategy.

With Splio, you can measure, reward and retain your clients’ and ambassadors’ engagement on every channel to maximize loyalty, revenue and profit .

Contact us

contact@splio.cn

+86 (021) 6217-0157

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130 marketers & developers

Headquarters in Paris, France

15+ years of experience

4 offices in Europe

1 officein Shanghai

25 people in the Shanghai office

Splio in Europe & China 500 brands use Splio

Omnichannel Loyalty Marketing Platform.

Splio uniquely combines loyalty and marketing automation with a consolidated 360-degree on-and-offline view of the customer in one single platform, so brands can interact and engage with their customers, and offer them a seamless brand experience on all channels .

Omnichannel CRM: all your customer data & transactions in one place: Tmall, JD, WeChat store, offline stores. Know your customers, understand who purchases from you, through which channel and at what frequency .

Marketing automation : target & send personalized and segmented campaigns .

Loyalty engine: increase lifetime value and sales by recognizing and rewarding loyalty, not only on transactions but with every interaction with your brand .

Global Solution. 100% China Ready!

Splio opened an office in Shanghai in 2011 and has since been connecting European brands with Chinese customers and helping Chinese brands with cross-border strategies in Europe .

WeChat as your brand hub:Native WeChat connection: identify

customers among WeChat followers .

Mini Program builder: ready to use WeChat membership platform .

Natively integrated with Chinese channels: we connect with all major platforms in China: Tmall, JD, WeChat, offline POS, etc.

No personal data headaches: your Chinese customer data stays in China (CSL) .

Your dedicated Shanghai-based team is always available to help with strategy, planning and operational tasks (content creation, design scenario, CRM management) .

Splio is a Loyalty Marketing Platform that enables brands to engage customers, drive loyalty and sales in every channel in China.

Loyalty has become more than just incentivizing purchases and collecting data . You must now manage loyalty effectively across omnichannel journeys .

Splio uniquely combines loyalty functionality with a consolidated, 360-degree on-and-offline view of the customer all in one single place, so you can treat your customers as individuals and offer them a consistent experience everywhere .

Headquartered in France, Splio has offices in China, Spain, Italy, Poland, and Brazil and serves more than 500 clients . Customers include The Kooples, Kusmi Tea, Givenchy, Caudalie, Degrenne, Desigual, Lindt, Air China and Cache Cache .

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and China

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