October 2014

 Customer Experience Driven Loyalty Programme Design


Posted @ 1700:00 on 14 October 2014


Lidl's response to the newly launched  Morrisons "loyalty" initiative, the Morrisons Match & More Card

One of many skirmishes in the eternal  EDLP (Every Day Low Prices) v Loyalty Programmes war

Perhaps the copy exaggerates things a little,  however it is a great illustration of why we should not forget  about customer experience in loyalty programme design

50% of members signed up to a new loyalty programme could be inactive within a year of its launch

The rules of engagement follow a simple formulae - The amount of effort a member of a loyalty programme needs to put in needs to be more than offset by the benefits of being a member

How many loyalty programmes actually pass this simple test?

The Lidl ad reminds us of a few things to watch out for

• keep things simple and easy

• only ask for data you will use

• have a clear privacy policy and realistic permissions

• no surprises or programme rules in small print


Programme design phase can only come when the process of setting clear goals and objectives is complete


Customer Experience at the centre of programme design

Loyalty programme design checklist , questions to consider  from a customer experience perspective sometimes forgotten when businesses focus inwardly on internal constraints such as technology, resources , margin and operations...


• to understand

• to sign up

• to earn and redeem

• to manage across channels and devices


Genuinely adds value

• loyalty benefits are perceived to be worthwhile within an acceptable collection period and effort

• able to sustain customer interest and engagement over time


Meets customers core needs

• programme plays its part in delivering against customers core needs


Emotional response

• over and above functional benefits  programme creates a positive emotional response consistent  with brand promise


Overall customer Experience

• fits seamlessly into overall customer experience

• not a bolt on or operated in a silo

• uses data collected to  personalise in and out of programme





customer experience and loyalty prgramme design Lidl Morrisons
customer experience and loyalty prgramme design Lidl Morrisons EDLP v Loyalty



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