Evaluating costs

It’s very important to recognise that effective loyalty programmes are a long-term commitment and will often require an extended financial obligation.

Loyalty strategies must be analysed for cost as well as revenue benefit.

Research indicates that many costs need to be considered as part of this analysis. As well as the rewards and redemption costs (estimated to be around 80% of the total cost); there is the cost of IT developments, data collection and analysis and HR investments in a programme management team.

We have a range of techniques tailored to evaluate each of these factors prior to planning.