THE LOYALTY PROGRAM BLIND SPOT: WHY ROBUST BUSINESS CASES MATTER

Building on yesterday's post - securing C-suite buy-in - today is focused on a critical, yet often overlooked element: the business case.

In my 30 years of navigating loyalty programs, I've observed a concerning trend: inadequate or unseen business cases. This "loyalty program blind spot" can hinder program success.

The Pitfalls of Weak Business Cases

Many companies struggle to create compelling business cases that justify investment in loyalty. Here's what I've encountered:

The Invisible Case: Programs lack a documented business case, hindering transparency and alignment and making it difficult to deliver on the objectives.

Light on Details: Business cases can skim over the design or execution specifics, failing to capture costs or returns nor demonstrate a well-defined roadmap .

Financial Hole: Financial projections are weak or absent, leaving the program's potential return unclear and the investment needed inadequate.

Knowledge Gap: Business cases are developed by individuals without deep loyalty program expertise, leading to a disconnect between the program and business goals.

No Exit Strategy: The business case fails to address the program's viability, lacking a clear plan for potential program evolution or sunsetting.

The Consequences of Invisibility:

These shortcomings have a ripple effect:

Struggle for Funding: Without a strong financial justification, securing adequate budgets is an uphill battle. This can lead to an under-resourced program that can truly engage customers undermining the potential return.

Copycat Programs: Without a clear strategic foundation, businesses may resort to generic programs that mimic competitors. These "me-too" programs fail to differentiate and struggle to connect with customers.

Program Failure: Ultimately, inadequate business cases contribute to the program's failure. Without a well-defined roadmap for success and clear metrics for measurement, it becomes difficult to track progress and optimize the program.

The Bottom Line: In today's competitive landscape, a well-developed business case is no longer a luxury, but a necessity for loyalty programs in APAC & MEA.

Tomorrow we will delve into the key components of a strong business case.

Unlocking Potential at The Loyalty Marketing Advisors (TLMA)

At TLMA, we know the power of a robust business case and how it enhances the chances of success and effectiveness of the programme. With a strong understanding of the potential impact, you will find the C suite is more open to investing which in turn leads to a more engaging program that drives stronger customer loyalty and business results.

Loyalty Connect Discussion

What are your experiences with business cases? Share your thoughts and insights in the comments below!