Loyalty Campaign Management

The program is the standing rule; a loyalty campaign is a move that targets a specific behavior for a specific period on top of that rule

A loyalty program is a structure that operates the same way every day of the year; a loyalty campaign is a time-limited move made on top of this structure, in a particular period, aimed at a particular member group, to trigger a particular behavior. A double-points week, bonus points for a first purchase in a particular category, an incentive for the last step to the next tier, birthday and membership anniversary offers, a win-back campaign for members who have not shopped for a long time, a reward for bringing a friend, an invitation to spend points that are about to expire; each works in addition to, and in harmony with, the program’s general rules. Loyalty campaign management is defining in advance the objective, audience, reward, duration, and cost of these moves, preventing them from conflicting with program rules, and measuring whether each one actually changes member behavior.

When loyalty campaigns are run outside the program, two problems arise. The first is rule confusion: do campaign points combine with program points, does the tier multiplier stack on top of the campaign multiplier, are points valid in the same transaction as the campaign discount; these questions are answered on the spot at the checkout or on the portal, and answered differently in every channel. The second is the absence of targeting: the campaign goes to all members, the member who already shops frequently is given double points, and the program’s cost rises while behavior does not change; the real target, the dormant member, does not even see the campaign. When the campaign ends, how much the points liability has grown and whether the additional sales were worth it is not calculated.

In Minerva, loyalty campaigns are a structure in which loyalty program rules and campaign management work together on the same customer identity. The campaign’s target audience is selected from program data such as members’ tier, points balance, last purchase date, frequency, category history, and churn risk; the reward type — bonus points, multiplier, tier incentive, gift, or privilege — and its duration are defined parametrically, and the combination and exclusion relationship with the program’s general rules is set from the outset. The campaign takes effect in all channels at the same time through stores, the B2B and B2R portals, the call center, and in-system e-mail and message sends; the point movements tied to the campaign are generated automatically, and the liability is tracked in financial accounts. Member behavior during the campaign period is compared with a control group not included in the campaign to measure incremental frequency, incremental basket, tier transitions, and the number of members won back; the campaign’s points cost and incremental margin are seen on the same screen, and the result becomes input for the target audience and reward design of the next loyalty campaign.

Design a loyalty campaign not as giving everyone double points, but as offering the right reward to the right member for the right behavior for a set period, and measuring its effect.
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