What We Can Learn From Customer Loyalty Programs

Since 2004 my company has provided customer loyalty programs to several very large financial institutions.

You know the type of program I mean… the ones where you pull out your credit card, pay for your latest purchase and earn points which can be redeemed for travel, merchandise and gift certificates.

Needless to say, we have learned a lot over the years about this type of business. One of the most surprising things is how many similarities there are between what we do for our customer loyalty clients' cardholders and for our employee performance clients' recipients.

There have been a couple of surprising lessons concerning the number and type of rewards offered in a customer loyalty program.

Typically, customer loyalty programs often feature less than a thousand different rewards… usually only several hundred rewards. Turns out research shows that thousands and thousands of merchandise rewards aren’t necessary, regardless of the size of the program. Cardholders appreciate a carefully selected and balanced merchandise rewards selection tailored specifically to them.

Another lesson is the limitation credit card companies put on the number of gift cards featured in their programs. Gift cards reduce program brand equity! For example, when cardholders select a gift card to an electronics store versus selecting the electronic, the cardholder will associate the reward with the store they used the gift card at, not from their rewards program!

These are very sophisticated marketers who specialize in Customer Relationship Management (CRM), a well established science. So what can we learn from these experts and how can we apply their lessons to employee performance programs? I asked these CRM experts the very same question.

Their response might surprise you!

They told me that they do their very best to know and understand who their customers are and what rewards excite them. In other words, they try and create a merchandise rewards catalog that is personal and relevant to cardholders. When they heard that in our employee focused industry sometimes tens of thousands and in some cases hundreds of thousands of different rewards are offered, their response (and this came from several different companies) was identical… “I guess companies don’t know their employees very well!”

And you know what, they are right!

Offering tens of thousands of reward options really is making a statement… we (the company) don’t really know you (the employee) very well! So here, choose from a gazillion different options and hopefully there will be something you like.

I believe that for recognition to be effective it must be personal. Could it be that for rewards to be effective they too should be personal? Credit card companies have invested millions of dollars trying to reach customers on a personal basis. The same holds true for employees!

I think we can all learn some very valuable lessons from these CRM experts and apply it on the work we do for our clients' employees.

Perhaps it’s time for a new science… Employee Relationship Management!

How Organizations Empower Bully Bosses: A Criminal in the Workplace

This episode of Real Recognition Radio invites Marilyn Veincentotzs, author of How Organizations Empower Bully Bosses: A Criminal in the Workplace, to talk about the troubling trend of “bully bosses.” Learn what your leaders may unconsciously be doing to encourage this kind of behavior and what they can do to be proactive to ensure your employees are living your corporation’s values. So join in on the conversation and discover how to create a positive work environment you can be proud of!

VPHR's International Conference

My colleague Christophe Laval, founder of VPHR (Vision Performance Humain Reconnaissance), is hosting an international conference this October to discuss the importance of quality of life at work and its relation to productivity.

This event will be an opportunity for people from all different areas of expertise to share points of view and experience.

There will be presentations in English and French, so if you're looking for an excuse to visit Paris in October, here's your chance!

Click here for registration and presenter information.

How do you inspire greatness?

Have you checked out Rideau's Facebook page?

Check it out, and feel free to leave us a note on our discussion board, where we ask you, How do you inspire greatness?

The Why of Work: Creating Meaningful Work & Workplaces

According to the authors of “The Why of Work”, Dr. Dave Ulrich and Dr. Wendy Ulrich, we all seek a sense of purpose, contribution, connection, value, and hope through our work, this is what drives us and keeps us engaged.

On next Tuesday's episode of Real Recognition Radio, the Ulrichs will help you unravel the root of what motivates your employees and learn how to create leaders that will change the workplace.

Listen in next week to discover how to become a “meaning maker” and how this helps you improve productivity, customer satisfaction and your bottom line.

Why You Need a Recognition Strategy

Having a well defined recognition strategy is the first and arguably the most important element of Recognition Professionals International’s (RPI) Seven Best Practice Standards.

Why?

Simply put, recognition programs which do not align with overall corporate strategies are impossible to defend and inevitably end up being considered an expense instead of an investment. In hard times, these aimless programs are among the first things to be cut.

Any well thought out recognition strategy that ties into your corporation’s business objectives or mission, vision and values is much more readily defensible because senior management can see the link between your strategy and their business objectives.

Corporations will always try and cut expenses, but most will do their utmost to defend investments they believe will help grow the business and deliver profits to shareholders.

RPI's second Best Standard is to have senior management buy-in and support for your recognition strategy. If your recognition strategy is linked to senior management’s business strategies, it makes it much more likely that someone in the C-Suite will act as your recognition champion.

So here are a few tips… take a hard look at your current recognition programs. Do you have a written recognition strategy? Does this strategy align and link up with your senior leadership’s business objectives? Do your leaders understand the strategy and its linkages? Do your leaders actively support your recognition programs?

If the answer is “no” to any of these questions, you should invest some serious time and effort on your recognition strategy, otherwise, you might find yourself considered an expense… and we all know what happens to expenses!

Philanthro-captialism: Oxymoron or Social Responsibility?

My colleagues Roy Saunderson and Max Brown, hosts of Real Recognition Radio tell me there is a global revolution under way in philanthropy: organizations are finding out that doing good for others mean doing well for themselves too.

Real Recognition Radio's guest, Matthew Bishop is the US Business Editor and New York Bureau Chief of The Economist, and the author of several books including, “Philanthrocapitalism.”

According to former U.S President Bill Clinton, “This is an important book. Our interdependent world is too unequal, unstable, and unsustainable. We have to transform it into one of shared responsibilities, shared opportunities, and a shared sense of community.”

Listen and learn how making the world better makes perfect corporate $ense.

Tune in next Tuesday at 1 PM ET