Best Practices for Structuring Your Program on Raleon

This document outlines best practices for launching your first campaigns on the Raleon platform to maximize engagement and profitability.

Foundational Campaign Setup

The foundation of your program is the basic incentives available for all users. This campaign would traditionally be the "spend money, earn points" campaign for a points based program.

The foundation should be simple, easy to understand, and appropriately balance rewards with the cash flow they generate.

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Simplify the Program

• Objective: Ensure ease of understanding for customers to maximize participation.
• Action Steps:
  1. Use a straightforward points system. More advanced and complex schemes should be applied with personalization and targeting. For the foundation, simple is better.
  2. Offer clear, appealing rewards for points redemption. Ensure that the both the earn and reward offers are crystal clear. Spend money, get points, redeem points for rewards.

Optimize Points to Discount Ratio

• Objective: Balance incentives without undermining profitability.
• Action Steps:
  1. Carefully calculate the exchange rate of points to discounts to prevent over-rewarding. If you have a discounting policy or strategy, make sure that your program rewards are aligned.
  2. Generic loyalty programs typically recommend a 3-10% reward ratio (spend $100, get 3-10% discount on next purchase). One of the greatest advantages Raleon provides is the ability to minimize these expense in the program -- we recommend keeping your foundational campaign at 5% or less, and then only increasing the ratio for customer segments that drive incremental cash flow gains (in other words, don't give away all your gross margin!)!

Leverage Behavioral Economics

• Objective: Enhance customer satisfaction and engagement with the program.
• Action Steps:
  1. Use larger numbers for points allocation (e.g., $1 to 10 or 100 points) to make rewards feel more substantial. This works on two levels: 1) people tend to respond better to bigger numbers and 2) larger point balances allow for greater divisibility, so your customer has greater control over how they allocate their point rewards. More choice creates a sense of more value.

Segment-Specific Campaign Strategies

Raleon allows you to layer on additional campaigns on top of your foundation. This could be a booster for your Growth segment that is always available, or they could be limited time campaigns to match seasonality, events, or other promotions.

These campaigns are particularly effective when paired with your new user acquisition campaigns. Raleon's integrations to email services and marketing automation software allow you to extend your loyalty program throughout your marketing strategy, improving gross margin and reducing CAC across the board.

You probably send new customers a follow up email after their first purchase. Layer on a loyalty campaign and drive even more activation to this existing workflow, and take your new customer workflows to a new level!

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Loyal Customers

• Objective: Acknowledge and reward loyalty without excessive cost.
• Action Steps:
  1. Focus on status and emotional rewards rather than high cost discounts.
  2. Implement exclusive offers or recognition to foster a sense of belonging.

Growth and Acquisition Segments

• Objective: Strategically increase incentives to attract less loyal or new customers.
• Action Steps:
  1. Offer higher discounts or more valuable rewards to entice actions from these segments.
  2. Layer campaigns to gradually reduce reliance on economic incentives as loyalty increases.

Campaign Frequency and Timing

Leverage Seasonality

• Objective: Utilize loyalty programs to smooth out revenue fluctuations, take advantage of events, and elevate your existing marketing calendar.
• Action Steps:
  1. Plan loyalty campaigns to boost engagement during off-peak periods.
  2. Use exclusive offers to encourage purchases and maintain a steady revenue stream.

Integration with Marketing Strategies

• Objective: Ensure consistent messaging and branding across all campaigns.
• Action Steps:
  1. Apply the same principles of copywriting and design as in acquisition campaigns.
  2. Conduct A/B testing to refine offers and messaging.

Implementation Tips

1. Start Simple: Focus initially on the foundational campaign, gradually introducing more nuanced campaigns for different customer segments.
2. Monitor and Adjust: Continuously evaluate campaign performance to optimize offers and increase customer lifetime value. Layer on additional campaigns to target, personalize, and maximize results.
3. Align Campaigns with Business Goals: Use loyalty programs as part of a broader strategy to enhance customer engagement and drive growth.

Conclusion

Launching successful campaigns on the Raleon platform requires a balance of simplicity, strategic segmentation, and careful timing. By starting with a foundational program and progressively customizing campaigns for different customer segments, businesses can enhance loyalty, smooth revenue fluctuations, and ultimately turn their existing customer base into a significant growth driver.