Loyalty Canvas is a methodology created by our sister company ValueNET to aid in the creation of successful loyalty and incentive programs, enabling companies to understand, analyze and creatively discuss the best ways to stimulate behaviors from their stakeholders and make their customers and sales channels loyal.
We want to propose a practical implementation of the tool. But before we go on to do this it’s essential that you have a clear understanding of all fields of the Canvas:
When creating a loyalty program it’s essential to know what you hope it will achieve. What are the objectives of the relationship program? Why is it being created?
This is one of the most important areas of planning as it guides the entire project. Total clarity is needed about your business profile, desires and goals. For example, more recommendations, new customers, increased engagement with the brand, etc.
This is another stage of great strategic importance for the project. Your company needs to be really clear about the profile of the audiences it wants to incentivize, who the program is being made for and what their characteristics are.
It’s important to dedicate time to detailing this item because in the end, the better you know your audiences, the more likely your program is to succeed.
If your company wishes to create a loyalty program for customers, the main objective should be incentivizing behaviors such as increased purchases or sharing material online.
Only through knowledge of the exact behaviors that you want to incentivize can metrics of evaluation be put in place.
What rewards do you intend to offer participants? What will the economic benefits be?
Analyzing the profile of participants and the objectives and desired behaviors of the company will provide valuable insight into the most suitable rewards. The most effective rewards are not often not monetary. They can be recognition, training, value-added perks
In this section you define the most appropriate channel through which to communicate with participants. Sellers, representatives, apps, web portals, etc. All of these are ways of establishing and maintaining contact with audiences, be they customers, sellers, distributors or employees. You simply need to pick which is the most suitable for your program!
What resources will be necessary to ensure your loyalty or incentive program operates efficiently and achieves its goals.
You need to outline everything that will be required to put the program into practice. If your company has already determined what the profile and focus of the program is, it will be able to complete this stage with ease.
Relying on partners who can support your company achieve its objectives is important. Which partners could provide resources and help minimize costs?
List all of the partnerships which could benefit you, such as NGOs or financial institutions.
What are the costs involved in the operation of the program and which of those could have a financial impact? Remember: everything that serves as an offer of value in the incentive program generates costs for the company.
Will the program generate any kind of revenue? Will that revenue come from the program itself? Will participants be willing to pay a small monthly fee to participate? All of these questions need to be analyzed with caution and care.
Note: this isn’t an obligatory field.
How do I fill out the Loyalty Canvas?
Not all of the areas cited above will factor in the creation of your loyalty program, which will vary according to your type of business and the program objectives. We recommend the following order for filling out the form:
Objectives – Members – Behaviors – Rewards – Channels – Resources – Partners – Costs – Revenues
The ideal method is to use topics to describe each component. Here’s an example:
· Respond to questionnaires;
· Recommend or try products;
· Fill out request forms correctly;
· Control stock.
Use post-its to help build your canvas; they’re extremely visual and can easily be removed, facilitating adjustments. The ideal method is to use different colors to delineate different program members. Example: green for shop staff, pink for consumers. This makes it easy to identify behaviors and rewards for each channel.
If there are lots of different colored post-its in a single field, you need to think about perhaps developing more than one program.
We’ve prepared an example canvas for an imaginary program in the pet food industry to help you better understand how to go about filling them out.
This blog post was created in partnership with ValueNET, our sister-company which offers specialized consultancy in the loyalty market and uses Fielo technology to create, implement and manage loyalty programs and strategies.