‘Rebuilding Loyalty’ is a concept developed through deep user research and analysis, aimed at fostering stronger customer advocacy.
‘Rebuilding Loyalty’ is a concept developed through deep user research and analysis, aimed at fostering stronger customer advocacy.
‘Rebuilding Loyalty’ is a concept developed through deep user research and analysis, aimed at fostering stronger customer advocacy.
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Note
Some details and visuals have been modified or omitted to respect client privacy and confidentiality.
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Note
Some details and visuals have been modified or omitted to respect client privacy and confidentiality.
⚠️
Note
Some details and visuals have been modified or omitted to respect client privacy and confidentiality.
What’s the Problem?
Our client, 'Trader', approached us with a retention challenge. While users were signing up through their usual acquisition channels, they were leaving the platform more quickly than expected. To ensure profitability, Trader needed to extend the user lifecycle and reduce early churn. Their current program is short term, transactional, their ideal customer is undefined and there is no opportunity for organic growth.
What’s the Problem?
Our client, 'Trader', approached us with a retention challenge. While users were signing up through their usual acquisition channels, they were leaving the platform more quickly than expected. To ensure profitability, Trader needed to extend the user lifecycle and reduce early churn. Their current program is short term, transactional, their ideal customer is undefined and there is no opportunity for organic growth.
What’s the Problem?
Our client, 'Trader', approached us with a retention challenge. While users were signing up through their usual acquisition channels, they were leaving the platform more quickly than expected. To ensure profitability, Trader needed to extend the user lifecycle and reduce early churn. Their current program is short term, transactional, their ideal customer is undefined and there is no opportunity for organic growth.
Goal
Shape the ideal customer by designing a program that delivers these key elements: improved engagement, higher retention, mutual trust building, reduced churn, partnerships with customers, and increased market share.
Goal
Shape the ideal customer by designing a program that delivers these key elements: improved engagement, higher retention, mutual trust building, reduced churn, partnerships with customers, and increased market share.
Goal
Shape the ideal customer by designing a program that delivers these key elements: improved engagement, higher retention, mutual trust building, reduced churn, partnerships with customers, and increased market share.
WOULDN'T IT BE GREAT IF WE COULD DESIGN A LOYALTY PROGRAM THAT REWARDS YOU?
Engineering the Ideal Customer: Transforming the Loyalty Program into a Profit Centre
Engineering the Ideal Customer: Transforming the Loyalty Program into a Profit Centre
Engineering the Ideal Customer: Transforming the Loyalty Program into a Profit Centre
Opportunity Identification
The opportunity lies in guiding casual users through a structured loyalty engine; a program designed to turn them into committed brand advocates by leveraging four key loyalty metrics:
Time – Loyalty increases the longer a customer stays. Longevity strengthens the relationship and commitment to the brand.
Cost – Over time, loyal customers become more cost-effective to serve, reducing overall servicing expenses.
Quality – Focusing on cultivating ideal customers ensures a high-quality, trustworthy user base in the long term.
Value – Customers who generate higher profits for the business should receive a greater share of that value through tailored rewards, reinforcing their continued engagement.
Opportunity Identification
The opportunity lies in guiding casual users through a structured loyalty engine; a program designed to turn them into committed brand advocates by leveraging four key loyalty metrics:
Time – Loyalty increases the longer a customer stays. Longevity strengthens the relationship and commitment to the brand.
Cost – Over time, loyal customers become more cost-effective to serve, reducing overall servicing expenses.
Quality – Focusing on cultivating ideal customers ensures a high-quality, trustworthy user base in the long term.
Value – Customers who generate higher profits for the business should receive a greater share of that value through tailored rewards, reinforcing their continued engagement.
Opportunity Identification
The opportunity lies in guiding casual users through a structured loyalty engine; a program designed to turn them into committed brand advocates by leveraging four key loyalty metrics:
Time – Loyalty increases the longer a customer stays. Longevity strengthens the relationship and commitment to the brand.
Cost – Over time, loyal customers become more cost-effective to serve, reducing overall servicing expenses.
Quality – Focusing on cultivating ideal customers ensures a high-quality, trustworthy user base in the long term.
Value – Customers who generate higher profits for the business should receive a greater share of that value through tailored rewards, reinforcing their continued engagement.
From Aimless Rewards to Sustained Loyalty
To address the core retention challenges, we began exploring a series of strategic shifts designed to build sustainable customer loyalty. The following outlines the key steps in this approach:
From Aimless Rewards to Sustained Loyalty
To address the core retention challenges, we began exploring a series of strategic shifts designed to build sustainable customer loyalty. The following outlines the key steps in this approach:
From Aimless Rewards to Sustained Loyalty
To address the core retention challenges, we began exploring a series of strategic shifts designed to build sustainable customer loyalty. The following outlines the key steps in this approach:
Shift from Short-Term to Long-Term Focus
Loyalty to Trader isn’t built in a month. Currently, the rewards model focuses on short-term, measurable behaviours; such as placing trades that accumulate into trading volume, which is then converted into monthly cash back.
Shift from Short-Term to Long-Term Focus
Loyalty to Trader isn’t built in a month. Currently, the rewards model focuses on short-term, measurable behaviours; such as placing trades that accumulate into trading volume, which is then converted into monthly cash back.
Shift from Short-Term to Long-Term Focus
Loyalty to Trader isn’t built in a month. Currently, the rewards model focuses on short-term, measurable behaviours; such as placing trades that accumulate into trading volume, which is then converted into monthly cash back.
However, true loyalty is reflected in consistent engagement over time. The aim is to move away from predictable, short-term incentives and instead encourage ongoing positive behaviours that support long-term retention.
However, true loyalty is reflected in consistent engagement over time. The aim is to move away from predictable, short-term incentives and instead encourage ongoing positive behaviours that support long-term retention.
However, true loyalty is reflected in consistent engagement over time. The aim is to move away from predictable, short-term incentives and instead encourage ongoing positive behaviours that support long-term retention.
Evolve from Transactional to Engagement-Based Rewards
While transactional rewards (such as cash back based on trading volume) are effective to a point, they form the sole component of the current program. Research shows that 77% of programs relying exclusively on this model fail to meet their goals within two years.
Evolve from Transactional to Engagement-Based Rewards
While transactional rewards (such as cash back based on trading volume) are effective to a point, they form the sole component of the current program. Research shows that 77% of programs relying exclusively on this model fail to meet their goals within two years.
Evolve from Transactional to Engagement-Based Rewards
While transactional rewards (such as cash back based on trading volume) are effective to a point, they form the sole component of the current program. Research shows that 77% of programs relying exclusively on this model fail to meet their goals within two years.
Moving towards engagement-based rewards includes recognising a broader range of positive customer actions through a points-based system. These points can be redeemed for tailored rewards, allowing the program to guide and reinforce the behaviours that matter most to the business.
Moving towards engagement-based rewards includes recognising a broader range of positive customer actions through a points-based system. These points can be redeemed for tailored rewards, allowing the program to guide and reinforce the behaviours that matter most to the business.
Moving towards engagement-based rewards includes recognising a broader range of positive customer actions through a points-based system. These points can be redeemed for tailored rewards, allowing the program to guide and reinforce the behaviours that matter most to the business.
Define Profitable Customer Behaviour
A crucial step is identifying the behaviours that make a customer profitable. By accounting for acquisition costs and ongoing service expenses, Trader can establish a clear picture of the trading volume and duration required to reach profitability.
Define Profitable Customer Behaviour
A crucial step is identifying the behaviours that make a customer profitable. By accounting for acquisition costs and ongoing service expenses, Trader can establish a clear picture of the trading volume and duration required to reach profitability.
Define Profitable Customer Behaviour
A crucial step is identifying the behaviours that make a customer profitable. By accounting for acquisition costs and ongoing service expenses, Trader can establish a clear picture of the trading volume and duration required to reach profitability.
Defining profitable behaviour creates a foundation for a loyalty program that actively incentivises customers who meet this profile. Introducing structured milestones and stopgaps along this journey turns the loyalty program into a tool for nurturing high-value, long-term customers.
Defining profitable behaviour creates a foundation for a loyalty program that actively incentivises customers who meet this profile. Introducing structured milestones and stopgaps along this journey turns the loyalty program into a tool for nurturing high-value, long-term customers.
Defining profitable behaviour creates a foundation for a loyalty program that actively incentivises customers who meet this profile. Introducing structured milestones and stopgaps along this journey turns the loyalty program into a tool for nurturing high-value, long-term customers.
Enable Organic Growth Through Advocacy
Finally, growth should be fuelled by authentic customer advocacy. Referral incentives provide a strong opportunity for this; when customers are rewarded meaningfully and can earn points through successful referrals, they’re more likely to share their positive experiences.
Enable Organic Growth Through Advocacy
Finally, growth should be fuelled by authentic customer advocacy. Referral incentives provide a strong opportunity for this; when customers are rewarded meaningfully and can earn points through successful referrals, they’re more likely to share their positive experiences.
Enable Organic Growth Through Advocacy
Finally, growth should be fuelled by authentic customer advocacy. Referral incentives provide a strong opportunity for this; when customers are rewarded meaningfully and can earn points through successful referrals, they’re more likely to share their positive experiences.
Encouraging customer reviews on the platform and social media further amplifies Trader’s message, delivering a more credible and engaging narrative than traditional marketing efforts.
Encouraging customer reviews on the platform and social media further amplifies Trader’s message, delivering a more credible and engaging narrative than traditional marketing efforts.
Encouraging customer reviews on the platform and social media further amplifies Trader’s message, delivering a more credible and engaging narrative than traditional marketing efforts.
The Customer Journey
Combining this strategy across the Trader customer lifecycle, we can envision what the customer’s journey through this Loyalty Engine will look like:
The Customer Journey
Combining this strategy across the Trader customer lifecycle, we can envision what the customer’s journey through this Loyalty Engine will look like:
The Customer Journey
Combining this strategy across the Trader customer lifecycle, we can envision what the customer’s journey through this Loyalty Engine will look like:
The Path Forward
To build a stronger, more profitable relationship with customers, we introduced a structured loyalty strategy that transforms casual users into strong brand advocates, built through 4 key steps:
The Path Forward
To build a stronger, more profitable relationship with customers, we introduced a structured loyalty strategy that transforms casual users into strong brand advocates, built through 4 key steps:
The Path Forward
To build a stronger, more profitable relationship with customers, we introduced a structured loyalty strategy that transforms casual users into strong brand advocates, built through 4 key steps:
Recognise: Understand which trading behaviours make us the most profit.
Rebuild: Extrapolate those behaviours into a framework and milestones for customers to meet.
Recognise: Understand which trading behaviours make us the most profit.
Rebuild: Extrapolate those behaviours into a framework and milestones for customers to meet.
Recognise: Understand which trading behaviours make us the most profit.
Rebuild: Extrapolate those behaviours into a framework and milestones for customers to meet.
Reward: Award points when those behaviours are met, and allow redemption of rewards that meet the customer’s needs.
Refer: Allow customers to share their wins for more points, fostering organic growth & ultimately establishing brand loyalty.
Reward: Award points when those behaviours are met, and allow redemption of rewards that meet the customer’s needs.
Refer: Allow customers to share their wins for more points, fostering organic growth & ultimately establishing brand loyalty.
Reward: Award points when those behaviours are met, and allow redemption of rewards that meet the customer’s needs.
Refer: Allow customers to share their wins for more points, fostering organic growth & ultimately establishing brand loyalty.
The Loyalty Ecosystem: Points, Credits, Objectives, Badges & Lifetime Status
The Loyalty Ecosystem: Points, Credits, Objectives, Badges & Lifetime Status
The Loyalty Ecosystem: Points, Credits, Objectives, Badges & Lifetime Status
Phase 2
While the previous phase identified the opportunity to turn traders into advocates, the next step is to recognise the trading behaviours that will rebuild the program into a sustainable profit centre.
Phase 2
While the previous phase identified the opportunity to turn traders into advocates, the next step is to recognise the trading behaviours that will rebuild the program into a sustainable profit centre.
Phase 2
While the previous phase identified the opportunity to turn traders into advocates, the next step is to recognise the trading behaviours that will rebuild the program into a sustainable profit centre.
Value
Loyal customers bring direct value to the platform through consistent depositing and trading in higher volumes.
Value
Loyal customers bring direct value to the platform through consistent depositing and trading in higher volumes.
Value
Loyal customers bring direct value to the platform through consistent depositing and trading in higher volumes.
Engagement
Loyal customers are engaged with the platform both through their total time trading, as well as the frequency of visits over their lifetime.
Engagement
Loyal customers are engaged with the platform both through their total time trading, as well as the frequency of visits over their lifetime.
Engagement
Loyal customers are engaged with the platform both through their total time trading, as well as the frequency of visits over their lifetime.
Program Atoms
The smallest building block of the Loyalty Ecosystem will be Atoms:
Trader Points
This metric manages the redemption of rewards. Users are awarded points for transactional exchanges i.e. just making a deposit and placing trades, which bring direct value to Trader.
Trader Points
This metric manages the redemption of rewards. Users are awarded points for transactional exchanges i.e. just making a deposit and placing trades, which bring direct value to Trader.
Trader Points
This metric manages the redemption of rewards. Users are awarded points for transactional exchanges i.e. just making a deposit and placing trades, which bring direct value to Trader.
Status Credits
This metric manages how users move up and down in tiers. Users are awarded with credits for engaging in any positive behaviours (depositing, trading, successful registration, daily sign-in, referrals etc.)
Status Credits
This metric manages how users move up and down in tiers. Users are awarded with credits for engaging in any positive behaviours (depositing, trading, successful registration, daily sign-in, referrals etc.)
Status Credits
This metric manages how users move up and down in tiers. Users are awarded with credits for engaging in any positive behaviours (depositing, trading, successful registration, daily sign-in, referrals etc.)
The diagram below illustrates the relationship between Trader Points and Status Credits. As users accumulate more Status Credits through engagement-based behaviours, they progress to higher tiers. Each tier increases the multiplier applied to Trader Points earned, creating a compounding effect. This exponential growth in point accumulation drives greater value for our client.
The diagram below illustrates the relationship between Trader Points and Status Credits. As users accumulate more Status Credits through engagement-based behaviours, they progress to higher tiers. Each tier increases the multiplier applied to Trader Points earned, creating a compounding effect. This exponential growth in point accumulation drives greater value for our client.
The diagram below illustrates the relationship between Trader Points and Status Credits. As users accumulate more Status Credits through engagement-based behaviours, they progress to higher tiers. Each tier increases the multiplier applied to Trader Points earned, creating a compounding effect. This exponential growth in point accumulation drives greater value for our client.
Program Molecules
To introduce drive and motivation to user’s trading behaviours, Daily & Weekly Objectives gives users additional motivation to stay on platform and complete a set of objectives that will award them a bonus amount of Status Credits.
Program Organism
To acknowledge users for continued engagement, and knowing the realistic nature of traders, Badges are awarded to users that complete a series of Objectives, trade goals and other positive behaviours. These badges can be accumulated to guarantee a Lifetime Status, meaning users will not fall below a particular tier for prolonged periods of inactivity.
Prototype
To view this concept in action, and see the lifecycle of a trader actively involved in the new loyalty program, click through the prototype below:
Prototype
To view this concept in action, and see the lifecycle of a trader actively involved in the new loyalty program, click through the prototype below:
Prototype
To view this concept in action, and see the lifecycle of a trader actively involved in the new loyalty program, click through the prototype below:
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