Rewards Network, a provider of dining rewards opportunities to leading loyalty programs, needed a disciplined approach to business case development for loyalty program partnerships. Establishing each partnership entailed considerable implementation costs, and controlling the risks associated with poor program performance was a strategic business objective. Jerry Hughes structured and implemented a loyalty program partnership methodology to systematically evaluate partnership risk and establish ongoing program risk management practices.
Approach
- Standardize program implementation processes and costs
- Segment loyalty program types and program members
- Identify value drivers and measure value created by member segments
- Assess marketing programs to be delivered by prospective partners and estimate specific value impacts
- Identify principal risks to anticipated performance
- Establish investment return requirements and implement formal business case review processes
Results
- Increased partner channel revenues by 300% in three years
- Increased partner channel ROI by more than 15% points
