Page 43 - Retail Pharmacy Magazine October 2020

CPD ACTIVITY 41 What’s the reward from loyalty? 1 CPD CREDIT ensure you’re happy with the outcome. The phases and questions you should consider include: Strategy and structure • What are the program objectives and how will you measure success? • Ensure alignment with buying, category management, marketing, HR and operations before building the program. • Define the program framework and store/customer proposition. What do you want the program to do? • Set appropriate resources and budget allocation. Operational performance • You need to ensure your staff support and understand the loyalty focus. • Good store program execution is imperative for success. • You need a stable platform for the delivery of member rewards and benefits. • Make sure you have the right data collection and management platform. • It’s essential to develop an annual promotional program to support the objectives. Engaging members • Develop a schedule with meaningful and relevant rewards. • Build in ad hoc recognition and reactivation campaigns. • Ensure exceptional experience across all touch points with the customer. Marketing communication • Branding: what is your program called and what does it look like? • Integrate the program into overarching marketing strategy. • Deliver relevant and timely targeted communications. Reporting and business intelligence • Benchmark and measure program performance. • Share the data with staff. • Ensure you complete marketing and campaign analysis. • Undertake database analysis to understand your customers and their behaviour. As pharmacy continues to experience continued disruption, initiatives such as a loyalty program could be considered a key part of the marketing mix – to communicate with customers one on one, but only if it meets your organisational goals and is implemented and maintained on the basis of achieving these goals. Otherwise, the result may be an expensive discount card. Loyalty and rewards programs can be a powerful tool to maximise customer value and retention. References 1. iriworldwide.com/IRI/media/OmnichannelJourney.pdf 2. mckinsey.com/business-functions/marketing-and-sales/our-insights/survey- australian-consumer-sentiment-during-the-coronavirus-crisis 3. hbr.org/2014/10/the-value-of-keeping-the-right-customers 4. hbr.org/2002/07/the-mismanagement-of-customer-loyalty 5. searchdatamanagement.techtarget.com/definition/RFM-analysis Accreditation number: A2010RP4 (Exp. 30/09/2022) This activity has been accredited for 0.5 hours of Group One CPD (or 0.5 CPD credit) suitable for inclusion in an individual pharmacist’s CPD plan, which may be converted to 0.5 hours of Group Two CPD (or 1 CPD credit) upon successful completion of the associated assessment activity 1. ‘The omnichannel journey’ report by IRI Worldwide indicates that: A) ‘Loyal customers have committed all they can to a business’. B) ‘Communicating with customers to engage and influence their behaviour is not worthwhile. C) ‘Even the most loyal customers pose significant upside potential for retailers’. D) ‘Reviewing customer behaviour is of no benefit to the management of a business or marketing strategy’. 2. McKinsey’s ‘Consumer Insights Pulse Survey’ shows that the Australian population are: A) Consuming more digital media. B) Using more online services. C) Doing more online shopping than ever before. D) All the above. 3. Harvard Business Review’s assessment of available research suggests new customer acquisition costs are: A) The same as customer retention. B) Double the cost of customer retention. C) Five to 25 times more expensive than customer retention. D) 100 times more expensive than retention. 4. The four basic customer-value maximisation steps include: A) Rewarding current customers. B) Growing current customers. C) Activating new shoppers. D) Reactivating customers that have lapsed. E) All the above. 5. RFM analysis stands for: A) Reactivation for monetary value. B) Recency, frequency and monetary. C) Realising full market value. D) Retail, financial and monetary. 6. The elements you should consider when building a loyalty or rewards program include: A) Strategy and structure, and operational performance. B) Engaging members, and marketing communication. C) Reporting and business intelligence. D) Strategy and structure, operational performance, engaging members, marketing communication, and reporting and business intelligence. E) Reporting and business intelligence, and strategy and structure. RETAIL PHARMACY • OCT 2020