Loylogic has partnered with celebrated thought leader M. Tamra Chandler to introduce a groundbreaking approach to employee recognition: The 100 Moments That Matter – exclusively designed for Ultimate.  

Tamra has devoted her life's work to elevating human and team performance through practices that put people first, and The 100 Moments That Matter is a unique and powerful platform for achieving these goals.

For the first time, organizations worldwide will have access to a curated, science-backed framework for employee motivation, integrated directly into Ultimate, Loylogic’s Points as a Service (PaaS) platform. This innovative framework ensures that HR teams can recognize employees in the right way, at the right time, and for the right reasons, without the complexity of managing vendors, currencies, or logistics across multiple markets.

A first-of-its-kind framework for employee motivation

Tamra Chandler has redefined how organizations drive engagement, performance, and workplace culture. Drawing from her decades of research, consulting, and thought leadership, she has now created the first-ever curated list of 100 Moments That Matter – a framework that identifies the key recognition moments proven to drive employee engagement and retention.

This exclusive framework has been developed specifically for Ultimate, making it the only rewards platform with which companies can seamlessly embed a research-backed recognition strategy into their employee motivation programs.

Unlike generic recognition programs that focus solely on tenure or performance-based bonuses, The 100 Moments That Matter provides a structured yet flexible approach that HR teams can use to inspire their people with meaningful, personalized rewards.

Ultimate: removing complexity, maximizing impact

Global companies often struggle to maintain consistent, impactful employee recognition programs across different regions, facing challenges such as multiple suppliers, fragmented platforms, and operational inefficiencies. Ultimate solves this by offering:

- A single, seamless platform for all employee rewards globally
- Ultimate Stars – a global rewards currency that employees can redeem for experiences, merchandise, travel, gift cards, and more via Loylogic’s award-winning marketplace
- Automated, AI-driven recommendations that match recognition moments with meaningful rewards
- Seamless integration into HR systems, eliminating manual processes and multiple vendors

A data-driven approach to employee engagement

By integrating Tamra’s exclusive The 100 Moments That Matter framework, Ultimate ensures that recognition isn’t an afterthought, but rather  a strategic tool that creates thriving cultures and delivers differentiated business performance.

This unique collection of moments focuses on recognizing and rewarding meaningful actions and behaviors that contribute to an exceptional and inspiring workplace culture, driving employee connections and organizational success.

Each of the 100 Moments That Matter is grouped into 25 themes, such as:

- Nice Job!: Recognizing exceptional performance, such as consistently delivering high-quality work or meeting deadlines under difficult circumstances.
- The Best of Us: Rewarding collaboration and resilience, like mediating between colleagues to resolve an issue or leading by example during challenging times.
- Delighting Customers: Celebrating customer-centric behaviors, including exceeding customer expectations through service or solving long-standing customer issues.
- Helping Them Grow: Supporting team development by intentionally transferring skills and know-how to others or coaching and mentoring team members to succeed.
- Innovation: Encouraging creative thinking, such as proposing new and novel ways of working or exploring possibilities while constructively challenging the status quo.

These moments prompt employees to think beyond familiar recognition themes while creating a structured, scalable approach to appreciation.

"Companies today recognize that engaged employees drive success, but traditional reward programs are often reactive, transactional, and disconnected from what truly motivates people," said Gabi Kool, CEO of Loylogic.

"With the launch of The 100 Moments That Matter exclusively within Ultimate, we are providing HR teams with the first-ever framework that combines behavioral science, AI-driven automation, and frictionless global rewards all in one solution. This is not just about offering rewards; it’s about ensuring they create real impact."

So how does Ultimate go beyond just providing rewards? By ensuring that recognition becomes a meaningful aspect of the culture, and that it flows with the rhythm of work. . Further, Ultimate helps your employees take notice of the contributions of others and say, “I see you and the positive impact you have on our team.”

Key capabilities include:

- AI-driven recommendations that suggest relevant moments for recognition
- Global scalability, making it easy for companies to maintain a unified rewards strategy across all locations

Looking forward, Ultimate peer-to-peer recognition will also be developed, enabling employees to reward each other instantly to further improve motivation and drive team-based recognition.

Transforming employee motivation for the future

According to the 2025 US Appreciation Index Report, employees who feel valued at work are significantly more engaged, productive, and likely to stay with their organization. However, many businesses lack a structured approach to recognition, leading to inconsistency and missed opportunities to build loyalty.

"By creating The 100 Moments That Matter specifically for Ultimate, we are giving companies a pathway to a recognition culture that is not only meaningful but also effortless to implement at scale," said Tamra Chandler.

"I’m thrilled to partner with Loylogic and their Ultimate PaaS solution to redefine workplace recognition. This is the future of employee motivation: one that is rooted in science, powered by technology, and designed for real human connection."

Tamra will share more insights on the partnership at the HR World Summit in Lisbon this May, where she will present the framework alongside Loylogic leadership. We have a limited number of exclusive tickets available. Register your interest now and be part of the conversation shaping the future of workplace recognition.

Companies looking to transform their approach to employee engagement and create a truly strategic rewards program can learn more by visiting Ultimate.one and booking a demo today.

A little bit about M. Tamra Chandler

Tamra Chandler is a globally recognized thought leader, speaker, and author who has devoted her career to elevating human and organizational performance through people-first practices. With over three decades of experience in business transformation, she has revolutionized how organizations approach performance management, feedback, and employee recognition.

Named one of Consulting Magazine's "Top 25 Consultants" in both 2007 and 2014, Tamra founded PeopleFirm LLC in 2009, leading it to recognition by Forbes as one of "America's Best Management Consulting Firms." She is known for her groundbreaking books "How Performance Management is Killing Performance" and "Feedback (and Other Dirty Words)," as well as creating the innovative "100 Moments That Matter" framework—a research-backed approach to meaningful employee recognition.

Through her down-to-earth style and results-driven approach, Tamra helps organizations discover the sweet spot where inspired people and inspired performance intersect. Her work demonstrates that when companies create environments fostering genuine human connection, meaningful feedback, and purposeful recognition, extraordinary results naturally follow. From nonprofits to multinational corporations, her transformative approaches continue to shape how forward-thinking organizations build cultures where both people and performance thrive.

https://www.tamrachandler.com/

Recognition is more than a thank you. It is the foundation of a thriving workplace, driving motivation, engagement, and performance.

In this episode of Rewarding Conversations, we explore how Ultimate, Loylogic’s Points as a Service (PaaS) platform, is combining a science-backed employee recognition framework with seamless technology to help businesses make appreciation effortless, structured and truly meaningful.

Gabi Kool, Chief Executive of Loylogic, and celebrated thought leader and renowned workplace culture expert Tamra Chandler reveal how an exclusive 100 Moments That Matter framework provides a science-backed way to transform how organizations recognize and reward their people. They discuss why traditional recognition programs often fall short, how companies can move beyond transactional rewards, and what it takes to build a culture where appreciation becomes a habit.

If you are an HR leader, a business executive, or someone passionate about workplace culture, this conversation will give you fresh perspectives and practical strategies for redefining employee motivation.

Listen now to discover how recognition can drive engagement, retention, and high performance without the usual complexities of managing multiple reward platforms and vendors.

Tamra will share more insights on the partnership at the HR World Summit in Lisbon this May, where she will present the framework alongside Loylogic leadership. We have a limited number of exclusive tickets available. Register your interest now and be part of the conversation shaping the future of workplace recognition.

Companies looking to transform their approach to employee engagement and create a truly strategic rewards program can learn more by visiting Ultimate.one and booking a demo today.

Podcast Transcript:

01:56: What's the background to this partnership?

Gabi Kool: "Yes, happy to kick this one off. Basically, I had the pleasure of meeting Tamra. I think it was last year in Switzerland. We were both at an HR conference at the time, and I really, really enjoyed listening to her while she was speaking on stage about many things related to employee motivation, how to build high performing workplaces.

"While I was listening to that, I thought, what a perfect fit that would be for what we were at that stage, in the early stage of building with our Ultimate solution. So, I thought I would see if I could tempt her to be our global brand ambassador for Ultimate, and also to bring her thought leadership as a way of solidifying the science in our platform. So, I tried my luck, introduced myself and explained what Ultimate was about. And so that was how kind of our first interactions started. And here we are."

Tamra Chandler: "I would say it wasn't that hard of a sell, Gabi, because, you know, my passion is about creating workplace environments where people just really thrive and can show up and be themselves. That means having a workplace where gratitude and recognition are just how we do things around here. And, you know, anytime we can provide tools or assets that make that easier, it just fuels that kind of environment. Ultimate, to me, was like a no brainer. It just, it removes so many of the barriers, and it creates that platform to deliver a healthy and inclusive and warm environment."

03:43: That's the perfect segue into the first question for you, Tamra, focusing in on your specialist area. Why do you think organizations often struggle with creating meaningful employee recognition?

Tamra: "Yeah, that's probably one of the bigger questions, right? And I think we have to kind of step back and say, well, what are we trying to do? And we're trying to create a new habit. Recognition needs to become a habit, and that habit needs to start with the individuals that make up the organization. They need to start to adopt a way of shifting the organization culture, to accept this is, again, the way we do things around here.

"I often like to think about it as mindset, methods and muscle. And we always say you have to start with mindset. You have to sort of check in with, do we have a belief that recognition is a good thing? Do we understand the value and the impact that a culture that swims in gratitude and appreciation provides? Do we even understand some of the fundamentals, like when we talk about frequent recognition? I mean, that's an important question, because when you look at the science behind it, you'll see that there's this interesting gap. It's a paradox of some sorts between how frequently we want to be appreciated or recognized and how frequently we engage in offering recognition and appreciation. There's a Delta there. With mindsets, we have to start by aligning on why this is important, and what it would look like, and why it's important for us to have it in the culture.

"Once we've shifted our mindset to wrap around that concept, then we can start to think about methods and muscle and, you know, Ultimate provides us with this fabulous method. It gives us this platform to start to ease into that habit, to make it easy, to start to create this recognition culture, and then we go from there.

"Now, when we talk about muscle, if you ever look at any of my content, you'll see I always talk about leaders go first. And I think what's so important here is that once we've shifted the mindset, we've created the methods we need leaders to lead the way. We need them to start to engage in a way that says this is how we work here. This is how we operate, and this is the way that we recognize and celebrate the work that everyone brings each and every day."

06:12: And is that the inspiration behind the 100 moments that matter framework?

Tamra: "Yeah, I think when we started talking about the 100 moments, what I really wanted to do is bring to the table information, you know, the helpful information that provides the platform for high performing teams and inspired people. So how do you do that? I really leaned into what I know through the science. What do I know through my 30 plus years working with organizations to create inspired organizations to inspire people? But the aim was not just to provide this pick list for people, which is somewhat what it is, but to help us think beyond the common ideas, to help us really kind of broaden the topics that we might, you know, recognize or notice that are being offered within the organization that we see people doing every day.

"I think we fall into old habits of recognizing the same. Oh, you did a great customer presentation, or you did this, but there's so much more goodness that happens in an organization, and I think we need to broaden our horizons. So, the 100 moments was about how do we do that? How do we help people think more broadly about all the good things they're seeing and witnessing when they show up for work every day, or they dial into work every day, or, you know, however they're engaging?"

07:33: That, again, leads on to an obvious next question, which is how does this framework align with modern workforce trends such as the demand for more personalized and meaningful recognition, and also, how does it tie into the kind of modern ways of working, hybrid work and remote working, etc?

Tamra: "What's interesting about that question is sort of asking yourself, what has changed? Humans haven't changed, but their expectations have changed when they're engaging in a workplace.

"What I mean by that is, if you look at human motivation, we have craved being part of something, this idea of wanting to be included in a tribe, of being appreciated by our tribe that's as old as the human race. But for years in the business world, we really tried to separate the human side of the workplace from the more business side of the workplace. We tried to draw a line, if you will, between the head and the heart. So, I think what has changed again is that, thankfully, we're more enlightened. Now most of us have a greater understanding that separating the head and the heart is a fallacy. We can't really separate it, and that if we fail to really see to the human side of people, we diminish them, we put them in a sub-optimal state. They might be operating from a place of fear or just indifference, right?

"When you look at some of the engagement scores, with our more enlightened state, as we're leading organizations and people, we need to understand the importance of helping people know that we see them. That we see the value that they're bringing, that we are attending to their heart and their head. And that begs us to start to create these environments where we can celebrate and recognize people that we can lean into practices that say thank you and recognize them for the contributions. And when we do that, amazing things happen. We put people in that optimal state where they're showing up as their whole self, where they're energized and excited about the work. And those types of things create this whole energy and performance, and amazing things really happen.

"Back to your original question, Austin, but the 100 moments provides us this framework. It gives us these science backed prompts that help us to be better at noticing that goodness and seeing to the whole person, and making them feel included, that you’re important, you're part of the tribe. That is some powerful stuff."

10:06: Indeed, extremely powerful. I think everybody would agree with that. So, Gabi, bringing you in here, and given everything Tamra has mentioned there, how does Ultimate address the common challenges companies face, and how do you kind of go about creating an effective global recognition program?

Gabi: "When we were looking around to develop Ultimate and we were talking to HR leaders and kind of building our own hypothesis of what was kind of mostly needed in that space, one of the observations that we had at the time, Austin, was that you will find great, great HR leaders out there, of course, in many, many kinds of companies, and also great leaders in organizations who want to do the right thing. But if you looked at what the HR departments often had to do when it came to incentive programs, especially multinational organizations, it was very often that a lot of the energy that they had to spend on it was more going to the operational part, finding the right kind of tech partnering country, A, B, C, D, E, the right kind of incentive partner in the in these kind of countries as well. The space where the HR leaders that we spoke to really wanted to spend their time was building that kind of right designs and programs where, to Tamra's point about the head and the heart, they were rewarding the micro moments.

"When we set out to develop Ultimate, we wanted to take care of that by building a platform that takes, especially for multinational organizations, that operational burden away, so that we can enable, via our platform, the right kind of design elements for the right program for your organization, as an HR leader.

"We've made a lot of really great progress so that it's now very simple for an HR leader to just buy the relevant number of motivational currencies via the platform to then distribute it in the manner that best suits, without having to worry about the operational elements."

12:27: So, Tamra, coming back to the 100 moments that matter, could you share a few examples for us, please?

Tamra: "We've designed the 100 moments to really think about what are these different sort of practices that we could have, or sort of themes. You're going to see things that are typical, like, you know, nice job is one of our themes. A moment under that is achieving a notable impact of performance. That's pretty common, but we tried to go well beyond that. So, another of our categories is called the Best of Us. And one of my favorites there is operating without judgment or blame. And I know in my best days, I do that, but you know, we don't always achieve that every day.

"Resilience, owning it, really thriving an environment of uncertainty, is another one I really like, right, called I'll be There. And one of the moments is generously giving your time to support others. You know those colleagues who lean in when you need that help and wanting to say thank you and recognize that we have inclusion as one of our categories. And one of my favorites in that is creating opportunities for others to shine.

"Our category of Authentically Human has some good ones, like displaying enthusiasm, passion and joy at work and just saying, thank you to those people that bring that energy. So those are just a few, Austin."

14:01: So how do moments like these help organizations kind of go beyond that transactional rewards culture toward kind of building a culture that that's full of engagement and loyalty?

Tamra: "Gabi spoke to this, as far as the micro moments go, is this idea of the personalization. We're really looking to make it easy to recognize those moments, to take a light pause, to say, I see you. I see this value you bring. This isn't a transaction. It's a personal reflection. There's a reason we call them moments, or even micro moments, right? Because that's what it is. It's a simple moment to pause, to do a little noticing, and to say, thank you."

14:51: That sums it up beautifully. And is it true that HR leaders have, often, not in all cases, but often have struggled to get buy in from leadership when it comes to investing in recognition? And does this new framework, this science backed framework, help in changing the discussion around the investment?

Tamra: "Well, I certainly hope it does. Sadly, sometimes it's hard to get support for this, even though, you know, there's a very strong business case. If you look at the science behind recognition, you look at the benefits it brings, when people are frequently recognized, when they feel connected, they're engaged, and when you're engaged, you perform better. So, there's a lot of moments in here that are team-based because when our teams are engaged, and we're really kind of moving as a high performing team, that's when we really drive performance for an organization.

"So, there's a lot here from a business case, but sometimes you don't get leaders who really connect with those numbers, or necessarily believe those numbers, and that can make it difficult. But I think there's a couple of things happening here. I think Ultimate lowers some of the barriers, as Gabi's talked about, to ease into this. So that improves your business case, because it takes away some of the things that have made it hard in the past. And then, we're creating these moments that make it easy and light and not adding extra burden to managers or others. So, there's a lot of goodness that's happening here.

"My one little tip for leaders is, if you're having trouble with a with a business leader, sometimes what can be most powerful is to sit and talk with business leaders about their own history, and get them talking about the times that they were recognized and the impact that had on, their own experiences, or the impact that might have even had on their career. And I think if we if, sometimes, if the if the business case strategy doesn't work. Sometimes the heart strategy works and gets them really thinking about how this is important in creating those same types of experiences for the people in their own organization. It can be difficult, but I think you can come at it from both those ways, and Ultimate makes the business case easier, and we make it lighter for your managers, and we can really impact, you know, the experience for your people, for sure."

17:28: So, what you're saying there is that there's a very human, centered approach in your framework?

Tamra: "Yes, that is such a simple way to say it!"

17:42: Gabi, coming to you, how does Ultimate take that human centered approach and combine it with technology to create a platform that is truly transformational?

Gabi: It's an interesting one, right? We've now got these beautiful 100 moments built into a framework, and then the other part that you need to do in a platform like Ultimate is make it very easy for the HR director to bring this alive in an organization and administrate. But also, as we know, there's an enormous power in the whole peer-to-peer recognition area of these kind of incentives, especially if I can give, as an employee very easily, some Stars as a form of recognition for somebody in my team or my organization who has done something good for the company or good for me or basically helped me out.

"Now, how do you enable that part? It's not so easy if you've got a team of 5,000 employees to educate everybody about the 100 moments and exactly which moments to use, and when. So, where technology then comes into play, and that's what we're working out and rolling out as we speak, is, how can you then bring an AI component, for example, where somebody can describe what somebody did for them, and then in the back end of our platform, it automatically marries that to the right moment from the framework. So, when an HR director looks at kind of how the organization is recognizing and rewarding each other for the moment in there, are there certain blind spots, let's say, in the organization of behaviors that you would like to stimulate but that are never somehow either acknowledged or maybe displayed, can also be the case.

"So, we see a role for AI in there to make that rewarding mechanism easy for employees. We've also seen it in our own organization. Before we had built Ultimate, we had our own 'thank yous', where people could, on our internal platform, thank each other for certain activities. Everybody had their own mini budget of points that they could give away to their colleagues on a monthly basis. And we've seen, therefore, the power of that part now, where the technology comes into play, that's kind of, I think, where we make that as frictionless, and as easy as possible, so that there's no complicated steps in the way of enabling that.

"The other part, of course, is embedding this in the existing HRMS platforms that organizations are using. The more we can embed Ultimate in all the leading HRMS platforms, of course, that also makes it much easier for organizations to adopt it?"

20:43: I want to pick up on something you've mentioned there, which is around the whole rewards and incentive side of things. So how does Loylogic's expertise developed over more than two decades of creating rewards and incentive solutions position Ultimate to serve companies of all industries and sizes globally?

Gabi: "Yes, it's an interesting question, because our history lies very firmly in the consumer loyalty space. So we've been around for two decades, as you mentioned, supporting the largest either frequent flyer programs in the travel industry, largest bank loyalty programs with some of the most notable brands in the world there, as well as fast moving consumer goods or the CPG kind of brands with their loyalty initiatives, but it was always basically consumer loyalty, where our main job as a company was to support our clients, so these program owners could look after their best customers. So, when these companies want to reward their best customers, it was our job to get the right incentive at the right time, in the right kind of user experience, in the hands of their most precious asset, their customers, so that it positively influences the behavior of those customers via very memorable experience, and make these customers feel warm in their heart.

"Now, if you translate that to the employee motivation space, where we are newly entering with our solution of Ultimate, we're not dealing with an organization's best customers, but arguably with their other most important asset, their employees, their human capital. So also here, there's a very strong parallel with giving the right incentives to the people at the right time in a way that's fun, and how they can also recognize and incentivize their colleagues, so that it cements that relationship between the organization and the employee. So, while there's a slightly different angle to it, there's a lot of learnings that we take from our two decades of working on the business to consumer loyalty side into this B to E, employee motivational side.

"If you then combine it with, of course, the fact we have global technology, we have global content available for these kinds of programs that we support, we really thought, how can we then enable that to be a force to reckon with, to help these organizations around the world?"

23:21 Bringing everything together, what do you hope to achieve with Ultimate? What vision do you have regarding Ultimate's role in shaping the global motivation rewards industry?

Gabi: "Well, we're ambitious people Austin, so we've got high hopes! Basically, we would love to be THE global rewards currency in the employee or motivational space. And basically, that means that when these employees get recognized by their peers or by their managers or by the organization, they get something that they really love, rather than a well-meant incentive that might not be spot on for an employee. We think that giving them these Ultimate stars and then having a global reward shop with different kind of content for every market in that platform, and it doesn't matter if it's merchandise or gift cards or travel or experiences or like, with like the sky is the limit in there, is exciting. So, we that's what we are hoping for, dreaming of, and basically working really hard for to make our steps in that journey."

24:26: Tamra, similar question to you. What excites you most about the potential of the 100 moments that matter to transform workplace cultures and motivation?

Tamra: "I started off talking about my passion for creating those kinds of workplaces. And what I'm so hoping is that the 100 moments help people realize how often they see these good things happening around them. You know, in my feedback book, we talk about the fine art of noticing, and it is an art we're not very good at it. And. So I'm hoping that the people read these 100 moments and they're like, wow, you know, I never thought about that goodness. I see that happening over here or over there, but I'm going to start recognizing it now, right? I hope it inspires them to think about what really matters and how they can be part of an environment where people feel included, seen, appreciated, that it becomes this powerful way of celebrating so much that happens that we just sort of let go by us. But instead of letting it go by, we start noticing it and taking that moment to recognize it."

25:38: Indeed, it's a fascinating, kind of almost melting pot, isn't it, of art science, AI technology, the human centered approach, that that could be really impactful and have that enduring impact on employee engagement, I guess so. My final question to both of you is, what message would you like to leave for companies and HR teams seeking to elevate their approach to employee motivation and recognition?

Tamra: "I'm really wanting to help organizations build a true culture of recognition. And you know what I mean by that is that is the way we work. You know that's what culture means. This is how we do things around here. And what I think is so powerful about what we're bringing to the market, between the platform and the framework and the 100 moments, is we're making it easy to create that foundation for that recognition culture.

"To me, recognition culture goes beyond the Ultimate 100 moments. It goes into the shout outs in a meeting, the pauses during a day to verbally recognize somebody. But I think what's so important about it is it truly becomes that platform that can fuel that culture, where we learn those new habits, where we start to create that energy that just sort of builds over time. And the Ultimate platform that's easy to implement, that's easy to deploy, that gets us thinking more broadly, brings that to the market. It's a powerful place to start."

27:18 And Gabi?

Gabi: "We all spend so much time at our workplace, right? So, my big hope for this whole joint initiative is that HR leaders are truly inspired by these moments.

"When we looked at the list of 100 moments, and we'd like to think that we are, of course, recognizing our team well, and that we are actively doing all the right stuff, day in, day out, I can tell you, when we looked at the list, there were at least 60 moments where I thought, yes, that's a great thing, I should recognize it more. I should be more mindful of paying attention to that and recognizing our team. The same feeling was felt in our own leadership team. I think you can take a lot of inspiration from that platform.

"I would really encourage all the listeners to this podcast go and explore the platform that we've put together with Ultimate and look at all these moments and reflect on them. And then, of course, we would love to hear the feedback from HR leaders around the globe while we're on this journey to further build out this platform. They are part of that journey with us. In the end, if we can help a lot of HR leaders in their own journeys it would be great. That's my hope and the ambition and what I believe we can achieve."

Recognition is more than a thank you. It is the foundation of a thriving workplace, driving motivation, engagement, and performance.

In this episode of Rewarding Conversations, we explore how Ultimate, Loylogic’s Points as a Service (PaaS) platform, is combining a science-backed employee recognition framework with seamless technology to help businesses make appreciation effortless, structured and truly meaningful.

Gabi Kool, Chief Executive of Loylogic, and celebrated thought leader and renowned workplace culture expert Tamra Chandler reveal how an exclusive 100 Moments That Matter framework provides a science-backed way to transform how organizations recognize and reward their people. They discuss why traditional recognition programs often fall short, how companies can move beyond transactional rewards, and what it takes to build a culture where appreciation becomes a habit.

If you are an HR leader, a business executive, or someone passionate about workplace culture, this conversation will give you fresh perspectives and practical strategies for redefining employee motivation.

Listen now to discover how recognition can drive engagement, retention, and high performance without the usual complexities of managing multiple reward platforms and vendors.

Tamra will share more insights on the partnership at the HR World Summit in Lisbon this May, where she will present the framework alongside Loylogic leadership. We have a limited number of exclusive tickets available. Register your interest now and be part of the conversation shaping the future of workplace recognition.

Companies looking to transform their approach to employee engagement and create a truly strategic rewards program can learn more by visiting Ultimate.one and booking a demo today.

Podcast Transcript:

01:56: What's the background to this partnership?

Gabi Kool: "Yes, happy to kick this one off. Basically, I had the pleasure of meeting Tamra. I think it was last year in Switzerland. We were both at an HR conference at the time, and I really, really enjoyed listening to her while she was speaking on stage about many things related to employee motivation, how to build high performing workplaces.

"While I was listening to that, I thought, what a perfect fit that would be for what we were at that stage, in the early stage of building with our Ultimate solution. So, I thought I would see if I could tempt her to be our global brand ambassador for Ultimate, and also to bring her thought leadership as a way of solidifying the science in our platform. So, I tried my luck, introduced myself and explained what Ultimate was about. And so that was how kind of our first interactions started. And here we are."

Tamra Chandler: "I would say it wasn't that hard of a sell, Gabi, because, you know, my passion is about creating workplace environments where people just really thrive and can show up and be themselves. That means having a workplace where gratitude and recognition are just how we do things around here. And, you know, anytime we can provide tools or assets that make that easier, it just fuels that kind of environment. Ultimate, to me, was like a no brainer. It just, it removes so many of the barriers, and it creates that platform to deliver a healthy and inclusive and warm environment."

03:43: That's the perfect segue into the first question for you, Tamra, focusing in on your specialist area. Why do you think organizations often struggle with creating meaningful employee recognition?

Tamra: "Yeah, that's probably one of the bigger questions, right? And I think we have to kind of step back and say, well, what are we trying to do? And we're trying to create a new habit. Recognition needs to become a habit, and that habit needs to start with the individuals that make up the organization. They need to start to adopt a way of shifting the organization culture, to accept this is, again, the way we do things around here.

"I often like to think about it as mindset, methods and muscle. And we always say you have to start with mindset. You have to sort of check in with, do we have a belief that recognition is a good thing? Do we understand the value and the impact that a culture that swims in gratitude and appreciation provides? Do we even understand some of the fundamentals, like when we talk about frequent recognition? I mean, that's an important question, because when you look at the science behind it, you'll see that there's this interesting gap. It's a paradox of some sorts between how frequently we want to be appreciated or recognized and how frequently we engage in offering recognition and appreciation. There's a Delta there. With mindsets, we have to start by aligning on why this is important, and what it would look like, and why it's important for us to have it in the culture.

"Once we've shifted our mindset to wrap around that concept, then we can start to think about methods and muscle and, you know, Ultimate provides us with this fabulous method. It gives us this platform to start to ease into that habit, to make it easy, to start to create this recognition culture, and then we go from there.

"Now, when we talk about muscle, if you ever look at any of my content, you'll see I always talk about leaders go first. And I think what's so important here is that once we've shifted the mindset, we've created the methods we need leaders to lead the way. We need them to start to engage in a way that says this is how we work here. This is how we operate, and this is the way that we recognize and celebrate the work that everyone brings each and every day."

06:12: And is that the inspiration behind the 100 moments that matter framework?

Tamra: "Yeah, I think when we started talking about the 100 moments, what I really wanted to do is bring to the table information, you know, the helpful information that provides the platform for high performing teams and inspired people. So how do you do that? I really leaned into what I know through the science. What do I know through my 30 plus years working with organizations to create inspired organizations to inspire people? But the aim was not just to provide this pick list for people, which is somewhat what it is, but to help us think beyond the common ideas, to help us really kind of broaden the topics that we might, you know, recognize or notice that are being offered within the organization that we see people doing every day.

"I think we fall into old habits of recognizing the same. Oh, you did a great customer presentation, or you did this, but there's so much more goodness that happens in an organization, and I think we need to broaden our horizons. So, the 100 moments was about how do we do that? How do we help people think more broadly about all the good things they're seeing and witnessing when they show up for work every day, or they dial into work every day, or, you know, however they're engaging?"

07:33: That, again, leads on to an obvious next question, which is how does this framework align with modern workforce trends such as the demand for more personalized and meaningful recognition, and also, how does it tie into the kind of modern ways of working, hybrid work and remote working, etc?

Tamra: "What's interesting about that question is sort of asking yourself, what has changed? Humans haven't changed, but their expectations have changed when they're engaging in a workplace.

"What I mean by that is, if you look at human motivation, we have craved being part of something, this idea of wanting to be included in a tribe, of being appreciated by our tribe that's as old as the human race. But for years in the business world, we really tried to separate the human side of the workplace from the more business side of the workplace. We tried to draw a line, if you will, between the head and the heart. So, I think what has changed again is that, thankfully, we're more enlightened. Now most of us have a greater understanding that separating the head and the heart is a fallacy. We can't really separate it, and that if we fail to really see to the human side of people, we diminish them, we put them in a sub-optimal state. They might be operating from a place of fear or just indifference, right?

"When you look at some of the engagement scores, with our more enlightened state, as we're leading organizations and people, we need to understand the importance of helping people know that we see them. That we see the value that they're bringing, that we are attending to their heart and their head. And that begs us to start to create these environments where we can celebrate and recognize people that we can lean into practices that say thank you and recognize them for the contributions. And when we do that, amazing things happen. We put people in that optimal state where they're showing up as their whole self, where they're energized and excited about the work. And those types of things create this whole energy and performance, and amazing things really happen.

"Back to your original question, Austin, but the 100 moments provides us this framework. It gives us these science backed prompts that help us to be better at noticing that goodness and seeing to the whole person, and making them feel included, that you’re important, you're part of the tribe. That is some powerful stuff."

10:06: Indeed, extremely powerful. I think everybody would agree with that. So, Gabi, bringing you in here, and given everything Tamra has mentioned there, how does Ultimate address the common challenges companies face, and how do you kind of go about creating an effective global recognition program?

Gabi: "When we were looking around to develop Ultimate and we were talking to HR leaders and kind of building our own hypothesis of what was kind of mostly needed in that space, one of the observations that we had at the time, Austin, was that you will find great, great HR leaders out there, of course, in many, many kinds of companies, and also great leaders in organizations who want to do the right thing. But if you looked at what the HR departments often had to do when it came to incentive programs, especially multinational organizations, it was very often that a lot of the energy that they had to spend on it was more going to the operational part, finding the right kind of tech partnering country, A, B, C, D, E, the right kind of incentive partner in the in these kind of countries as well. The space where the HR leaders that we spoke to really wanted to spend their time was building that kind of right designs and programs where, to Tamra's point about the head and the heart, they were rewarding the micro moments.

"When we set out to develop Ultimate, we wanted to take care of that by building a platform that takes, especially for multinational organizations, that operational burden away, so that we can enable, via our platform, the right kind of design elements for the right program for your organization, as an HR leader.

"We've made a lot of really great progress so that it's now very simple for an HR leader to just buy the relevant number of motivational currencies via the platform to then distribute it in the manner that best suits, without having to worry about the operational elements."

12:27: So, Tamra, coming back to the 100 moments that matter, could you share a few examples for us, please?

Tamra: "We've designed the 100 moments to really think about what are these different sort of practices that we could have, or sort of themes. You're going to see things that are typical, like, you know, nice job is one of our themes. A moment under that is achieving a notable impact of performance. That's pretty common, but we tried to go well beyond that. So, another of our categories is called the Best of Us. And one of my favorites there is operating without judgment or blame. And I know in my best days, I do that, but you know, we don't always achieve that every day.

"Resilience, owning it, really thriving an environment of uncertainty, is another one I really like, right, called I'll be There. And one of the moments is generously giving your time to support others. You know those colleagues who lean in when you need that help and wanting to say thank you and recognize that we have inclusion as one of our categories. And one of my favorites in that is creating opportunities for others to shine.

"Our category of Authentically Human has some good ones, like displaying enthusiasm, passion and joy at work and just saying, thank you to those people that bring that energy. So those are just a few, Austin."

14:01: So how do moments like these help organizations kind of go beyond that transactional rewards culture toward kind of building a culture that that's full of engagement and loyalty?

Tamra: "Gabi spoke to this, as far as the micro moments go, is this idea of the personalization. We're really looking to make it easy to recognize those moments, to take a light pause, to say, I see you. I see this value you bring. This isn't a transaction. It's a personal reflection. There's a reason we call them moments, or even micro moments, right? Because that's what it is. It's a simple moment to pause, to do a little noticing, and to say, thank you."

14:51: That sums it up beautifully. And is it true that HR leaders have, often, not in all cases, but often have struggled to get buy in from leadership when it comes to investing in recognition? And does this new framework, this science backed framework, help in changing the discussion around the investment?

Tamra: "Well, I certainly hope it does. Sadly, sometimes it's hard to get support for this, even though, you know, there's a very strong business case. If you look at the science behind recognition, you look at the benefits it brings, when people are frequently recognized, when they feel connected, they're engaged, and when you're engaged, you perform better. So, there's a lot of moments in here that are team-based because when our teams are engaged, and we're really kind of moving as a high performing team, that's when we really drive performance for an organization.

"So, there's a lot here from a business case, but sometimes you don't get leaders who really connect with those numbers, or necessarily believe those numbers, and that can make it difficult. But I think there's a couple of things happening here. I think Ultimate lowers some of the barriers, as Gabi's talked about, to ease into this. So that improves your business case, because it takes away some of the things that have made it hard in the past. And then, we're creating these moments that make it easy and light and not adding extra burden to managers or others. So, there's a lot of goodness that's happening here.

"My one little tip for leaders is, if you're having trouble with a with a business leader, sometimes what can be most powerful is to sit and talk with business leaders about their own history, and get them talking about the times that they were recognized and the impact that had on, their own experiences, or the impact that might have even had on their career. And I think if we if, sometimes, if the if the business case strategy doesn't work. Sometimes the heart strategy works and gets them really thinking about how this is important in creating those same types of experiences for the people in their own organization. It can be difficult, but I think you can come at it from both those ways, and Ultimate makes the business case easier, and we make it lighter for your managers, and we can really impact, you know, the experience for your people, for sure."

17:28: So, what you're saying there is that there's a very human, centered approach in your framework?

Tamra: "Yes, that is such a simple way to say it!"

17:42: Gabi, coming to you, how does Ultimate take that human centered approach and combine it with technology to create a platform that is truly transformational?

Gabi: It's an interesting one, right? We've now got these beautiful 100 moments built into a framework, and then the other part that you need to do in a platform like Ultimate is make it very easy for the HR director to bring this alive in an organization and administrate. But also, as we know, there's an enormous power in the whole peer-to-peer recognition area of these kind of incentives, especially if I can give, as an employee very easily, some Stars as a form of recognition for somebody in my team or my organization who has done something good for the company or good for me or basically helped me out.

"Now, how do you enable that part? It's not so easy if you've got a team of 5,000 employees to educate everybody about the 100 moments and exactly which moments to use, and when. So, where technology then comes into play, and that's what we're working out and rolling out as we speak, is, how can you then bring an AI component, for example, where somebody can describe what somebody did for them, and then in the back end of our platform, it automatically marries that to the right moment from the framework. So, when an HR director looks at kind of how the organization is recognizing and rewarding each other for the moment in there, are there certain blind spots, let's say, in the organization of behaviors that you would like to stimulate but that are never somehow either acknowledged or maybe displayed, can also be the case.

"So, we see a role for AI in there to make that rewarding mechanism easy for employees. We've also seen it in our own organization. Before we had built Ultimate, we had our own 'thank yous', where people could, on our internal platform, thank each other for certain activities. Everybody had their own mini budget of points that they could give away to their colleagues on a monthly basis. And we've seen, therefore, the power of that part now, where the technology comes into play, that's kind of, I think, where we make that as frictionless, and as easy as possible, so that there's no complicated steps in the way of enabling that.

"The other part, of course, is embedding this in the existing HRMS platforms that organizations are using. The more we can embed Ultimate in all the leading HRMS platforms, of course, that also makes it much easier for organizations to adopt it?"

20:43: I want to pick up on something you've mentioned there, which is around the whole rewards and incentive side of things. So how does Loylogic's expertise developed over more than two decades of creating rewards and incentive solutions position Ultimate to serve companies of all industries and sizes globally?

Gabi: "Yes, it's an interesting question, because our history lies very firmly in the consumer loyalty space. So we've been around for two decades, as you mentioned, supporting the largest either frequent flyer programs in the travel industry, largest bank loyalty programs with some of the most notable brands in the world there, as well as fast moving consumer goods or the CPG kind of brands with their loyalty initiatives, but it was always basically consumer loyalty, where our main job as a company was to support our clients, so these program owners could look after their best customers. So, when these companies want to reward their best customers, it was our job to get the right incentive at the right time, in the right kind of user experience, in the hands of their most precious asset, their customers, so that it positively influences the behavior of those customers via very memorable experience, and make these customers feel warm in their heart.

"Now, if you translate that to the employee motivation space, where we are newly entering with our solution of Ultimate, we're not dealing with an organization's best customers, but arguably with their other most important asset, their employees, their human capital. So also here, there's a very strong parallel with giving the right incentives to the people at the right time in a way that's fun, and how they can also recognize and incentivize their colleagues, so that it cements that relationship between the organization and the employee. So, while there's a slightly different angle to it, there's a lot of learnings that we take from our two decades of working on the business to consumer loyalty side into this B to E, employee motivational side.

"If you then combine it with, of course, the fact we have global technology, we have global content available for these kinds of programs that we support, we really thought, how can we then enable that to be a force to reckon with, to help these organizations around the world?"

23:21 Bringing everything together, what do you hope to achieve with Ultimate? What vision do you have regarding Ultimate's role in shaping the global motivation rewards industry?

Gabi: "Well, we're ambitious people Austin, so we've got high hopes! Basically, we would love to be THE global rewards currency in the employee or motivational space. And basically, that means that when these employees get recognized by their peers or by their managers or by the organization, they get something that they really love, rather than a well-meant incentive that might not be spot on for an employee. We think that giving them these Ultimate stars and then having a global reward shop with different kind of content for every market in that platform, and it doesn't matter if it's merchandise or gift cards or travel or experiences or like, with like the sky is the limit in there, is exciting. So, we that's what we are hoping for, dreaming of, and basically working really hard for to make our steps in that journey."

24:26: Tamra, similar question to you. What excites you most about the potential of the 100 moments that matter to transform workplace cultures and motivation?

Tamra: "I started off talking about my passion for creating those kinds of workplaces. And what I'm so hoping is that the 100 moments help people realize how often they see these good things happening around them. You know, in my feedback book, we talk about the fine art of noticing, and it is an art we're not very good at it. And. So I'm hoping that the people read these 100 moments and they're like, wow, you know, I never thought about that goodness. I see that happening over here or over there, but I'm going to start recognizing it now, right? I hope it inspires them to think about what really matters and how they can be part of an environment where people feel included, seen, appreciated, that it becomes this powerful way of celebrating so much that happens that we just sort of let go by us. But instead of letting it go by, we start noticing it and taking that moment to recognize it."

25:38: Indeed, it's a fascinating, kind of almost melting pot, isn't it, of art science, AI technology, the human centered approach, that that could be really impactful and have that enduring impact on employee engagement, I guess so. My final question to both of you is, what message would you like to leave for companies and HR teams seeking to elevate their approach to employee motivation and recognition?

Tamra: "I'm really wanting to help organizations build a true culture of recognition. And you know what I mean by that is that is the way we work. You know that's what culture means. This is how we do things around here. And what I think is so powerful about what we're bringing to the market, between the platform and the framework and the 100 moments, is we're making it easy to create that foundation for that recognition culture.

"To me, recognition culture goes beyond the Ultimate 100 moments. It goes into the shout outs in a meeting, the pauses during a day to verbally recognize somebody. But I think what's so important about it is it truly becomes that platform that can fuel that culture, where we learn those new habits, where we start to create that energy that just sort of builds over time. And the Ultimate platform that's easy to implement, that's easy to deploy, that gets us thinking more broadly, brings that to the market. It's a powerful place to start."

27:18 And Gabi?

Gabi: "We all spend so much time at our workplace, right? So, my big hope for this whole joint initiative is that HR leaders are truly inspired by these moments.

"When we looked at the list of 100 moments, and we'd like to think that we are, of course, recognizing our team well, and that we are actively doing all the right stuff, day in, day out, I can tell you, when we looked at the list, there were at least 60 moments where I thought, yes, that's a great thing, I should recognize it more. I should be more mindful of paying attention to that and recognizing our team. The same feeling was felt in our own leadership team. I think you can take a lot of inspiration from that platform.

"I would really encourage all the listeners to this podcast go and explore the platform that we've put together with Ultimate and look at all these moments and reflect on them. And then, of course, we would love to hear the feedback from HR leaders around the globe while we're on this journey to further build out this platform. They are part of that journey with us. In the end, if we can help a lot of HR leaders in their own journeys it would be great. That's my hope and the ambition and what I believe we can achieve."

Loylogic has partnered with celebrated thought leader M. Tamra Chandler to introduce a groundbreaking approach to employee recognition: The 100 Moments That Matter – exclusively designed for Ultimate.  

Tamra has devoted her life's work to elevating human and team performance through practices that put people first, and The 100 Moments That Matter is a unique and powerful platform for achieving these goals.

For the first time, organizations worldwide will have access to a curated, science-backed framework for employee motivation, integrated directly into Ultimate, Loylogic’s Points as a Service (PaaS) platform. This innovative framework ensures that HR teams can recognize employees in the right way, at the right time, and for the right reasons, without the complexity of managing vendors, currencies, or logistics across multiple markets.

A first-of-its-kind framework for employee motivation

Tamra Chandler has redefined how organizations drive engagement, performance, and workplace culture. Drawing from her decades of research, consulting, and thought leadership, she has now created the first-ever curated list of 100 Moments That Matter – a framework that identifies the key recognition moments proven to drive employee engagement and retention.

This exclusive framework has been developed specifically for Ultimate, making it the only rewards platform with which companies can seamlessly embed a research-backed recognition strategy into their employee motivation programs.

Unlike generic recognition programs that focus solely on tenure or performance-based bonuses, The 100 Moments That Matter provides a structured yet flexible approach that HR teams can use to inspire their people with meaningful, personalized rewards.

Ultimate: removing complexity, maximizing impact

Global companies often struggle to maintain consistent, impactful employee recognition programs across different regions, facing challenges such as multiple suppliers, fragmented platforms, and operational inefficiencies. Ultimate solves this by offering:

• A single, seamless platform for all employee rewards globally
• Ultimate Stars – a global rewards currency that employees can redeem for experiences, merchandise, travel, gift cards, and more via Loylogic’s award-winning marketplace
• Automated, AI-driven recommendations that match recognition moments with meaningful rewards
• Seamless integration into HR systems, eliminating manual processes and multiple vendors

If this has sparked your interest and you'd like to explore further, visit the Ultimate website to learn more or book a demo today!

A data-driven approach to employee engagement

By integrating Tamra’s exclusive The 100 Moments That Matter framework, Ultimate ensures that recognition isn’t an afterthought, but rather  a strategic tool that creates thriving cultures and delivers differentiated business performance.

This unique collection of moments focuses on recognizing and rewarding meaningful actions and behaviors that contribute to an exceptional and inspiring workplace culture, driving employee connections and organizational success.

Each of the 100 Moments That Matter is grouped into 25 themes, such as:

- Nice Job!: Recognizing exceptional performance, such as consistently delivering high-quality work or meeting deadlines under difficult circumstances.
- The Best of Us: Rewarding collaboration and resilience, like mediating between colleagues to resolve an issue or leading by example during challenging times.
- Delighting Customers: Celebrating customer-centric behaviors, including exceeding customer expectations through service or solving long-standing customer issues.
- Helping Them Grow: Supporting team development by intentionally transferring skills and know-how to others or coaching and mentoring team members to succeed.
- Innovation: Encouraging creative thinking, such as proposing new and novel ways of working or exploring possibilities while constructively challenging the status quo.

These moments prompt employees to think beyond familiar recognition themes while creating a structured, scalable approach to appreciation.

"Companies today recognize that engaged employees drive success, but traditional reward programs are often reactive, transactional, and disconnected from what truly motivates people," said Gabi Kool, CEO of Loylogic.

"With the launch of The 100 Moments That Matter exclusively within Ultimate, we are providing HR teams with the first-ever framework that combines behavioral science, AI-driven automation, and frictionless global rewards all in one solution. This is not just about offering rewards; it’s about ensuring they create real impact."

So how does Ultimate go beyond just providing rewards? By ensuring that recognition becomes a meaningful aspect of the culture, and that it flows with the rhythm of work. . Further, Ultimate helps your employees take notice of the contributions of others and say, “I see you and the positive impact you have on our team.”

Key capabilities include:

- AI-driven recommendations that suggest relevant moments for recognition
- Global scalability, making it easy for companies to maintain a unified rewards strategy across all locations

Looking forward, Ultimate peer-to-peer recognition will also be developed, enabling employees to reward each other instantly to further improve motivation and drive team-based recognition.

Transforming employee motivation for the future

According to the 2025 US Appreciation Index Report, employees who feel valued at work are significantly more engaged, productive, and likely to stay with their organization. However, many businesses lack a structured approach to recognition, leading to inconsistency and missed opportunities to build loyalty.

"By creating The 100 Moments That Matter specifically for Ultimate, we are giving companies a pathway to a recognition culture that is not only meaningful but also effortless to implement at scale," said Tamra Chandler.

"I’m thrilled to partner with Loylogic and their Ultimate PaaS solution to redefine workplace recognition. This is the future of employee motivation: one that is rooted in science, powered by technology, and designed for real human connection."

Tamra will share more insights on the partnership at the HR World Summit in Lisbon this May, where she will present the framework alongside Loylogic leadership. We have a limited number of exclusive tickets available. Register your interest now and be part of the conversation shaping the future of workplace recognition.

Companies looking to transform their approach to employee engagement and create a truly strategic rewards program can learn more by visiting Ultimate.one and booking a demo today.

A little bit about M. Tamra Chandler

Tamra Chandler is a globally recognized thought leader, speaker, and author who has devoted her career to elevating human and organizational performance through people-first practices. With over three decades of experience in business transformation, she has revolutionized how organizations approach performance management, feedback, and employee recognition.

Named one of Consulting Magazine's "Top 25 Consultants" in both 2007 and 2014, Tamra founded PeopleFirm LLC in 2009, leading it to recognition by Forbes as one of "America's Best Management Consulting Firms." She is known for her groundbreaking books "How Performance Management is Killing Performance" and "Feedback (and Other Dirty Words)," as well as creating the innovative "100 Moments That Matter" framework—a research-backed approach to meaningful employee recognition.

Through her down-to-earth style and results-driven approach, Tamra helps organizations discover the sweet spot where inspired people and inspired performance intersect. Her work demonstrates that when companies create environments fostering genuine human connection, meaningful feedback, and purposeful recognition, extraordinary results naturally follow. From nonprofits to multinational corporations, her transformative approaches continue to shape how forward-thinking organizations build cultures where both people and performance thrive.

https://www.tamrachandler.com/

In the latest episode of the Loylogic Podcast, we welcome Len Llaguno, founder of KYROS Insights, the world’s only actuarial firm exclusively focused on loyalty programs, to discuss how actuarial techniques are transforming loyalty program design and delivering commercial success.

Len combines actuarial science, machine learning and deep loyalty expertise to tackle the financial complexities behind some of the biggest loyalty programs on the planet. Len and Loylogic have worked together for many years to elevate loyalty success, including transforming how organizations like African Bank optimize their award-winning Audacious Rewards programs.

Based around the philosophy of “Show me the incentive, and I’ll show you the outcome” this episode offers actionable insights into how actuarial science, data-driven strategies, and thoughtful redemption design allied to effective redemption marketplaces can transform loyalty programs into sustainable, profit-driving assets.

Talking points include:

- Member Equity as a Growth Driver: Using actuarial analytics to gain the insights needed to understand the behaviors behind loyalty-based growth.
- Designing effective loyalty programs: Leveraging data to identify member actions that increase CLV and EFP, driving both loyalty and financial growth.
- Data-Driven Decision-Making: Harnessing predictive models to de-risk liability, optimize redemption activities, grow loyalty program success and amplify ROI.
- The Redemption Marketplace Advantage: Why offering a broad choice of rewards options – which members actually want – is critical for engagement and long-term profitability, because burn drives earn.
- Balancing engagement and financial integrity: how redemption marketplaces power loyalty success.
- Liability Management: Properly accounting for redemption costs ensures programs avoid short-term decisions that actually harm customer experience and long-term loyalty.
- Future-Proofing Loyalty Programs: The evolving role of actuarial science in ensuring financial integrity and sustained member loyalty.

Ready to redefine loyalty using financial science? Listen now. A full transcript of the podcast is also available below.

(01:36) Len, how did you end up bringing your actuarial expertise to the world of loyalty?

Len Llaguno: "Maybe Austin it would be good to start with the question of, what is an actuary? Not a lot of folks in the loyalty space have interfaced with actuaries before. The stereotype of an actuary is we're sort of like the math nerds that work for insurance companies, and we're building the models to predict, for example, how long you're going to live, right? And obviously that's a really important model to have if you're trying to price a life insurance policy. So, the work that we're doing, fundamentally, is trying to predict over a long horizon, how long somebody is going to live, as a long-term prediction exercise. We're trying, as actuaries, to predict over long horizons and use that information to make smarter business decisions today.

"So many years ago, when I was a young actuary working for a big actuarial consulting firm, one of the big hotel chains came to us and said, 'Hey, my auditors are asking me a bunch of questions about all of these loyalty points that we give out to our to our members whenever they stay with us, and they're saying, Hey, you're issuing all these points that may not get redeemed for years into the future, but you need to book this liability on your balance sheet, as these points are eventually going to cost something, and that amount is x, right?' The hotel chain had no idea how to estimate that number, so the auditor said, 'You should go talk to an actuary. Actuaries are good at this.' Luckily, I got staffed on this project, and it was so interesting. It was way more interesting than sort of traditional actuarial work in the insurance industry! And I found it so much fun.

"The main thing that we started to realize when we got into this was, you know, traditional actuarial techniques that were built for the insurance industry, 50 years ago, didn't work that well for loyalty programs. You know, loyalty programs are just much more fluid and dynamic than an insurance policy or insurance portfolio, generally speaking, and you know that's because, by definition, you're trying to change people's behavior with the loyalty program, right? And so, these traditional methods that really were quite old, developed decades ago, just weren't responsive enough to really pick up the signal that was necessary to accurately predict these long-term redemption behaviors.

"I did my degree in computer science and actuarial science, and so at the time, I was doing a lot of machine learning type work and, although back then it wasn't called data science, I was doing a lot of data science type work. And, you know, I thought that there was something really interesting at the intersection of modern-day machine learning, data science and actuarial science. And I thought if we could really tap into that intersection, we could build something really interesting for loyalty programs that would solve a lot of their problems. And so, I set out to build that, and I've been on that journey for more than a decade now, probably coming up on like 15 years, trying to work through and optimize that.

"Every single loyalty program has this very difficult problem of quantifying and managing the liability related to outstanding points that they're issuing. This estimation problem is very hard. There's all kinds of complex accounting rules that you have to apply, and often it's a huge item on the balance sheet. It's financially material. The CFO cares about it. The auditors care about it. And even then, there's all kinds of other stakeholders within the organization that are seeing this massive cost, and they're wondering, what is the ROI we're getting on this? And you know, how do we optimize that ROI? All of these are very difficult problems that, if done poorly, if answered poorly, can create a lot of financial risk and volatility for the organization. And so that's what we try to do Austin, is we try to solve all of these problems for our clients. We strive to build the world's best financial operating system for loyalty programs, and basically take all that financial complexity and just make it very, very simple.”

(05:51) Fantastic. So, as I touched on in the introduction, you've been collaborating with Loylogic and the work that we've been doing with African Bank over the past couple of years. To provide context and taking into account your explanation there of what you're doing, what has the work entailed, and how has this contributed to the success of the program so far?

Len: "Yeah, we've been working with the team at African Bank, and they've just done such a tremendous job. Their head guy, Nceba, is a tremendous leader, visionary and just all round, really great guy. He's led them to win several awards, both domestically, in South Africa and internationally, too. So, it's been wonderful to work with them.

"We do a wide range of actuarial analytics for them. First thing we do is we help them understand and forecast redemption behavior, which is really critical to understanding redemption costs and liability. You know, redemption cost is the single largest expense in the loyalty program business model, so it's really important that you have a really good understanding of what those costs are. So that's sort of the first thing we do for them.

"We also build all kinds of models to predict customer lifetime value, or CLV. CLV is an estimate of how much profit a customer will generate over their lifespan as a customer. And this is profit, so it's a bottom line number. It's profit net of the redemption costs. And making a net of redemption cost is really important because it's a bottom line notion, as opposed to liability, which is just focused on cost, right? So, customer lifetime value being net of redemption cost being a bottom line notion, it really gives you a sense for the net economic picture and helps put the liability into context.

"So, you need both of these, this understanding of liability, and you also want to have this understanding of customer lifetime value to get the full picture of a program's financial foundation and economic performance. So those are the type of things that we do for African Bank, and we use these models and the insights we can gain from these models to help uncover risks that they should be mitigating and opportunities that they should be trying to exploit, right to ultimately help them drive business performance."

(08:08) I think it's fair to say that we're talking about making the loyalty program as sustainable as possible and unpacking that member equity. Thinking more broadly, away from just the African Bank example, how would you define member equity, and why is it critical for loyalty programs?

Len: "Yeah, that term member equity is a really, really important one. So, let's start with defining it. I spoke about customer lifetime value. This is the expected profit that a customer will generate over their lifespan as a customer, net of redemption costs. When we think about customer lifetime value or CLV, you can really decompose that into two components. There's the profit that a customer has generated to date. It's a known quantity. We know how much profit they've generated. And then there's the profit we expect the customer to generate in the future, right? The expected future profit, right? And we call expected future profit EFP.

"EFP is really the one you mostly care about, because the profit to date, you know, you can't influence that. It's already happened. The only thing you can influence is the future profit. So, most of our time is spent focused on EFP, expected future profit. Now, expected future profit is sort of a long-term prediction exercise, again, right? Because we're trying to predict not just how much profit they're going to generate next month, but many years into the future, over a very long future horizon. It's an actuarial prediction exercise at the end of the day. So that's what EFP is, the expected future profit for a given Member.

"Member equity is simply the sum of EFP across all of your members. So EFP is an average per member. And member equity is the total profit across all members, right? That's what member equity is. Why is that critical? The reason is every single loyalty program is trying to increase customer lifetime value. That's a fundamental goal of every single loyalty program, because the whole point is to win the loyalty of the customer, so they keep coming back. And we want them to come back, not just next month, but the month after that, the month after that, the month after that, the year after that, the year after that. We want them. We want to improve their retention forever into perpetuity. The perfect way to quantify the impact of improving long-term loyalty and long-term retention and putting that into dollars and cents is CLV. Or, more specifically, EFP, the future part, right?

"Here's how it all connects to you. If a loyalty program is increasing customer lifetime value, we're increasing member equity. If we're increasing member equity, it means we're expecting more profits in the future. And if we're expecting more profits in the future, it means the company is more valuable, because companies are valued based on how much profits are expected in the future. Member equity is a powerful concept because it directly links the loyalty program and everything the loyalty program managers are doing to financial results and enterprise value creation. Does that make sense?"

(11:36) It does absolutely. So, I guess the obvious follow-on question from that is, how deep do your analytics go? What sort of insights do you provide into optimizing that lifetime value of loyalty program members?

Len: "The first thing you need to have are good EFP models to predict that future profit. You want to predict it at the individual member level. It's really important that you're able to look at all the characteristics of each individual member and make this forecast of how much profit they're going to generate in the future. Once you have these EFP models, there's still a lot more analysis that needs to be done.

"What these models enable you to do is study the customer journey from an economic perspective. So, what does that mean? Most companies certainly look at the customer journey from a customer experience perspective, and this is extremely valuable, and they should absolutely do this, but that is not what we're talking about here. When you look at the customer journey from an economic perspective, what you're focused on is identifying where the inflection points are in the customer journey, where EFP really increases the points where a customer does a certain behavior, and that behavior work results in EFP taking a jump upwards. What that means is, when the customer does that behavior, they become much more likely to return and spend more in the future. Ultimately, if you can identify those behaviors, and you can get more people to do those behaviors than they otherwise would, you're increasing EFP and creating incremental value for the organization. That's the basic notion.

"What we excel at is taking a rigorous, scientific approach to doing this, which really enables us to quantify the incremental value the program is generating and then communicating that to stakeholders and also finding the levers to drive even more incremental value, and then, of course, communicating that ongoing improvement of incremental value to stakeholders. And what this does at the end of the day is help our clients get recognized for the value that they're creating through the loyalty programs.

"For far too many programs, this value just goes completely unrecognized and unnoticed, because it's very difficult to quantify. So, a lot of important stakeholders within the organization just sort of think as loyalty as a cost center rather than a value generator. And it's this sort of process and analytics that helps to change that perspective."

(13:54) That's interesting, and I'm going to go slightly off script here, Len, if that's okay. We're talking about a very scientific approach to loyalty programs, which is clearly transformative. But how do you take into account the emotional loyalty, that emotional connection that a customer has with a brand because they've experienced great service or something memorable has happened, or whatever? How do you build that into your modeling?

Len: "Yeah, so it's sort of implicitly in the data. Even though I don't have a variable in the data that measures the emotional reaction that somebody had when they did a redemption, they nonetheless had that emotional reaction and therefore embedded in the future behavior that they're going to do. I'm a big believer that there is actually a huge emotional reaction that happens when you do a redemption for something valuable and something meaningful to you.

"A personal anecdote here Austin. Last spring, I took my wife and my kids on a spring break in the Caribbean for free, because I was able to redeem a ton of points, and we were all able to go. It was wonderful. We had such a great time. And what happened was, because it was so much fun, I told everybody about it! All my friends heard about it. All my family heard about it, and they probably heard about it multiple times! And the same thing happened this Christmas. We went back to Canada to visit my family. We all got to fly for free. And I tell you what, everybody heard about it, and so that sort of emotional connection and engagement I was having by just sort of talking about it, really reinforced my connection to the brand and my loyalty. That's just a personal lane, though. I think that that happens a lot.

"A lot of contemporary thinking is all about the customer experience and trying to drive unique and bespoke customer experiences for people. And yes, you should absolutely do that. But that doesn't mean that points aren't also really, really powerful, or that the ability to actually redeem isn't really, really powerful in driving emotional connections. I think it's quite the opposite. The beauty also, of points, is you can do that at scale. I fly United because I'm here in Chicago. Think of all the United customers that are having this same experience that I am. That's probably millions. And that level of scale is very difficult to do with bespoke, one-off experiences. They are certainly going to wow your customers, but you can only do so many of those per year."

(16:38) Do you have any other examples of how predictive analytics are driving impactful customer engagement strategies?

Len: "Predictive analytics is certainly a massively underutilized tool for loyalty programs, I think. And so let me try to explain why. Do you know who Charlie Munger is Austin?"

Austin: “No, I don't.”

Len: "Charlie Munger is basically Warren Buffett's right-hand man. Well, maybe even saying right hand man is, not doing justice, he's Warren Buffett's partner at Berkshire Hathaway, a legendary investor and businessperson, right? One of the things he once said was, 'show me the incentive, and I'll show you the outcome', which is a very simple quote that just speaks to the power of incentives to drive human behavior. A loyalty currency is simply an incentive mechanism to drive the behaviors you want, at this most sort of basic form. It can be an incredibly powerful tool to drive member equity if you know what behaviors you want, which you know I spoke about earlier, we now do because we've studied the customer journey from an economic perspective and can identify those behaviors. It could be an incredibly powerful tool if, one, you know the behaviors you want to drive, and two, you know the optimal incentives to drive that behavior. The problem is the incentive that is optimal is different for each individual person.

"For example, I might require 1,000 bonus points to do something, whereas you Austin, maybe you require 5,000 points to motivate you enough to do the same thing. If you really want to maximize the effectiveness of your currency as an incentive mechanism, you need to do it with precision. You need to create personalized points-based offers for each member that maximize the likelihood that each individual is going to do the desired behavior. The problem here is most programs are not doing that. They're using their loyalty currency more as like a sledgehammer to incentivize where sort of everybody gets the same thing, rather than like a scalpel, where the right offers are sent to the right people with precision. And when we do this, you know, we're seeing incredible impact, like a two to five times improvement on ROI, on your campaigns. And so that's very worthwhile. And I think it's, you know, a great opportunity for all the loyalty programs out there.

"The key to it really is sophisticated predictive modeling, machine learning and a couple of proprietary algorithms that we've developed, or the tools that we found are extremely useful to unlock this value. You know, it's a great example of how predictive analytics can be really impactful and helpful to drive customer engagement strategies."

(19:16) I guess there's a nice segue there into redemption marketplaces, which obviously is where Loylogic's strength lies. How important is it from your perspective that you have a wide range of rewards options that entice and can be personalized, etc.? And secondly, how do you ensure that the proper liability accounting principles are in place to ensure the ongoing success, the sustainability, if you like, of that program?

Len: "Let me tackle Part B of that question first, because I think there's a lot to say that is really important. I mentioned earlier that redemption cost is the single largest expense in the loyalty program business model. So that alone makes it extremely important. You should spend a lot of time really understanding it, but it's unlike other business expenses. You know, if you're in the business of making widgets, you buy all the raw materials to make your widget, and then you make your widget and you sell it. And you know, immediately, without any uncertainty, the cost of making that widget, because you incur that cost immediately. That is not true with the loyalty program.

"With a loyalty program, you're issuing points today, you're selling your widget basically today, but you're not actually going to know how much it's going to cost you until people redeem those points, potentially years into the future. And by the way, a ton of them are not going to redeem the points. That's breakage that also affects the cost of these points. It's very, very different from other types of business models, and so it makes it even more challenging to try to understand what that cost is, what the redemption expense is going to be, which, again, is your single largest expense in your loyalty program business model, right?

"So, it's not really a good idea to run your loyalty program or any business without really understanding that expense, particularly as it's the largest one. So, we need to do this to ensure that the program is standing on a strong financial foundation. But a lot of programs are not spending a lot of time to do it right. It's very hard. It requires expertise, sort of at the intersection of actuarial science, data science, finance, accounting, economics and, of course, loyalty programs, which is just sort of really hard to find, and for most loyalty program managers, this is literally the most boring part of a loyalty program. They're loyalty marketers, they're excellent at, you know, building engaging strategies and campaigns and communicating with customers and creating incredible experiences, right? They're not experts at, you know, debits and credits on your balance sheet, or the nuances of actuarial analytics. Most of them, from my experience, don't really care too much about that stuff. It's extremely boring. Program managers are just not excited about doing this work. So, this work often gets sort of under invested, and that's why we exist. We find it interesting, but other people find it very boring and very hard, and just make it some into something very, very easy for loyalty programs."

“So that's sort of a lot of the context around why liability, proper liability management, is so important. You did have a question about the importance of having a lot of redemption options, and that is also really, really critical, less so for liability management, but more so for the broader success of the loyalty program. And let me explain what we always see when we look at the customer journey from an economic perspective is that redemption is a key inflection point in the customer journey.

“Whenever people redeem, we see a meaningful and often material increase in EFP. But what that means is you really want to enable people to redeem on the things that they want, right? You want to give them the option to be able to redeem on whatever is most valuable to them. And that's likely what's going to be the thing that creates that sort of emotional reaction when you get the redemption. And that's where Loylogic is extremely strong, right? And the value of what they do is they make it super easy for people to be able to have a wide range of redemption options that they can offer to their members. And so that's how and why having those redemption options is important to the success of a loyalty program."

(24:00) So my final question on the whole redemption marketplace side of things is, how can the methods that you employ ensure redemption marketplaces prevent short term counterproductive measures like currency devaluation?

Len: "This is a great, great question. When companies do that, it's, I think, a great example of not wanting to deal with building really sophisticated actuarial analytics to understand the financial foundation, and oftentimes the outcome is currency devaluation or removing popular redemption items to be annual budget targets. Forecasting redemption volumes is very difficult because programs are just so dynamic, and there's often, like, a very big lag between when the points are earned and when they'll actually be redeemed.

"What we've actually seen is programs not getting the right expertise and helping them produce accurate budgets. And as a result of that, they blow through their redemption budget for the year within just a few months. So, what do they do then? Well, they do drastic short-term things to meet their budgetary targets, right? So often that means shutting down a redemption option to reduce costs.

"The implication of that is, it's a terrible customer experience, right? You're gonna make your customers angry, which is never a good thing. And even beyond that, we know, as I spoke about earlier, redemption is always a key inflection point in the customer journey. So, you're really destroying EFP and member equity if you're not letting your customers redeem when they want to. So ultimately, you sort of get this short-term cost savings, but it comes at the cost of long-term loyalty and long-term profitability, which doesn't seem like the right trade off you ultimately want to make.

"The better solution here is just start your year with a good budget. And yes, in often cases, that means your budget for redemption costs will have to be much higher. But if you can credibly demonstrate that these redemptions drive amazing ROI, then it's absolutely a great idea to spend that money and then. So that's a big part of what we try to do with our engagements with our clients, is give them the tools to be able to articulate that and set accurate budgets so they don't run into these issues."

(26:14) Len, to wrap up the discussion, I want to just look ahead a little bit and look at how we future proof loyalty programs. So how do you envision the role of actuarial science evolving loyalty programs over the next five to 10 years, and what should businesses focus on to stay ahead?

Len: "Actuarial Science is all about long term prediction. We're predicting over long horizons so that we can make smarter business decisions today. So much about the economics of loyalty programs is centered around long-term outcomes, right? Redemption costs. Redemption on points you issue today will not happen for years in the future, right? So how are you supposed to estimate the cost at these points? Actuarial Sciences is the key.

"The value that a loyalty program creates comes from improving long-term retention, many periods into the future. So how do you quantify and prove that you're creating and finding the right levers that allow you to drive even more value? Actuarial Science is key here. If we really want to see the value that a loyalty program creates and learn the tactics that can maximize the value, I think actuarial science has to play a key role for in all loyalty programs. It's a big part of our mission to help programs around the world see that and make it easy for them to get the value of actuarial science in in their program."

(27:36) What practical advice can you provide businesses looking to integrate these approaches into their strategies?

Len: "Every single loyalty program is sitting on a goldmine of data. Every loyalty program has the data needed to be able to do what I described here today. The hard part is extracting the insights from the data. They say, you know, that data is the new oil, which is a great analogy. We're in an era where loyalty programs have basically struck oil, and now they need to build the infrastructure to extract and refine that oil, to capture the value, right? And so, you know, I think what a lot of loyalty programs can do today is really start working to set aside the budgets and make the investments in the analytics needed to really extract the value from that gold mine that they have, and start doing a lot of this, this research.

"From what I can tell and the work we've done, the ROIs are very clearly there. And most importantly, with this work, you could start actually quantifying in a very credible way what those ROIs are, so that you could turn those loyalty skeptics into loyalty advocates."

In the latest episode of the Loylogic Podcast, we welcome Len Llaguno, founder of KYROS Insights, the world’s only actuarial firm exclusively focused on loyalty programs, to discuss how actuarial techniques are transforming loyalty program design and delivering commercial success.

Len combines actuarial science, machine learning and deep loyalty expertise to tackle the financial complexities behind some of the biggest loyalty programs on the planet. Len and Loylogic have worked together for many years to elevate loyalty success, including transforming how organizations like African Bank optimize their award-winning Audacious Rewards programs.

Based around the philosophy of “Show me the incentive, and I’ll show you the outcome” this episode offers actionable insights into how actuarial science, data-driven strategies, and thoughtful redemption design allied to effective redemption marketplaces can transform loyalty programs into sustainable, profit-driving assets.

Talking points include:

- Member Equity as a Growth Driver: Using actuarial analytics to gain the insights needed to understand the behaviors behind loyalty-based growth.
- Designing effective loyalty programs: Leveraging data to identify member actions that increase CLV and EFP, driving both loyalty and financial growth.
- Data-Driven Decision-Making: Harnessing predictive models to de-risk liability, optimize redemption activities, grow loyalty program success and amplify ROI.
- The Redemption Marketplace Advantage: Why offering a broad choice of rewards options – which members actually want – is critical for engagement and long-term profitability, because burn drives earn.
- Balancing engagement and financial integrity: how redemption marketplaces power loyalty success.
- Liability Management: Properly accounting for redemption costs ensures programs avoid short-term decisions that actually harm customer experience and long-term loyalty.
- Future-Proofing Loyalty Programs: The evolving role of actuarial science in ensuring financial integrity and sustained member loyalty.

Ready to redefine loyalty using financial science? Listen now. A full transcript of the podcast is also available below.

(01:36) Len, how did you end up bringing your actuarial expertise to the world of loyalty?

Len Llaguno: "Maybe Austin it would be good to start with the question of, what is an actuary? Not a lot of folks in the loyalty space have interfaced with actuaries before. The stereotype of an actuary is we're sort of like the math nerds that work for insurance companies, and we're building the models to predict, for example, how long you're going to live, right? And obviously that's a really important model to have if you're trying to price a life insurance policy. So, the work that we're doing, fundamentally, is trying to predict over a long horizon, how long somebody is going to live, as a long-term prediction exercise. We're trying, as actuaries, to predict over long horizons and use that information to make smarter business decisions today.

"So many years ago, when I was a young actuary working for a big actuarial consulting firm, one of the big hotel chains came to us and said, 'Hey, my auditors are asking me a bunch of questions about all of these loyalty points that we give out to our to our members whenever they stay with us, and they're saying, Hey, you're issuing all these points that may not get redeemed for years into the future, but you need to book this liability on your balance sheet, as these points are eventually going to cost something, and that amount is x, right?' The hotel chain had no idea how to estimate that number, so the auditor said, 'You should go talk to an actuary. Actuaries are good at this.' Luckily, I got staffed on this project, and it was so interesting. It was way more interesting than sort of traditional actuarial work in the insurance industry! And I found it so much fun.

"The main thing that we started to realize when we got into this was, you know, traditional actuarial techniques that were built for the insurance industry, 50 years ago, didn't work that well for loyalty programs. You know, loyalty programs are just much more fluid and dynamic than an insurance policy or insurance portfolio, generally speaking, and you know that's because, by definition, you're trying to change people's behavior with the loyalty program, right? And so, these traditional methods that really were quite old, developed decades ago, just weren't responsive enough to really pick up the signal that was necessary to accurately predict these long-term redemption behaviors.

"I did my degree in computer science and actuarial science, and so at the time, I was doing a lot of machine learning type work and, although back then it wasn't called data science, I was doing a lot of data science type work. And, you know, I thought that there was something really interesting at the intersection of modern-day machine learning, data science and actuarial science. And I thought if we could really tap into that intersection, we could build something really interesting for loyalty programs that would solve a lot of their problems. And so, I set out to build that, and I've been on that journey for more than a decade now, probably coming up on like 15 years, trying to work through and optimize that.

"Every single loyalty program has this very difficult problem of quantifying and managing the liability related to outstanding points that they're issuing. This estimation problem is very hard. There's all kinds of complex accounting rules that you have to apply, and often it's a huge item on the balance sheet. It's financially material. The CFO cares about it. The auditors care about it. And even then, there's all kinds of other stakeholders within the organization that are seeing this massive cost, and they're wondering, what is the ROI we're getting on this? And you know, how do we optimize that ROI? All of these are very difficult problems that, if done poorly, if answered poorly, can create a lot of financial risk and volatility for the organization. And so that's what we try to do Austin, is we try to solve all of these problems for our clients. We strive to build the world's best financial operating system for loyalty programs, and basically take all that financial complexity and just make it very, very simple.”

(05:51) Fantastic. So, as I touched on in the introduction, you've been collaborating with Loylogic and the work that we've been doing with African Bank over the past couple of years. To provide context and taking into account your explanation there of what you're doing, what has the work entailed, and how has this contributed to the success of the program so far?

Len: "Yeah, we've been working with the team at African Bank, and they've just done such a tremendous job. Their head guy, Nceba, is a tremendous leader, visionary and just all round, really great guy. He's led them to win several awards, both domestically, in South Africa and internationally, too. So, it's been wonderful to work with them.

"We do a wide range of actuarial analytics for them. First thing we do is we help them understand and forecast redemption behavior, which is really critical to understanding redemption costs and liability. You know, redemption cost is the single largest expense in the loyalty program business model, so it's really important that you have a really good understanding of what those costs are. So that's sort of the first thing we do for them.

"We also build all kinds of models to predict customer lifetime value, or CLV. CLV is an estimate of how much profit a customer will generate over their lifespan as a customer. And this is profit, so it's a bottom line number. It's profit net of the redemption costs. And making a net of redemption cost is really important because it's a bottom line notion, as opposed to liability, which is just focused on cost, right? So, customer lifetime value being net of redemption cost being a bottom line notion, it really gives you a sense for the net economic picture and helps put the liability into context.

"So, you need both of these, this understanding of liability, and you also want to have this understanding of customer lifetime value to get the full picture of a program's financial foundation and economic performance. So those are the type of things that we do for African Bank, and we use these models and the insights we can gain from these models to help uncover risks that they should be mitigating and opportunities that they should be trying to exploit, right to ultimately help them drive business performance."

(08:08) I think it's fair to say that we're talking about making the loyalty program as sustainable as possible and unpacking that member equity. Thinking more broadly, away from just the African Bank example, how would you define member equity, and why is it critical for loyalty programs?

Len: "Yeah, that term member equity is a really, really important one. So, let's start with defining it. I spoke about customer lifetime value. This is the expected profit that a customer will generate over their lifespan as a customer, net of redemption costs. When we think about customer lifetime value or CLV, you can really decompose that into two components. There's the profit that a customer has generated to date. It's a known quantity. We know how much profit they've generated. And then there's the profit we expect the customer to generate in the future, right? The expected future profit, right? And we call expected future profit EFP.

"EFP is really the one you mostly care about, because the profit to date, you know, you can't influence that. It's already happened. The only thing you can influence is the future profit. So, most of our time is spent focused on EFP, expected future profit. Now, expected future profit is sort of a long-term prediction exercise, again, right? Because we're trying to predict not just how much profit they're going to generate next month, but many years into the future, over a very long future horizon. It's an actuarial prediction exercise at the end of the day. So that's what EFP is, the expected future profit for a given Member.

"Member equity is simply the sum of EFP across all of your members. So EFP is an average per member. And member equity is the total profit across all members, right? That's what member equity is. Why is that critical? The reason is every single loyalty program is trying to increase customer lifetime value. That's a fundamental goal of every single loyalty program, because the whole point is to win the loyalty of the customer, so they keep coming back. And we want them to come back, not just next month, but the month after that, the month after that, the month after that, the year after that, the year after that. We want them. We want to improve their retention forever into perpetuity. The perfect way to quantify the impact of improving long-term loyalty and long-term retention and putting that into dollars and cents is CLV. Or, more specifically, EFP, the future part, right?

"Here's how it all connects to you. If a loyalty program is increasing customer lifetime value, we're increasing member equity. If we're increasing member equity, it means we're expecting more profits in the future. And if we're expecting more profits in the future, it means the company is more valuable, because companies are valued based on how much profits are expected in the future. Member equity is a powerful concept because it directly links the loyalty program and everything the loyalty program managers are doing to financial results and enterprise value creation. Does that make sense?"

(11:36) It does absolutely. So, I guess the obvious follow-on question from that is, how deep do your analytics go? What sort of insights do you provide into optimizing that lifetime value of loyalty program members?

Len: "The first thing you need to have are good EFP models to predict that future profit. You want to predict it at the individual member level. It's really important that you're able to look at all the characteristics of each individual member and make this forecast of how much profit they're going to generate in the future. Once you have these EFP models, there's still a lot more analysis that needs to be done.

"What these models enable you to do is study the customer journey from an economic perspective. So, what does that mean? Most companies certainly look at the customer journey from a customer experience perspective, and this is extremely valuable, and they should absolutely do this, but that is not what we're talking about here. When you look at the customer journey from an economic perspective, what you're focused on is identifying where the inflection points are in the customer journey, where EFP really increases the points where a customer does a certain behavior, and that behavior work results in EFP taking a jump upwards. What that means is, when the customer does that behavior, they become much more likely to return and spend more in the future. Ultimately, if you can identify those behaviors, and you can get more people to do those behaviors than they otherwise would, you're increasing EFP and creating incremental value for the organization. That's the basic notion.

"What we excel at is taking a rigorous, scientific approach to doing this, which really enables us to quantify the incremental value the program is generating and then communicating that to stakeholders and also finding the levers to drive even more incremental value, and then, of course, communicating that ongoing improvement of incremental value to stakeholders. And what this does at the end of the day is help our clients get recognized for the value that they're creating through the loyalty programs.

"For far too many programs, this value just goes completely unrecognized and unnoticed, because it's very difficult to quantify. So, a lot of important stakeholders within the organization just sort of think as loyalty as a cost center rather than a value generator. And it's this sort of process and analytics that helps to change that perspective."

(13:54) That's interesting, and I'm going to go slightly off script here, Len, if that's okay. We're talking about a very scientific approach to loyalty programs, which is clearly transformative. But how do you take into account the emotional loyalty, that emotional connection that a customer has with a brand because they've experienced great service or something memorable has happened, or whatever? How do you build that into your modeling?

Len: "Yeah, so it's sort of implicitly in the data. Even though I don't have a variable in the data that measures the emotional reaction that somebody had when they did a redemption, they nonetheless had that emotional reaction and therefore embedded in the future behavior that they're going to do. I'm a big believer that there is actually a huge emotional reaction that happens when you do a redemption for something valuable and something meaningful to you.

"A personal anecdote here Austin. Last spring, I took my wife and my kids on a spring break in the Caribbean for free, because I was able to redeem a ton of points, and we were all able to go. It was wonderful. We had such a great time. And what happened was, because it was so much fun, I told everybody about it! All my friends heard about it. All my family heard about it, and they probably heard about it multiple times! And the same thing happened this Christmas. We went back to Canada to visit my family. We all got to fly for free. And I tell you what, everybody heard about it, and so that sort of emotional connection and engagement I was having by just sort of talking about it, really reinforced my connection to the brand and my loyalty. That's just a personal lane, though. I think that that happens a lot.

"A lot of contemporary thinking is all about the customer experience and trying to drive unique and bespoke customer experiences for people. And yes, you should absolutely do that. But that doesn't mean that points aren't also really, really powerful, or that the ability to actually redeem isn't really, really powerful in driving emotional connections. I think it's quite the opposite. The beauty also, of points, is you can do that at scale. I fly United because I'm here in Chicago. Think of all the United customers that are having this same experience that I am. That's probably millions. And that level of scale is very difficult to do with bespoke, one-off experiences. They are certainly going to wow your customers, but you can only do so many of those per year."

(16:38) Do you have any other examples of how predictive analytics are driving impactful customer engagement strategies?

Len: "Predictive analytics is certainly a massively underutilized tool for loyalty programs, I think. And so let me try to explain why. Do you know who Charlie Munger is Austin?"

Austin: “No, I don't.”

Len: "Charlie Munger is basically Warren Buffett's right-hand man. Well, maybe even saying right hand man is, not doing justice, he's Warren Buffett's partner at Berkshire Hathaway, a legendary investor and businessperson, right? One of the things he once said was, 'show me the incentive, and I'll show you the outcome', which is a very simple quote that just speaks to the power of incentives to drive human behavior. A loyalty currency is simply an incentive mechanism to drive the behaviors you want, at this most sort of basic form. It can be an incredibly powerful tool to drive member equity if you know what behaviors you want, which you know I spoke about earlier, we now do because we've studied the customer journey from an economic perspective and can identify those behaviors. It could be an incredibly powerful tool if, one, you know the behaviors you want to drive, and two, you know the optimal incentives to drive that behavior. The problem is the incentive that is optimal is different for each individual person.

"For example, I might require 1,000 bonus points to do something, whereas you Austin, maybe you require 5,000 points to motivate you enough to do the same thing. If you really want to maximize the effectiveness of your currency as an incentive mechanism, you need to do it with precision. You need to create personalized points-based offers for each member that maximize the likelihood that each individual is going to do the desired behavior. The problem here is most programs are not doing that. They're using their loyalty currency more as like a sledgehammer to incentivize where sort of everybody gets the same thing, rather than like a scalpel, where the right offers are sent to the right people with precision. And when we do this, you know, we're seeing incredible impact, like a two to five times improvement on ROI, on your campaigns. And so that's very worthwhile. And I think it's, you know, a great opportunity for all the loyalty programs out there.

"The key to it really is sophisticated predictive modeling, machine learning and a couple of proprietary algorithms that we've developed, or the tools that we found are extremely useful to unlock this value. You know, it's a great example of how predictive analytics can be really impactful and helpful to drive customer engagement strategies."

(19:16) I guess there's a nice segue there into redemption marketplaces, which obviously is where Loylogic's strength lies. How important is it from your perspective that you have a wide range of rewards options that entice and can be personalized, etc.? And secondly, how do you ensure that the proper liability accounting principles are in place to ensure the ongoing success, the sustainability, if you like, of that program?

Len: "Let me tackle Part B of that question first, because I think there's a lot to say that is really important. I mentioned earlier that redemption cost is the single largest expense in the loyalty program business model. So that alone makes it extremely important. You should spend a lot of time really understanding it, but it's unlike other business expenses. You know, if you're in the business of making widgets, you buy all the raw materials to make your widget, and then you make your widget and you sell it. And you know, immediately, without any uncertainty, the cost of making that widget, because you incur that cost immediately. That is not true with the loyalty program.

"With a loyalty program, you're issuing points today, you're selling your widget basically today, but you're not actually going to know how much it's going to cost you until people redeem those points, potentially years into the future. And by the way, a ton of them are not going to redeem the points. That's breakage that also affects the cost of these points. It's very, very different from other types of business models, and so it makes it even more challenging to try to understand what that cost is, what the redemption expense is going to be, which, again, is your single largest expense in your loyalty program business model, right?

"So, it's not really a good idea to run your loyalty program or any business without really understanding that expense, particularly as it's the largest one. So, we need to do this to ensure that the program is standing on a strong financial foundation. But a lot of programs are not spending a lot of time to do it right. It's very hard. It requires expertise, sort of at the intersection of actuarial science, data science, finance, accounting, economics and, of course, loyalty programs, which is just sort of really hard to find, and for most loyalty program managers, this is literally the most boring part of a loyalty program. They're loyalty marketers, they're excellent at, you know, building engaging strategies and campaigns and communicating with customers and creating incredible experiences, right? They're not experts at, you know, debits and credits on your balance sheet, or the nuances of actuarial analytics. Most of them, from my experience, don't really care too much about that stuff. It's extremely boring. Program managers are just not excited about doing this work. So, this work often gets sort of under invested, and that's why we exist. We find it interesting, but other people find it very boring and very hard, and just make it some into something very, very easy for loyalty programs."

“So that's sort of a lot of the context around why liability, proper liability management, is so important. You did have a question about the importance of having a lot of redemption options, and that is also really, really critical, less so for liability management, but more so for the broader success of the loyalty program. And let me explain what we always see when we look at the customer journey from an economic perspective is that redemption is a key inflection point in the customer journey.

“Whenever people redeem, we see a meaningful and often material increase in EFP. But what that means is you really want to enable people to redeem on the things that they want, right? You want to give them the option to be able to redeem on whatever is most valuable to them. And that's likely what's going to be the thing that creates that sort of emotional reaction when you get the redemption. And that's where Loylogic is extremely strong, right? And the value of what they do is they make it super easy for people to be able to have a wide range of redemption options that they can offer to their members. And so that's how and why having those redemption options is important to the success of a loyalty program."

(24:00) So my final question on the whole redemption marketplace side of things is, how can the methods that you employ ensure redemption marketplaces prevent short term counterproductive measures like currency devaluation?

Len: "This is a great, great question. When companies do that, it's, I think, a great example of not wanting to deal with building really sophisticated actuarial analytics to understand the financial foundation, and oftentimes the outcome is currency devaluation or removing popular redemption items to be annual budget targets. Forecasting redemption volumes is very difficult because programs are just so dynamic, and there's often, like, a very big lag between when the points are earned and when they'll actually be redeemed.

"What we've actually seen is programs not getting the right expertise and helping them produce accurate budgets. And as a result of that, they blow through their redemption budget for the year within just a few months. So, what do they do then? Well, they do drastic short-term things to meet their budgetary targets, right? So often that means shutting down a redemption option to reduce costs.

"The implication of that is, it's a terrible customer experience, right? You're gonna make your customers angry, which is never a good thing. And even beyond that, we know, as I spoke about earlier, redemption is always a key inflection point in the customer journey. So, you're really destroying EFP and member equity if you're not letting your customers redeem when they want to. So ultimately, you sort of get this short-term cost savings, but it comes at the cost of long-term loyalty and long-term profitability, which doesn't seem like the right trade off you ultimately want to make.

"The better solution here is just start your year with a good budget. And yes, in often cases, that means your budget for redemption costs will have to be much higher. But if you can credibly demonstrate that these redemptions drive amazing ROI, then it's absolutely a great idea to spend that money and then. So that's a big part of what we try to do with our engagements with our clients, is give them the tools to be able to articulate that and set accurate budgets so they don't run into these issues."

(26:14) Len, to wrap up the discussion, I want to just look ahead a little bit and look at how we future proof loyalty programs. So how do you envision the role of actuarial science evolving loyalty programs over the next five to 10 years, and what should businesses focus on to stay ahead?

Len: "Actuarial Science is all about long term prediction. We're predicting over long horizons so that we can make smarter business decisions today. So much about the economics of loyalty programs is centered around long-term outcomes, right? Redemption costs. Redemption on points you issue today will not happen for years in the future, right? So how are you supposed to estimate the cost at these points? Actuarial Sciences is the key.

"The value that a loyalty program creates comes from improving long-term retention, many periods into the future. So how do you quantify and prove that you're creating and finding the right levers that allow you to drive even more value? Actuarial Science is key here. If we really want to see the value that a loyalty program creates and learn the tactics that can maximize the value, I think actuarial science has to play a key role for in all loyalty programs. It's a big part of our mission to help programs around the world see that and make it easy for them to get the value of actuarial science in in their program."

(27:36) What practical advice can you provide businesses looking to integrate these approaches into their strategies?

Len: "Every single loyalty program is sitting on a goldmine of data. Every loyalty program has the data needed to be able to do what I described here today. The hard part is extracting the insights from the data. They say, you know, that data is the new oil, which is a great analogy. We're in an era where loyalty programs have basically struck oil, and now they need to build the infrastructure to extract and refine that oil, to capture the value, right? And so, you know, I think what a lot of loyalty programs can do today is really start working to set aside the budgets and make the investments in the analytics needed to really extract the value from that gold mine that they have, and start doing a lot of this, this research.

"From what I can tell and the work we've done, the ROIs are very clearly there. And most importantly, with this work, you could start actually quantifying in a very credible way what those ROIs are, so that you could turn those loyalty skeptics into loyalty advocates."

Xavier George, Global Director of Business Development at Loylogic, examines why traditional cashback programs are struggling to meet modern demands and how innovative, data-driven strategies can help banks reduce costs, boost engagement, and stay competitive in a changing financial landscape.

In the fiercely competitive financial services sector, customer retention is paramount, with cashback programs a cornerstone of customer retention strategies across all sectors, and especially for banks and financial institutions. In 2023, global cashback spending was estimated at approximately US$188.95 billion*.

However, in a rapidly evolving financial landscape, these programs are becoming a double-edged sword for the financial sector. They remain essential for staying competitive, but their rising costs are squeezing profit margins while offering diminishing returns in customer engagement.

For banks to thrive in today’s cashback landscape, they need to go beyond the slow, steady and often unremarkable accumulation of cashback rewards. Customers expect more; they want engagement, excitement, and personalization.

The challenges facing traditional cashback programs include:

1. High costs: Cashback programs often eat into profits, especially when designed with little flexibility or optimization. The sheer volume of transactions combined with fixed cashback rates makes these programs a costly affair.
2. Lack of engagement: Incremental cashback accumulation lacks the emotional pull of modern loyalty mechanisms. It’s a passive experience that doesn’t excite customers or encourage additional spending.
3. Operational inefficiencies: Many existing cashback systems operate independently of broader customer analytics, making it difficult to track and optimize reward distribution effectively.

These challenges will no doubt only become more acute over time too, especially as card cashback is projected to grow at a compound annual growth rate of 12.3% from 2024 to 2029, driven by consumer demand for more value in their purchases and supported by ongoing innovation in fintech and digital payment methods.

This leaves the financial sector with a pressing question: How can cashback programs evolve to meet these expectations without breaking the bank?

Rethinking customer engagement

To succeed, banks must rethink what cashback can be. Modern strategies need to integrate seamlessly with payment systems and data analytics, allowing for real-time tracking of customer behaviors and tailored reward mechanisms.

Instead of offering flat cashback rates, banks can explore dynamic reward systems—programs that incentivize specific behaviors, such as increased card usage, timely payments, or referrals. By gamifying rewards and offering instant gratification through unique experiences or virtual prizes, banks can foster stronger emotional connections with their customers.

Benefits of a smarter approach

1. Improved customer engagement: Rewards that are personalized and gamified create a sense of excitement, making customers more likely to interact with the program and stay loyal to the brand.
2. Cost efficiency: By shifting from flat-rate cashback to dynamic, behavior-driven rewards, banks can achieve the same—or better—customer engagement at a lower cost.
3. Competitive differentiation: In a crowded marketplace, innovative reward programs can help banks stand out and attract new customers.
4. Data-driven optimization: Seamless integration with analytics allows banks to measure the effectiveness of their cashback strategies and refine them in real time.

The future of financial cashback

To compete effectively, banks need to invest in technology that enables smarter, more flexible reward systems. By leveraging gamification and real-time data insights, financial institutions can create programs that not only drive customer loyalty but also contribute to long-term profitability.

The days of “one-size-fits-all” cashback are over. In their place, a new era of dynamic, engaging, and cost-effective reward strategies is taking shape. The banks that adapt will not only retain their customers but also secure a stronger foothold in a competitive market.

It’s time to rethink cashback—and make it a cornerstone of smarter, more impactful customer engagement.

First-mover advantage

At Loylogic, we've been at the forefront of loyalty and engagement innovation for over two decades. From launching the first Rewards Marketplace to introducing the Virtual Reward Card and pioneering cash-plus-points payments, our commitment to setting industry standards is unwavering. Today, we're excited about our latest innovation: Gift Hub—a cutting-edge solution designed to drive impactful, short-term consumer engagement across multiple industries, including banking.

Gift Hub empowers banks to define specific actions they wish to incentivize—such as credit card usage, referrals, or other behaviors that create value—and reward customers through instant gifts or virtual currency. This approach not only enhances consumer engagement but also reduces costs and drives higher sales. By integrating gamification and virtual rewards, Gift Hub offers solutions that are 50% more cost-effective than traditional cashback models.

The financial landscape is evolving, and so are consumer expectations. Customers now seek more personalized and immediate rewards. Traditional cashback programs, while effective, often lack the dynamism required to captivate today's consumers. Gift Hub addresses this gap by introducing gamified elements and instant gratification, making the reward experience more engaging and memorable.

For banks ready to lead the way, Gift Hub offers a first-mover advantage, helping to boost ROI, strengthen customer loyalty, and drive business results. By adopting this innovative approach, financial institutions can differentiate themselves in a crowded market, offering rewards that resonate with modern consumers.

In conclusion, the time is ripe for banks and financial institutions to rethink their cashback strategies. With escalating costs and changing consumer preferences, traditional models may no longer suffice. Embracing innovative solutions like Gift Hub can provide a competitive edge, ensuring that rewards programs are not only cost-effective but also aligned with the expectations of today's consumers. At Loylogic, we're committed to helping financial institutions grow through smarter engagement strategies. Are you ready to transform how you connect with your customers?

To rethink your cashback proposition, drive cost savings, and enhance customer engagement, contact us today: https://2ly.link/1ztLW

*Source

Xavier George, Global Director of Business Development at Loylogic, examines why traditional cashback programs are struggling to meet modern demands and how innovative, data-driven strategies can help banks reduce costs, boost engagement, and stay competitive in a changing financial landscape.

In the fiercely competitive financial services sector, customer retention is paramount, with cashback programs a cornerstone of customer retention strategies across all sectors, and especially for banks and financial institutions. In 2023, global cashback spending was estimated at approximately US$188.95 billion.

However, in a rapidly evolving financial landscape, these programs are becoming a double-edged sword for the financial sector. They remain essential for staying competitive, but their rising costs are squeezing profit margins while offering diminishing returns in customer engagement.

For banks to thrive in today’s cashback landscape, they need to go beyond the slow, steady and often unremarkable accumulation of cashback rewards. Customers expect more; they want engagement, excitement, and personalization.

The challenges facing traditional cashback programs include:

1. High costs: Cashback programs often eat into profits, especially when designed with little flexibility or optimization. The sheer volume of transactions combined with fixed cashback rates makes these programs a costly affair.
2. Lack of engagement: Incremental cashback accumulation lacks the emotional pull of modern loyalty mechanisms. It’s a passive experience that doesn’t excite customers or encourage additional spending.
3. Operational inefficiencies: Many existing cashback systems operate independently of broader customer analytics, making it difficult to track and optimize reward distribution effectively.

These challenges will no doubt only become more acute over time too, especially as card cashback is projected to grow at a compound annual growth rate of 12.3% from 2024 to 2029, driven by consumer demand for more value in their purchases and supported by ongoing innovation in fintech and digital payment methods.

This leaves the financial sector with a pressing question: How can cashback programs evolve to meet these expectations without breaking the bank?

Rethinking customer engagement

To succeed, banks must rethink what cashback can be. Modern strategies need to integrate seamlessly with payment systems and data analytics, allowing for real-time tracking of customer behaviors and tailored reward mechanisms.

Instead of offering flat cashback rates, banks can explore dynamic reward systems—programs that incentivize specific behaviors, such as increased card usage, timely payments, or referrals. By gamifying rewards and offering instant gratification through unique experiences or virtual prizes, banks can foster stronger emotional connections with their customers.

Benefits of a smarter approach

1. Improved customer engagement: Rewards that are personalized and gamified create a sense of excitement, making customers more likely to interact with the program and stay loyal to the brand.
2. Cost efficiency: By shifting from flat-rate cashback to dynamic, behavior-driven rewards, banks can achieve the same—or better—customer engagement at a lower cost.
3. Competitive differentiation: In a crowded marketplace, innovative reward programs can help banks stand out and attract new customers.
4. Data-driven optimization: Seamless integration with analytics allows banks to measure the effectiveness of their cashback strategies and refine them in real time.

The future of financial cashback

To compete effectively, banks need to invest in technology that enables smarter, more flexible reward systems. By leveraging gamification and real-time data insights, financial institutions can create programs that not only drive customer loyalty but also contribute to long-term profitability.

The days of “one-size-fits-all” cashback are over. In their place, a new era of dynamic, engaging, and cost-effective reward strategies is taking shape. The banks that adapt will not only retain their customers but also secure a stronger foothold in a competitive market.

It’s time to rethink cashback—and make it a cornerstone of smarter, more impactful customer engagement.

First-mover advantage

At Loylogic, we've been at the forefront of loyalty and engagement innovation for over two decades. From launching the first Rewards Marketplace to introducing the Virtual Reward Card and pioneering cash-plus-points payments, our commitment to setting industry standards is unwavering. Today, we're excited about our latest innovation: Gift Hub—a cutting-edge solution designed to drive impactful, short-term consumer engagement across multiple industries, including banking.

Gift Hub empowers banks to define specific actions they wish to incentivize—such as credit card usage, referrals, or other behaviors that create value—and reward customers through instant gifts or virtual currency. This approach not only enhances consumer engagement but also reduces costs and drives higher sales. By integrating gamification and virtual rewards, Gift Hub offers solutions that are 50% more cost-effective than traditional cashback models.

The financial landscape is evolving, and so are consumer expectations. Customers now seek more personalized and immediate rewards. Traditional cashback programs, while effective, often lack the dynamism required to captivate today's consumers. Gift Hub addresses this gap by introducing gamified elements and instant gratification, making the reward experience more engaging and memorable.

For banks ready to lead the way, Gift Hub offers a first-mover advantage, helping to boost ROI, strengthen customer loyalty, and drive business results. By adopting this innovative approach, financial institutions can differentiate themselves in a crowded market, offering rewards that resonate with modern consumers.

In conclusion, the time is ripe for banks and financial institutions to rethink their cashback strategies. With escalating costs and changing consumer preferences, traditional models may no longer suffice. Embracing innovative solutions like Gift Hub can provide a competitive edge, ensuring that rewards programs are not only cost-effective but also aligned with the expectations of today's consumers. At Loylogic, we're committed to helping financial institutions grow through smarter engagement strategies. Are you ready to transform how you connect with your customers?

To rethink your cashback proposition, drive cost savings, and enhance customer engagement, contact us today: https://2ly.link/1ztLW

*Source

Emma Shakespeare, Global Head of Sales at Loylogic, explores effective strategies to enhance loyalty program adoption and ensure enduring success.

In the dynamic landscape of the loyalty industry, balancing long-term and short-term adoption strategies is crucial for achieving both immediate engagement and sustainable growth. Customers today expect loyalty programs to deliver instant rewards while also offering lasting value. Programs that succeed in meeting these expectations combine short-term wins with long-term relationship-building, creating a balanced approach that drives enduring success.

That requires a number of effective strategies that combine to build loyalty program adoption and deliver sustained engagement.

Benefitting from short-term adoption strategies

Immediate engagement is pivotal in capturing the interest of new customers and encouraging their participation in loyalty programs. One effective method is behavior-based rewards, where new members receive bonus points or discounts for signing up or making their first purchase. These rewards provide instant gratification, motivating customers to engage with the program from the start.

Another powerful tactic is the use of limited-time offers, which create a sense of urgency and prompt swift action from customers. These promotions are particularly effective in driving immediate participation and building momentum.

Gamification also plays an important role in encouraging short-term engagement. By highlighting quick wins, such as easy ways to earn and redeem points through challenges or interactive features, loyalty programs demonstrate immediate value. Showing members how simple actions can lead to tangible rewards builds excitement and encourages continued participation.

Looking after new members

Capturing the enthusiasm of new members is essential for long-term success. To ensure the honeymoon period lasts as long as possible, it’s important to provide a comprehensive onboarding process that ensures that new members understand and appreciate the benefits of the loyalty program. A couple of strategies include:

1. Detailed onboarding campaigns that educate new members about the program's workings can both foster immediate engagement and drive enduring, long-term loyalty.

2. Demonstrating how to earn and use points, possibly with real-time examples, helps new members navigate the program with ease and confidence.

Strong customer support during the onboarding phase significantly enhances the experience, resolving any initial challenges and ensuring members start off positively. Offering tailored support to help new members get the most out of the program not only builds trust but also encourages early activity. Establishing clear feedback channels also allows loyalty programs to identify and resolve concerns quickly, enhancing satisfaction and encouraging members to remain active participants.

Continuous refinement and optimization drives ongoing engagement

Loyalty programs cannot afford to remain static. To maintain relevance and appeal, it is vital to continuously measure performance and optimize offerings. Regularly updating the rewards catalog with fresh, exciting options, such as seasonal rewards or partnerships with trending brands, ensures that members remain engaged.

Pilot launches and A/B testing are invaluable tools in refining loyalty programs. Testing new features, such as personalized offers or dynamic rewards, on a smaller scale allows for adjustments based on member feedback before a wider rollout. Similarly, A/B testing of different ad formats, offers, or messaging helps identify what resonates most with members, enabling programs to focus on strategies that drive the best results.

Personalization, powered by technologies like AI and machine learning, can further enhance optimization efforts. Tailored recommendations and dynamic messaging create more relevant experiences for members, helping them feel valued and deepening their loyalty to the program.

Focusing on long-term loyalty strategies

Creating a loyalty program that delivers long-term value is essential for sustained engagement and customer retention. Tiered programs are particularly effective for encouraging long-term loyalty by rewarding members with increasing benefits as they progress to higher tiers. These structures incentivize continued participation and reward brand commitment.

Offering exclusive experiences and services, such as VIP events, personalized perks, or early access to new products, creates emotional connections with members. These unique offerings make members feel valued and appreciated, enhancing their satisfaction and engagement.

Strategic partnerships are another critical element in building long-term loyalty. Collaborating with brands in complementary industries, such as travel, hospitality, or retail, can expand earning and redemption opportunities. These partnerships create a broader loyalty ecosystem, enhancing the program’s value and appeal.

To stay relevant and engaging over time, loyalty programs must embrace continuous innovation and regularly adapt to changing consumer preferences. Introducing new features, technologies, and services ensures that the program evolves alongside customer needs, maintaining its appeal.

Balancing both strategies

The most successful loyalty programs seamlessly integrate short-term and long-term strategies. For example, a gamified promotion might provide instant rewards while also encouraging members to progress to higher membership tiers. Insights gained from short-term strategies can inform long-term improvements, ensuring the program remains responsive to member needs.

By clearly communicating both the immediate and long-term benefits of the program, loyalty programs can reinforce their value proposition and build sustained member engagement. Combining immediate adoption tactics with strategies for long-term loyalty ensures programs remain dynamic, relevant, and effective at every stage of the customer journey.

By implementing this balanced approach, loyalty programs can achieve immediate traction and establish a foundation for lasting customer relationships and profitability.

Take your loyalty program to the next level

Ready to enhance engagement and drive lasting success? Explore how the right mix of short-term wins and long-term strategies can transform your loyalty program into a dynamic, customer-centric powerhouse. Click here to talk to our award-winning team.

Emma Shakespeare, Global Head of Sales at Loylogic, explores effective strategies to enhance loyalty program adoption and ensure enduring success.

In the dynamic landscape of the loyalty industry, balancing long-term and short-term adoption strategies is crucial for achieving both immediate engagement and sustainable growth. Customers today expect loyalty programs to deliver instant rewards while also offering lasting value. Programs that succeed in meeting these expectations combine short-term wins with long-term relationship-building, creating a balanced approach that drives enduring success.

That requires a number of effective strategies that combine to build loyalty program adoption and deliver sustained engagement.

Benefitting from short-term adoption strategies

Immediate engagement is pivotal in capturing the interest of new customers and encouraging their participation in loyalty programs. One effective method is behavior-based rewards, where new members receive bonus points or discounts for signing up or making their first purchase. These rewards provide instant gratification, motivating customers to engage with the program from the start.

Another powerful tactic is the use of limited-time offers, which create a sense of urgency and prompt swift action from customers. These promotions are particularly effective in driving immediate participation and building momentum.

Gamification also plays an important role in encouraging short-term engagement. By highlighting quick wins, such as easy ways to earn and redeem points through challenges or interactive features, loyalty programs demonstrate immediate value. Showing members how simple actions can lead to tangible rewards builds excitement and encourages continued participation.

Looking after new members

Capturing the enthusiasm of new members is essential for long-term success. To ensure the honeymoon period lasts as long as possible, it’s important to provide a comprehensive onboarding process that ensures that new members understand and appreciate the benefits of the loyalty program. A couple of strategies include:

1. Detailed onboarding campaigns that educate new members about the program's workings can both foster immediate engagement and drive enduring, long-term loyalty.

2. Demonstrating how to earn and use points, possibly with real-time examples, helps new members navigate the program with ease and confidence.

Strong customer support during the onboarding phase significantly enhances the experience, resolving any initial challenges and ensuring members start off positively. Offering tailored support to help new members get the most out of the program not only builds trust but also encourages early activity. Establishing clear feedback channels also allows loyalty programs to identify and resolve concerns quickly, enhancing satisfaction and encouraging members to remain active participants.

Continuous refinement and optimization drives ongoing engagement

Loyalty programs cannot afford to remain static. To maintain relevance and appeal, it is vital to continuously measure performance and optimize offerings. Regularly updating the rewards catalog with fresh, exciting options, such as seasonal rewards or partnerships with trending brands, ensures that members remain engaged.

Pilot launches and A/B testing are invaluable tools in refining loyalty programs. Testing new features, such as personalized offers or dynamic rewards, on a smaller scale allows for adjustments based on member feedback before a wider rollout. Similarly, A/B testing of different ad formats, offers, or messaging helps identify what resonates most with members, enabling programs to focus on strategies that drive the best results.

Personalization, powered by technologies like AI and machine learning, can further enhance optimization efforts. Tailored recommendations and dynamic messaging create more relevant experiences for members, helping them feel valued and deepening their loyalty to the program.

Focusing on long-term loyalty strategies

Creating a loyalty program that delivers long-term value is essential for sustained engagement and customer retention. Tiered programs are particularly effective for encouraging long-term loyalty by rewarding members with increasing benefits as they progress to higher tiers. These structures incentivize continued participation and reward brand commitment.

Offering exclusive experiences and services, such as VIP events, personalized perks, or early access to new products, creates emotional connections with members. These unique offerings make members feel valued and appreciated, enhancing their satisfaction and engagement.

Strategic partnerships are another critical element in building long-term loyalty. Collaborating with brands in complementary industries, such as travel, hospitality, or retail, can expand earning and redemption opportunities. These partnerships create a broader loyalty ecosystem, enhancing the program’s value and appeal.

To stay relevant and engaging over time, loyalty programs must embrace continuous innovation and regularly adapt to changing consumer preferences. Introducing new features, technologies, and services ensures that the program evolves alongside customer needs, maintaining its appeal.

Balancing both strategies

The most successful loyalty programs seamlessly integrate short-term and long-term strategies. For example, a gamified promotion might provide instant rewards while also encouraging members to progress to higher membership tiers. Insights gained from short-term strategies can inform long-term improvements, ensuring the program remains responsive to member needs.

By clearly communicating both the immediate and long-term benefits of the program, loyalty programs can reinforce their value proposition and build sustained member engagement. Combining immediate adoption tactics with strategies for long-term loyalty ensures programs remain dynamic, relevant, and effective at every stage of the customer journey.

By implementing this balanced approach, loyalty programs can achieve immediate traction and establish a foundation for lasting customer relationships and profitability.

Take your loyalty program to the next level

Ready to enhance engagement and drive lasting success? Explore how the right mix of short-term wins and long-term strategies can transform your loyalty program into a dynamic, customer-centric powerhouse. Click here to talk to our award-winning team.

As sports organizations strive to adapt to the challenges of modern fan engagement, one successful model offers a wealth of insights: Frequent Flyer Programs (FFPs). The best frequent flyer programs have revolutionized customer engagement for airlines, creating ecosystems that not only reward customers for their loyalty but also provide valuable data and unlock new revenue streams.

The good news, as was discussed in a recent episode of the Loylogic Podcast, From Frequent Flyer Programs to Fan Engagement Programs: How Loyalty Can Be the Savior of Sport,the principles that make FFPs successful can easily be applied to Fan Engagement Programs (FEPs), helping sports clubs and leagues build deeper connections with their audiences.

In this article we explore some of the key learnings from FFPs that loyalty experts Gabi Kool and Philip Shelper believe can transform how sports loyalty programs work. To listen to the podcast in full, simply click below, or read on to find out more.

1. Building a partner ecosystem for broader engagement

One of the most powerful elements of FFPs is their ability to create extensive partner networks, allowing customers to earn miles not just from flights but from everyday activities, such as shopping, dining, and using credit cards. Gabi, in the podcast, highlighted this key advantage: “Frequent flyer programs have built loyalty by creating ecosystems. Sports organizations should do the same, allowing fans to earn points through different touchpoints.”

FEPs can emulate this model by partnering with businesses and brands that resonate with fans, extending the ways in which they can engage. Fans could earn points not only from attending games but also from buying merchandise, subscribing to content, or interacting with a team’s sponsor network. This allows sports organizations to keep fans connected, even outside of game days, and opens up additional revenue opportunities.

2. Flexible and meaningful rewards are critical

FFPs succeed because they offer flexible ways for travelers to accrue points and redeem them for rewards that matter—whether it’s a free flight, an upgrade, or access to exclusive airport lounges. The key is in offering rewards that provide real value to customers, incentivizing them to stay loyal over the long term.

Fan Engagement Programs should also focus on offering a diverse range of rewards that appeal to different segments of their fanbase. As Philip explained, “Redemption is key. If fans can only use their points for things they don’t care about, it’s not going to work.”

For sports fans, valuable rewards could range from VIP tickets and exclusive team merchandise to once-in-a-lifetime experiences like meeting players or attending a training session. Offering a variety of options allows FEPs to cater to both casual and passionate fans, increasing the likelihood of sustained engagement.

3. Creating emotional bonds with fans

One of the strengths of FFPs is their ability to create emotional bonds between the airline and its customers. FFPs don’t just offer material rewards; they make customers feel recognized and valued. Priority boarding, access to lounges, and personalized offers are designed to make frequent flyers feel like part of an exclusive community.

In the sports world, the emotional connection between fans and teams is already strong, but FEPs can enhance this by offering personalized experiences that deepen that bond. Gabi noted, “Loyalty is about emotion. Offering a fan the chance to meet their favorite player or get behind-the-scenes access—that’s about creating memories.”

By offering exclusive experiences as rewards, FEPs can turn fan loyalty into something much more personal and meaningful, ensuring long-term support and engagement.

4. Unlocking hidden value in non-traditional fans

Just as FFPs allow even infrequent travelers to stay engaged through partner programs, FEPs can tap into non-traditional fans who may not attend games regularly but are passionate about the team. Philip emphasized, “There’s a huge segment of fans who aren’t going to games regularly but are engaging digitally. These fans are incredibly valuable.”

By allowing fans to earn points through digital interactions, such as watching live streams, following social media, or purchasing merchandise, FEPs can engage a wider audience and unlock value from fans who may otherwise be overlooked. This helps teams build a more inclusive engagement strategy that caters to fans wherever they are, whether in the stadium or at home.

5. Data is a key asset for tailored engagement

As discussed in a previous episode of the Loylogic Podcast - click here to listen - FFPs are known for generating vast amounts of data on customer preferences and behaviors, allowing airlines to tailor their offerings and communications. As Gabi noted, “Data is the future of fan engagement. Loyalty programs give you the tools to understand exactly how your fans are interacting with the club.”

FEPs can harness the same potential by using fan data to personalize the fan experience. By tracking how fans engage with digital content, attend games, or interact with sponsors, teams can create targeted marketing strategies, offer tailored rewards, and strengthen sponsor relationships. The data can also help sports organizations make smarter decisions, refine their offerings, and create fan experiences that are more aligned with individual preferences.

6. It is possible to monetize fan engagement

One of the biggest advantages of modern FFPs is their ability to monetize engagement across a wide range of activities, beyond just air travel. In the same way, FEPs can monetize fan interactions that go beyond the stadium. Philip observed, “Loyalty programs are a great way to monetize digital behavior. You don’t need fans to come to every game for them to stay loyal.”

By encouraging fans to engage with the team through multiple platforms—whether it’s mobile apps, live streams, or social media—FEPs can turn every interaction into a revenue opportunity. This approach is particularly effective for digital-first fans who may engage heavily online but don’t attend games in person. Monetizing fan engagement across platforms ensures that the club can capture value from fans wherever they are.

Fan Engagement Programs have the potential to revolutionize how sports organizations interact with their audiences. By learning from the success of frequent flyer programs, fan engagement programs can create broader ecosystems, offer meaningful rewards, and build emotional connections that deepen fan loyalty. With the right strategy, sports clubs can harness fan data, monetize digital engagement, and extend their reach to non-traditional fans.

In a rapidly changing sports landscape, the lessons from FFPs provide a proven model for success in the future of sports loyalty programs, helping organizations at all levels to overcome some serious challenges along the way.

As sports organizations strive to adapt to the challenges of modern fan engagement, one successful model offers a wealth of insights: Frequent Flyer Programs (FFPs). The best frequent flyer programs have revolutionized customer engagement for airlines, creating ecosystems that not only reward customers for their loyalty but also provide valuable data and unlock new revenue streams.

The good news, as was discussed in a recent episode of the Loylogic Podcast, From Frequent Flyer Programs to Fan Engagement Programs: How Loyalty Can Be the Savior of Sport,the principles that make FFPs successful can easily be applied to Fan Engagement Programs (FEPs), helping sports clubs and leagues build deeper connections with their audiences.

In this article we explore some of the key learnings from FFPs that loyalty experts Gabi Kool and Philip Shelper believe can transform how sports loyalty programs work. To listen to the podcast in full, simply click below, or read on to find out more.

1. Building a partner ecosystem for broader engagement

One of the most powerful elements of FFPs is their ability to create extensive partner networks, allowing customers to earn miles not just from flights but from everyday activities, such as shopping, dining, and using credit cards. Gabi, in the podcast, highlighted this key advantage: “Frequent flyer programs have built loyalty by creating ecosystems. Sports organizations should do the same, allowing fans to earn points through different touchpoints.”

FEPs can emulate this model by partnering with businesses and brands that resonate with fans, extending the ways in which they can engage. Fans could earn points not only from attending games but also from buying merchandise, subscribing to content, or interacting with a team’s sponsor network. This allows sports organizations to keep fans connected, even outside of game days, and opens up additional revenue opportunities.

2. Flexible and meaningful rewards are critical

FFPs succeed because they offer flexible ways for travelers to accrue points and redeem them for rewards that matter—whether it’s a free flight, an upgrade, or access to exclusive airport lounges. The key is in offering rewards that provide real value to customers, incentivizing them to stay loyal over the long term.

Fan Engagement Programs should also focus on offering a diverse range of rewards that appeal to different segments of their fanbase. As Philip explained, “Redemption is key. If fans can only use their points for things they don’t care about, it’s not going to work.”

For sports fans, valuable rewards could range from VIP tickets and exclusive team merchandise to once-in-a-lifetime experiences like meeting players or attending a training session. Offering a variety of options allows FEPs to cater to both casual and passionate fans, increasing the likelihood of sustained engagement.

3. Creating emotional bonds with fans

One of the strengths of FFPs is their ability to create emotional bonds between the airline and its customers. FFPs don’t just offer material rewards; they make customers feel recognized and valued. Priority boarding, access to lounges, and personalized offers are designed to make frequent flyers feel like part of an exclusive community.

In the sports world, the emotional connection between fans and teams is already strong, but FEPs can enhance this by offering personalized experiences that deepen that bond. Gabi noted, “Loyalty is about emotion. Offering a fan the chance to meet their favorite player or get behind-the-scenes access—that’s about creating memories.”

By offering exclusive experiences as rewards, FEPs can turn fan loyalty into something much more personal and meaningful, ensuring long-term support and engagement.

4. Unlocking hidden value in non-traditional fans

Just as FFPs allow even infrequent travelers to stay engaged through partner programs, FEPs can tap into non-traditional fans who may not attend games regularly but are passionate about the team. Philip emphasized, “There’s a huge segment of fans who aren’t going to games regularly but are engaging digitally. These fans are incredibly valuable.”

By allowing fans to earn points through digital interactions, such as watching live streams, following social media, or purchasing merchandise, FEPs can engage a wider audience and unlock value from fans who may otherwise be overlooked. This helps teams build a more inclusive engagement strategy that caters to fans wherever they are, whether in the stadium or at home.

5. Data is a key asset for tailored engagement

As discussed in a previous episode of the Loylogic Podcast - click here to listen - FFPs are known for generating vast amounts of data on customer preferences and behaviors, allowing airlines to tailor their offerings and communications. As Gabi noted, “Data is the future of fan engagement. Loyalty programs give you the tools to understand exactly how your fans are interacting with the club.”

FEPs can harness the same potential by using fan data to personalize the fan experience. By tracking how fans engage with digital content, attend games, or interact with sponsors, teams can create targeted marketing strategies, offer tailored rewards, and strengthen sponsor relationships. The data can also help sports organizations make smarter decisions, refine their offerings, and create fan experiences that are more aligned with individual preferences.

6. It is possible to monetize fan engagement

One of the biggest advantages of modern FFPs is their ability to monetize engagement across a wide range of activities, beyond just air travel. In the same way, FEPs can monetize fan interactions that go beyond the stadium. Philip observed, “Loyalty programs are a great way to monetize digital behavior. You don’t need fans to come to every game for them to stay loyal.”

By encouraging fans to engage with the team through multiple platforms—whether it’s mobile apps, live streams, or social media—FEPs can turn every interaction into a revenue opportunity. This approach is particularly effective for digital-first fans who may engage heavily online but don’t attend games in person. Monetizing fan engagement across platforms ensures that the club can capture value from fans wherever they are.

Fan Engagement Programs have the potential to revolutionize how sports organizations interact with their audiences. By learning from the success of frequent flyer programs, fan engagement programs can create broader ecosystems, offer meaningful rewards, and build emotional connections that deepen fan loyalty. With the right strategy, sports clubs can harness fan data, monetize digital engagement, and extend their reach to non-traditional fans.

In a rapidly changing sports landscape, the lessons from FFPs provide a proven model for success in the future of sports loyalty programs, helping organizations at all levels to overcome some serious challenges along the way.

Welcome to the latest episode of the Loylogic Podcast, From Frequent Flyer Programs to Fan Engagement Programs: How Loyalty Can Be the Savior of Sport.

The past few months have seen us enjoy a wonderful summer of sport, with the Paris Olympics and Paralympics, the Euro football championships, and an incredible Tour de France to name just some. But what happens once those big events are over? How can sport remain at the forefront of people’s attention? How can sports continue to drive participation and engagement with the help of loyalty?

In this episode, we focus on how fan engagement programs (FEPs) can offer a lifeline for clubs, leagues and sports federations amid changing media consumption trends and financial challenges. We discuss how loyalty can better engage fans, including those who attend games every week and the masses of hidden fans, and unpick how sports organizations can replicate the success and engagement expertise of frequent flyer programs (FFPs), to leverage fan loyalty to drive financial growth and emotional connection.

Joining us to share their views are Philip Shelper, CEO of loyalty consultancy and Loylogic partner Loyalty & Reward Co, and Loylogic’s CEO, Gabi Kool, who both have experience of the international sports arena. Philip has worked on a number of loyalty programs for international sports federations and an English Premiership football club. Gabi, away from his time at Loylogic, is president of the International Korfball Federation, which is an IOC Recognized Federation, where he’s a passionate advocate for the development of Korfball, which he hopes to see make it to a future Olympic Games.

To find out loyalty can be the savior of sport, listen below or read the full transcript further down the page.

(2:08) Gabi, for context, can you provide a quick overview of who the key stakeholders in the world of sport are and how it's structured?

Gabi: "The world of sport is a very complex ecosystem, so let me maybe run you through almost like a top 10 of the key players in there. So, if you start maybe at the top, it's the international sports organization level. That's where you will find the IOC. The IOC, of course, governs the Olympic Games and also recognizes the International Federations. In short, they're called the IFS who manage the individual sports and there are about 72 recognized by the by the IOC.

"Then you also have national Olympic Committees at that same level, so they represent the IOC at the national level and oversee the participation in the Olympics and also promote sports within their countries. Then at the second level, you have got something which is called national governing bodies, in short, called NGBs. In that group, you will find national federations who govern specific sports within individual countries. They're quite often under the umbrella of an IF so, for example, this would be the FA in England for football, but could also be professional leagues which organize and regulate professional competition within the country or region. To build on the FA example, which will be, then the Premier League in the UK, or the NFL or Serie A in Italy for football.

"At the third level, what you have in the ecosystem is clubs and teams. So, these are professional clubs who are competing in various leagues and competitions. But also, of course, national teams. Fourth layer would be athletes. Within there you've got professional athletes who compete at the highest level. But of course, maybe even more importantly, also the grassroots level, which are the amateur athletes.

"If you go to the next levels, you have event organizers. So often there are event management companies involved. Also host cities are a player in that ecosystem for large events. Another level would be sponsors and advertisers, where, basically, very often, you will find the investment in sports through the sponsorships. And then there are broadcasters and media rights. These are television networks, streaming platforms, media outlets etc.

"And then you've got the fans and spectators, who are another big group in the ecosystem, and then the last two would be government and regulatory bodies. So, for example, national governments often play an important role in the sport ecosystem, also via their financing and support, but also organizations like WADA, who are the anti-doping agency, or CAS, which is the Court of Arbitration for Sport.

"And then lastly, you've also got agents and managers playing a role there. All in all, it's a very interconnected ecosystem, especially I think in the topic of today's discussion around loyalty. It's interesting to think about what kind of fans and followers and kind of individual consumers are in connection to these kinds of layers, and how can you come up with compelling propositions there."

(5:12) As mentioned, there's lots of different stakeholders at different levels, and the ecosystem is interconnected. Are there any common challenges that you can draw out that all of these different stakeholders are facing?

Gabi: "So maybe I can start before Philip shares lots and lots of examples and experience as well dealing with a lot of the sport bodies around the world. The two key topics that I see coming across a lot is, of course, attracting income via sponsorship and media rights. It doesn't matter who I speak to, it's a topic that always comes up. It's always a challenge for a lot of the sports bodies. And then the second part, which is a bit linked to that, is the ability to reach the younger generation, especially because of their different media consumption patterns. So of course, there's tons and different kind of topics that will come up for all these examples that I mentioned previously, but those probably will be two major ones that I often see coming across."

Philip: "I think the main thing is the recognition that they're incredibly complex organizations. So, a major sports club would have numerous divisions covering ticketing, food and beverage, they'd have a merchandise team, people who look after the stadium, all the hospitality, sponsorships, media, they might have an Academy for teaching junior sport. They'll be doing some grassroots investment. They've got the memberships, transport for fans for away games and more. Compared to the average company, they're way more complex and have got so much more going on, and they never really know which way their fortunes are going, because that internal team can be doing everything perfectly, and yet the team is losing and so the amount of money that they get coming in for ticket sales or for media or for future seasons drops away. There's a lot that I think they need to take into account in planning what their future is going to be."

(7:24) Gabi, coming back to one of the challenges that you mentioned there, that I know you're very interested in, what are the specific problems around the current media landscape and the changing consumption habits, and how is that impacting sport?

Gabi: "I will give some examples, basically, kind of to paint the picture there a little bit. But if you take a step back, kind of what most sports organizations are dealing with, and especially also the larger ones as well, there's a fragmentation of viewership. With the rise of the streaming platforms, you see that audiences are increasingly spread across multiple channels, so it becomes much harder for traditional broadcasters to capture the large and unified audiences compared to what it used to be. So nowadays, with this fragmentation, you would have linear TV, these are companies like ESPN or Fox, you got streaming exclusive partners, which could be YouTube or Apple doing kind of a specific event via their kind of channels. There are streaming bundles, there's direct from leagues platforms like mlb.tv or like nba.tv and then, of course, you've got the second screens like TikTok or instar or snap, who are also starting to broadcast particular matches or content kind of in there. So, it becomes much more fragmented than what the sports organizations were used to dealing with. In light of that, they also see a declining traditional TV viewership, because, especially the younger generations, they prefer on demand mobile content and so that starts affecting the advertising revenues for the broadcasters.

"Then you'll also see topic of piracy in that space. So basically, a lot of people are consuming it via less formal kind of channels, in that sense. So, the ease of accessing illegal streams undermines the legitimate broadcaster’s revenue potential in there.

"All of that paints quite a complicated media landscape for them. And if I give you a numeric example, if you think about people in their 50s, 60s, they are probably worth about 1,000 euros per year for when it comes to sports media distribution. Then slightly younger, 30 to 40, probably they sit now at around 800 euros per year of what they represent in media distribution value. But then the younger ones are going to 700 euros and often quite far below. If you look at the Serie A as an example in the Italian Football League, all in all, it basically means that series lost about 304 million euros per season in the latest cycle. And of course, that financial shortfall creates all kind of challenges for the clubs associated so it's an example of where it starts hurting. And probably the main way to keep the attention or get the attention of the sports administrators is to follow the money in that part, because that's where usually it affects their ability to run their clubs or their organizations."

(9:13) Given this whole changing media consumption, does it mean that there's a whole untapped fan base that sport is now failing to engage and therefore monetize?

Philip: "I think there definitely is, that's what we refer to as hidden fans. And it's not just a modern phenomenon. It's something that has always existed, ever since television was invented. Actually, clubs are doing a better and better job of making it easier and easier for fans all around the world to engage with them, but there is a lot of fans who don't go to the games. They might buy merchandise, but there's no record of them buying that merchandise. They watch the games, but they might do it at the pub. So, they don't have any sort of subscription. There's no tracking of it. They go to work on a Monday and talk obsessively about how good or bad the game was, and so on and so forth. So in our estimates, that could be as much as 60 to 80% of the total fan base is completely hidden by a club, and that means that all the different opportunities for the club to drive engagement with that base and to monetize them, but also to recognize them and make them feel closer to the club  don't exist.

"From our perspective, there's enormous opportunity there that would be better for the clubs, but also better for the fans as well. And it's all about making it an easy and rewarding experience that they're attracted to enough to take the step of doing that formal engagement."

(12:08) Is that why sport is perfectly suited to loyalty?

Gabi: "I think if you if you look at the comparison to the frequent flyer program model, which has probably been the most successful in that particular space and has created enormous valuations for the airlines who own those loyalty programs, Qantas in kind of Philip's backyard, of course, is a great example. But also, if you look at all the US-based carriers, also European carriers, very often, their valuations are in the millions, even billions of dollars. And if you take a look at their model and basically unpack that, I think there's a very great blueprint for sports organizations to write on that part.

"If you look at an FFP, the key thing why that's so profitable is that on one hand side, they've got accrual partners where people can earn those miles. And basically, those accrual partners buy the miles from the airline at a relatively high cost per mile or per point, and then when those miles are being redeemed, there is a very high perceived value of the reward, i.e. the perishable airline seat, but the actual cost for the airline is much lower. So one of the big kind of secrets or tricks in these FFP models is like, you sell it at a much higher cost per point, and then when the member exchanges that for the reward, it's actually a much lower cost to you, but it has a very high perceived value.

"If you draw that parallel to the sports world, basically you would have to find a lot of accrual partners who are willing to buy a sports-related currency, either a currency linked to a club or a federation, or something like IOC level, maybe even in there. But then, when they use these sport-related points, you need to be able to offer them something which is relatively low cost to you as a program operator, but has got very high perceived value, so access to games, money can buy type experiences. There's a whole range of examples that we'll unpack a little bit more so, but the ecosystem of an FFP model is perfectly replicable in the sports world."

Philip: "I think one of the unique aspects of a sports team is a loyalty program is not needed to generate loyalty. The fans are already loyal. Some of them are obsessively loyal. And so, unlike an airline, where the airlines have to keep working very, very hard to maintain that share of wallet and stimulate the base to travel more, the sports teams kind of already have that. And actually, for many of the bigger sports teams, they don't have enough tickets to sell to each game, and so there is a slightly different dynamic there. So, I think the big opportunity for a loyalty program is to provide that better recognition and reward fans and make them feel like they do have that deeper connection in the same way that a good quality loyalty program would build emotional engagement between the member and the brand. It's that establishment of that formalized two-way relationship is where the big opportunity is.

"Now to Gabi's point and the frequent flyer model. I tend to agree. I think there is definitely some parallels there. You've got the club, you've got the obsessed fan base, you've then got sponsors, but you've also got other companies who would be interested in being connected to the club, that can't afford sponsorship, who might be happy to be earn partners. There's definitely the opportunity to build out that engaged ecosystem of companies that are buying points to give to the fans.

"Then on the other side, you've got all the money can't buy experiences that a club would be able to provide to the fans that they can redeem those points on as well. I think it's a really fascinating model."

(15:55) There's obviously a lot of opportunity there. Philip, what's the current situation when it comes to sport and loyalty, is the sports industry tapping into the benefits loyalty can bring, or you've touched on it already, is there so much more that can happen to drive engagement?

Philip: "They're barely scratching the surface at the moment. I think traditionally, teams have focused much more on memberships that provide fans with access to games, dedicated seating, discount hospitality packages. So, it's more that subscription loyalty program strategy, but they can definitely do a lot more to engage fans who can't or don't want to attend the live games. There are enormous amounts of fans out there who actually don't want to go to a game. They're obsessed about and would live and die for the team, but the idea of going to a game actually isn't that interesting to them. They might go to one or two, or they just can't get tickets, and all the tickets are too expensive, so they don't bother. So, building out a loyalty program that provides fans with a lot of other ways that they can engage in a way that is meaningful to them, is definitely something that clubs could do a lot better at."

Gabi: "I would build on Philip's input there. It also depends a little, if you think about a club, they need to do their kind of strategies, and they are only scratching the surface right now, but you see some interesting propositions coming. If you think about a national federation, the Football Federation, their national team only plays X number of times per year. So how do you basically keep the engagement going in between those kinds of games? If you think about an IOC when it's every two years when there's a winter games and a summer Olympics, you get massive attention during these kinds of games, but then how do you keep that ongoing engagement? There are different kind of propositions you can build on there. So, it also depends a little bit on how you design, what you design for whom, in that sense, on the proposition, because they've got different needs.

"I think in general, there are lots of opportunities. You see some emerging loyalty programs, but in terms of the sponsorship synergies or the data utilization, it's quite often still a bit ad hoc. It's not kind of a master plan embedded in a larger strategy of the organization."

Philip: “At a league level, the next level up, we're not really seeing anything at all, and I feel that's quite disappointing, because some of the leagues, particularly bigger leagues, could play a critical role in helping clubs to roll out comprehensive loyalty strategies. Loyalty is complex, it requires technology, it requires expertise, and you need to get the proper design. You need the right commercial model; you need operational excellence. So where we see a big opportunity is a league engaging a loyalty consultancy or company to design out a program, bring in the technology and enable that to be cascaded down to the teams, so that the teams can get access to something with shared cost and maybe a centralized operations team to run it for them, so the whole league can actually have a good quality design loyalty program for their club with a fraction of the cost of what it would be if they tried to design it out themselves."

(19:17) I guess a big part of that is knowing what excites fans and what actually drives engagement. So, Gabi, how do you see that playing it? What are the trends that you're seeing?

Gabi: "I just came back from the Paris Games at the opening ceremony in my other kind of hat, as President of the International Korfball Federation. I had a chance to speak with a lot of the presidents of other International Federations. And exactly to Phil's point, how can you maybe do things collectively together, for big impact, because you might not have the individual resources available between each of the IFs. But if you bundle your kind of efforts, you can do much bigger things, and also you might have got a couple of million followers there, and another Federation is kind of there, so the scale can be enormous, right?

"I think it comes down to what are these fans kind of looking for. It varies a little bit. Is it the exclusive content and behind the scenes access? There are some notable examples on fan tokenization, NFTs, what people can do with it. But also, what we see is a lot of interest on how can you bring the physical sport world together with the eSports world? The esports world is also massively growing. Saudi Arabia just signed an agreement with the IOC for the next 12 years to have the Olympic esport games in Saudi and they're expecting that to turn into a $13 billion kind of industry just for the Kingdom of Saudi Arabia alone. You see massive groups of youngsters also in that kind of space. When you think about the rewards and the content. The sky's the limit actually."

(21:03) Coming back to what you were saying earlier about the airline loyalty program side of things. What can sport learn from those frequent flyer programs, and how can they bring that success to the fore for the good of the sporting community?

Gabi: "The internal tagline that we're using when we talk about how we see ourselves helping and supporting sports organizations, we call it from FFP to FEP: from frequent flyer programs to fan engagement programs.

"Where we think that sport communities can learn best is to replicate a lot of the great thinking on how you set up such an ecosystem? How do you manage it? How do you commercialize it? It starts by creating a big idea. It doesn't matter if it's a club or a federation or an IF, basically whatever the audience is in there. So, you create a big idea with a high-level engagement vision. Then based on that, you define the blueprint of your program, which should include all the key elements for such a fan engagement proposition. Program concept, program organization, business case. And then when you've done that, you validate that blueprint with all the stakeholders involved in your FEP, including the sponsors, the fans, and especially also the accrual partners, if you think about kind of a point space, because they will have to fund the currency.

"On the redemption side, you need to make sure you've got a very robust and creative offering in place which the members can spend their currency on. Probably the question is, do you go alone as an organization, or do you go together with a group of organizations? And then there's kind of people like us out there to help. There's so much knowledge in there, and you don't need to reinvent the wheel, right? That's kind of, I think, one of the key things for these sports organizations, because loyalty is complex, and therefore you need to make sure you don't make it more complex than it needs to be."

(23:12) Philip, what would be the right loyalty strategy?

Philip: "I definitely would always lean towards the club or the league owning the program so that they've got full control. I think the likes of socios.com has been attractive to a lot of clubs because it's very much a plug and play solution, and it provides some instant revenue for the club without them having to do anything. But certainly, the opportunity, the monetization and having control of that fan experience is going to work much better if they do own the program.

"So, I think if it's a big club, they should definitely be going their own. They're going to have the scale of fans to be able to layer a loyalty program over that very effectively. If it is smaller clubs, then, as I was talking about earlier, getting the league to build out the capabilities which can then cascade down to individual clubs would be a great way to do it, and it save them a lot of cost. But also building up those partnership networks could work across multiple teams and provide fans with lots of opportunities to earn points or currency or credits, whatever it might be to then use with their specific club."

(24:26) So where does loyalty come into play in overcoming the challenge of the changing media kind of situation?

Gabi: "I think there's an enormous monetization opportunity there, like if we draw back to the parallel to the ecosystem of how frequent flyer programs are being run, if you would replicate setups like that, you can create enormous income for the entities, but you need to design it properly. You need to think it through carefully on who those accrual partners would be for your fan base, what kind of brands would like to get in touch with your community. We tend to refer to this as Brands 2 Communities, which means if you understand the DNA of your community, then you understand what kind of brands would like to get their content or stories or offers in front of that particular community.

"Of course, you've got existing sponsors of clubs or federations or IFs out there, but you can also basically extend that to the accrual partnership network very easily. So I think the with the media income under pressure, loyalty offers a great opportunity for sports bodies to generate new income, and if designed well, also these media partners that need a helping hand in there can also find their way within such a loyalty ecosystem to get their media rights and media opportunities much better monetized in a very fragmented kind of landscape. So that's how I see the opportunity for large sports organizations."

(25:52) Wrapping up a lot of what we've already talked about here, what's the member value in this new loyalty led world of sport?

Gabi: "I think to the earlier discussion, fans are deeply in love with their sport or their club, right? What they're looking for is personalization, recognition if they've been a lifelong fan, to being part of the community. So really, that sense of belonging, but also having some kind of an influence or access to certain kinds of content in the recognition element, the exclusive access special rewards are what I think the fans are looking for, in this case, the members.

"The flip side of the what the clubs or the federations are looking for comes from the fact that a lot of these people in sports, would love, basically, for people to support their club or their sport, but they also are very passionate about getting people to move in general, because we see a lot of data out there of the world getting more obese, younger generations being less involved in clubs and organized sport. The true enemy is not moving and not being involved in sport. Yes, you try to do your best for your federation, your club, to get people involved in there and highly competitive on the pitches, as Philip mentioned. But basically, the much, much bigger opportunity that people are deeply passionate about, I've seen, is how you get people connected to sport, and I think that's where, integral loyalty platform or ecosystems can really play a role."

(27:24) So for sporting organizations, where do they start? What challenges do you think they should aim to solve, first through loyalty programs?

Philip: "I definitely think that they should start with better recognition of their long-term fans. If they try to do anything else, then they'll get those long-term fans offside. But it's very easy to do it. One of the clubs that we're working with identified when a fan who was having their birthday was going to be at a club, going to be at a game, and they actually delivered a cake to them during half time, right? There are a lot of very small, quite low-cost things you can do to really make someone provide them with an experience they're going to remember the rest of their life.

"I think providing more opportunities to for fans to influence hard decisions would be a really great thing. Clubs generally do not like this. They don't want to be giving control over to the fans, but even giving them some say on a few different things, I think would definitely appeal to them. Then, it's all about reaching out to that hidden fan base and engaging them as best as possible, and then providing better sponsor promotion. Sponsors are paying a lot of money for the right to put their brand on the team jersey, and anything that can be done in order to better support sponsors, particularly through a loyalty program stimulating fans to go and spend with the sponsors and be able to track that is going to be hugely beneficial to the sponsor in demonstrating the value they're getting from the sponsorship, as well as for the club, in getting the sponsor to sign up for the next."

(29:14) Gabi, how should sports organizations move forward?

Gabi: "I think the old saying of go slow in order to go fast is also valid here, because you do basically get a lot more value if you think as a sports organization, "Okay, what is kind of our plan? What do we want to kind of build in there?" And then, create your big idea, create a program blueprint, validate it, then kind of launch it. I think that would be the right approach in there.

"On a practical level, the examples that Philip referred to, it’s true that sponsors, you can almost draw a parallel between them and the number one funding partner in airline loyalty programs, which are co-brand credit card offerings. But if you see how difficult it is even for that organization to communicate directly via the airline's database. Basically, you can see similarities there between the sponsor community with a sports organization on how difficult it is for them to get in touch with the fans directly, so facilitating that direct engagement in that ecosystem, whereas airlines need to almost think like becoming marketing machines for their partners, sports organizations also have that opportunity, and quite often it's not well enough thought through by a sponsor, and how can you then leverage and engage with that community kind of in there, right? So that's, that's one thing in the design.

"I think in the next step, what I would encourage sports organizations to think about and understand and learn how valuable these loyalty entities could become, just in their own right, as an additional asset for a sports organization. And there's some really good examples out there, and that's kind of what I would encourage them to do as a next step."

(30:57) Coming back to the bold claim that we made at the outset of the discussion, how can loyalty be the savior of sport?

Gabi: "I do think this from FFP to FEP idea might be the proposition here, right? So how can you go from the frequent flyer program thinking to a fan engagement program thinking in there? The opportunity is there for the first number of sports organizations to create multi billion-dollar valuations via such an entity. But the airlines also didn't get that overnight, right? They basically had to build it, the technology, the thinking, the fan base, the offering kind of in there. So, while there are learnings to be taken in there, and plenty of support from companies such as ourselves, Loylogic and Loyalty and Reward Co, it will not happen as a miracle overnight, right? This is kind of a long-term engagement, and therefore you also need to think about what you want to do. It's not like a marketing gimmick where you just kind of do something and then basically, the dollars will fly in. That's not how it works. It needs to be an integral part of the club's or the Federation's strategy. There will be early movers in there that will take the time to think about it in that way, and there will be more tactical, ad hoc type initiatives, and I think the first group will be more successful with that."

Philip: I agree. I think the reality is that a lot of sports clubs and even leagues are not as lucrative and cashed up as what fans and people might perceive them to be. Certainly, there is a small number of clubs that are doing incredibly well, but they tend to be in the minority. Most clubs are trying to get together enough revenue and most of that goes into buying new players and putting on games. Any opportunity for a club to be able to build out a sizable new revenue stream should be highly attractive to them.

"And as per Gabi's talk of the frequent flyer program or the fan engagement program using the points earn and redemption economics, there's a really great opportunity there, but it does need to be symbiotic. It's not just enough to say, great, let's monetize our highly loyal fan base. It needs to be done in a way that provides fans with desirable, motivating value, so that they're getting something out of it, and the club is also getting something out of it. And

Really, the key to that is access. That's what the fans really want. They want access to players. They want access to the games. They want access to limited edition merchandise value offers, things that are really going to get them excited about engaging with that program, and then you've got a winning, successful recipe there."

Welcome to the latest episode of the Loylogic Podcast, From Frequent Flyer Programs to Fan Engagement Programs: How Loyalty Can Be the Savior of Sport.

The past few months have seen us enjoy a wonderful summer of sport, with the Paris Olympics and Paralympics, the Euro football championships, and an incredible Tour de France to name just some. But what happens once those big events are over? How can sport remain at the forefront of people’s attention? How can sports continue to drive participation and engagement with the help of loyalty?

In this episode, we focus on how fan engagement programs (FEPs) can offer a lifeline for clubs, leagues and sports federations amid changing media consumption trends and financial challenges. We discuss how loyalty can better engage fans, including those who attend games every week and the masses of hidden fans, and unpick how sports organizations can replicate the success and engagement expertise of frequent flyer programs (FFPs), to leverage fan loyalty to drive financial growth and emotional connection.

Joining us to share their views are Philip Shelper, CEO of loyalty consultancy and Loylogic partner Loyalty & Reward Co, and Loylogic’s CEO, Gabi Kool, who both have experience of the international sports arena. Philip has worked on a number of loyalty programs for international sports federations and an English Premiership football club. Gabi, away from his time at Loylogic, is president of the International Korfball Federation, which is an IOC Recognized Federation, where he’s a passionate advocate for the development of Korfball, which he hopes to see make it to a future Olympic Games.

To find out loyalty can be the savior of sport, listen below or read the full transcript further down the page.

(2:08) Gabi, for context, can you provide a quick overview of who the key stakeholders in the world of sport are and how it's structured?

Gabi: "The world of sport is a very complex ecosystem, so let me maybe run you through almost like a top 10 of the key players in there. So, if you start maybe at the top, it's the international sports organization level. That's where you will find the IOC. The IOC, of course, governs the Olympic Games and also recognizes the International Federations. In short, they're called the IFS who manage the individual sports and there are about 72 recognized by the by the IOC.

"Then you also have national Olympic Committees at that same level, so they represent the IOC at the national level and oversee the participation in the Olympics and also promote sports within their countries. Then at the second level, you have got something which is called national governing bodies, in short, called NGBs. In that group, you will find national federations who govern specific sports within individual countries. They're quite often under the umbrella of an IF so, for example, this would be the FA in England for football, but could also be professional leagues which organize and regulate professional competition within the country or region. To build on the FA example, which will be, then the Premier League in the UK, or the NFL or Serie A in Italy for football.

"At the third level, what you have in the ecosystem is clubs and teams. So, these are professional clubs who are competing in various leagues and competitions. But also, of course, national teams. Fourth layer would be athletes. Within there you've got professional athletes who compete at the highest level. But of course, maybe even more importantly, also the grassroots level, which are the amateur athletes.

"If you go to the next levels, you have event organizers. So often there are event management companies involved. Also host cities are a player in that ecosystem for large events. Another level would be sponsors and advertisers, where, basically, very often, you will find the investment in sports through the sponsorships. And then there are broadcasters and media rights. These are television networks, streaming platforms, media outlets etc.

"And then you've got the fans and spectators, who are another big group in the ecosystem, and then the last two would be government and regulatory bodies. So, for example, national governments often play an important role in the sport ecosystem, also via their financing and support, but also organizations like WADA, who are the anti-doping agency, or CAS, which is the Court of Arbitration for Sport.

"And then lastly, you've also got agents and managers playing a role there. All in all, it's a very interconnected ecosystem, especially I think in the topic of today's discussion around loyalty. It's interesting to think about what kind of fans and followers and kind of individual consumers are in connection to these kinds of layers, and how can you come up with compelling propositions there."

(5:12) As mentioned, there's lots of different stakeholders at different levels, and the ecosystem is interconnected. Are there any common challenges that you can draw out that all of these different stakeholders are facing?

Gabi: "So maybe I can start before Philip shares lots and lots of examples and experience as well dealing with a lot of the sport bodies around the world. The two key topics that I see coming across a lot is, of course, attracting income via sponsorship and media rights. It doesn't matter who I speak to, it's a topic that always comes up. It's always a challenge for a lot of the sports bodies. And then the second part, which is a bit linked to that, is the ability to reach the younger generation, especially because of their different media consumption patterns. So of course, there's tons and different kind of topics that will come up for all these examples that I mentioned previously, but those probably will be two major ones that I often see coming across."

Philip: "I think the main thing is the recognition that they're incredibly complex organizations. So, a major sports club would have numerous divisions covering ticketing, food and beverage, they'd have a merchandise team, people who look after the stadium, all the hospitality, sponsorships, media, they might have an Academy for teaching junior sport. They'll be doing some grassroots investment. They've got the memberships, transport for fans for away games and more. Compared to the average company, they're way more complex and have got so much more going on, and they never really know which way their fortunes are going, because that internal team can be doing everything perfectly, and yet the team is losing and so the amount of money that they get coming in for ticket sales or for media or for future seasons drops away. There's a lot that I think they need to take into account in planning what their future is going to be."

(7:24) Gabi, coming back to one of the challenges that you mentioned there, that I know you're very interested in, what are the specific problems around the current media landscape and the changing consumption habits, and how is that impacting sport?

Gabi: "I will give some examples, basically, kind of to paint the picture there a little bit. But if you take a step back, kind of what most sports organizations are dealing with, and especially also the larger ones as well, there's a fragmentation of viewership. With the rise of the streaming platforms, you see that audiences are increasingly spread across multiple channels, so it becomes much harder for traditional broadcasters to capture the large and unified audiences compared to what it used to be. So nowadays, with this fragmentation, you would have linear TV, these are companies like ESPN or Fox, you got streaming exclusive partners, which could be YouTube or Apple doing kind of a specific event via their kind of channels. There are streaming bundles, there's direct from leagues platforms like mlb.tv or like nba.tv and then, of course, you've got the second screens like TikTok or instar or snap, who are also starting to broadcast particular matches or content kind of in there. So, it becomes much more fragmented than what the sports organizations were used to dealing with. In light of that, they also see a declining traditional TV viewership, because, especially the younger generations, they prefer on demand mobile content and so that starts affecting the advertising revenues for the broadcasters.

"Then you'll also see topic of piracy in that space. So basically, a lot of people are consuming it via less formal kind of channels, in that sense. So, the ease of accessing illegal streams undermines the legitimate broadcaster’s revenue potential in there.

"All of that paints quite a complicated media landscape for them. And if I give you a numeric example, if you think about people in their 50s, 60s, they are probably worth about 1,000 euros per year for when it comes to sports media distribution. Then slightly younger, 30 to 40, probably they sit now at around 800 euros per year of what they represent in media distribution value. But then the younger ones are going to 700 euros and often quite far below. If you look at the Serie A as an example in the Italian Football League, all in all, it basically means that series lost about 304 million euros per season in the latest cycle. And of course, that financial shortfall creates all kind of challenges for the clubs associated so it's an example of where it starts hurting. And probably the main way to keep the attention or get the attention of the sports administrators is to follow the money in that part, because that's where usually it affects their ability to run their clubs or their organizations."

(9:13) Given this whole changing media consumption, does it mean that there's a whole untapped fan base that sport is now failing to engage and therefore monetize?

Philip: "I think there definitely is, that's what we refer to as hidden fans. And it's not just a modern phenomenon. It's something that has always existed, ever since television was invented. Actually, clubs are doing a better and better job of making it easier and easier for fans all around the world to engage with them, but there is a lot of fans who don't go to the games. They might buy merchandise, but there's no record of them buying that merchandise. They watch the games, but they might do it at the pub. So, they don't have any sort of subscription. There's no tracking of it. They go to work on a Monday and talk obsessively about how good or bad the game was, and so on and so forth. So in our estimates, that could be as much as 60 to 80% of the total fan base is completely hidden by a club, and that means that all the different opportunities for the club to drive engagement with that base and to monetize them, but also to recognize them and make them feel closer to the club  don't exist.

"From our perspective, there's enormous opportunity there that would be better for the clubs, but also better for the fans as well. And it's all about making it an easy and rewarding experience that they're attracted to enough to take the step of doing that formal engagement."

(12:08) Is that why sport is perfectly suited to loyalty?

Gabi: "I think if you if you look at the comparison to the frequent flyer program model, which has probably been the most successful in that particular space and has created enormous valuations for the airlines who own those loyalty programs, Qantas in kind of Philip's backyard, of course, is a great example. But also, if you look at all the US-based carriers, also European carriers, very often, their valuations are in the millions, even billions of dollars. And if you take a look at their model and basically unpack that, I think there's a very great blueprint for sports organizations to write on that part.

"If you look at an FFP, the key thing why that's so profitable is that on one hand side, they've got accrual partners where people can earn those miles. And basically, those accrual partners buy the miles from the airline at a relatively high cost per mile or per point, and then when those miles are being redeemed, there is a very high perceived value of the reward, i.e. the perishable airline seat, but the actual cost for the airline is much lower. So one of the big kind of secrets or tricks in these FFP models is like, you sell it at a much higher cost per point, and then when the member exchanges that for the reward, it's actually a much lower cost to you, but it has a very high perceived value.

"If you draw that parallel to the sports world, basically you would have to find a lot of accrual partners who are willing to buy a sports-related currency, either a currency linked to a club or a federation, or something like IOC level, maybe even in there. But then, when they use these sport-related points, you need to be able to offer them something which is relatively low cost to you as a program operator, but has got very high perceived value, so access to games, money can buy type experiences. There's a whole range of examples that we'll unpack a little bit more so, but the ecosystem of an FFP model is perfectly replicable in the sports world."

Philip: "I think one of the unique aspects of a sports team is a loyalty program is not needed to generate loyalty. The fans are already loyal. Some of them are obsessively loyal. And so, unlike an airline, where the airlines have to keep working very, very hard to maintain that share of wallet and stimulate the base to travel more, the sports teams kind of already have that. And actually, for many of the bigger sports teams, they don't have enough tickets to sell to each game, and so there is a slightly different dynamic there. So, I think the big opportunity for a loyalty program is to provide that better recognition and reward fans and make them feel like they do have that deeper connection in the same way that a good quality loyalty program would build emotional engagement between the member and the brand. It's that establishment of that formalized two-way relationship is where the big opportunity is.

"Now to Gabi's point and the frequent flyer model. I tend to agree. I think there is definitely some parallels there. You've got the club, you've got the obsessed fan base, you've then got sponsors, but you've also got other companies who would be interested in being connected to the club, that can't afford sponsorship, who might be happy to be earn partners. There's definitely the opportunity to build out that engaged ecosystem of companies that are buying points to give to the fans.

"Then on the other side, you've got all the money can't buy experiences that a club would be able to provide to the fans that they can redeem those points on as well. I think it's a really fascinating model."

(15:55) There's obviously a lot of opportunity there. Philip, what's the current situation when it comes to sport and loyalty, is the sports industry tapping into the benefits loyalty can bring, or you've touched on it already, is there so much more that can happen to drive engagement?

Philip: "They're barely scratching the surface at the moment. I think traditionally, teams have focused much more on memberships that provide fans with access to games, dedicated seating, discount hospitality packages. So, it's more that subscription loyalty program strategy, but they can definitely do a lot more to engage fans who can't or don't want to attend the live games. There are enormous amounts of fans out there who actually don't want to go to a game. They're obsessed about and would live and die for the team, but the idea of going to a game actually isn't that interesting to them. They might go to one or two, or they just can't get tickets, and all the tickets are too expensive, so they don't bother. So, building out a loyalty program that provides fans with a lot of other ways that they can engage in a way that is meaningful to them, is definitely something that clubs could do a lot better at."

Gabi: "I would build on Philip's input there. It also depends a little, if you think about a club, they need to do their kind of strategies, and they are only scratching the surface right now, but you see some interesting propositions coming. If you think about a national federation, the Football Federation, their national team only plays X number of times per year. So how do you basically keep the engagement going in between those kinds of games? If you think about an IOC when it's every two years when there's a winter games and a summer Olympics, you get massive attention during these kinds of games, but then how do you keep that ongoing engagement? There are different kind of propositions you can build on there. So, it also depends a little bit on how you design, what you design for whom, in that sense, on the proposition, because they've got different needs.

"I think in general, there are lots of opportunities. You see some emerging loyalty programs, but in terms of the sponsorship synergies or the data utilization, it's quite often still a bit ad hoc. It's not kind of a master plan embedded in a larger strategy of the organization."

Philip: “At a league level, the next level up, we're not really seeing anything at all, and I feel that's quite disappointing, because some of the leagues, particularly bigger leagues, could play a critical role in helping clubs to roll out comprehensive loyalty strategies. Loyalty is complex, it requires technology, it requires expertise, and you need to get the proper design. You need the right commercial model; you need operational excellence. So where we see a big opportunity is a league engaging a loyalty consultancy or company to design out a program, bring in the technology and enable that to be cascaded down to the teams, so that the teams can get access to something with shared cost and maybe a centralized operations team to run it for them, so the whole league can actually have a good quality design loyalty program for their club with a fraction of the cost of what it would be if they tried to design it out themselves."

(19:17) I guess a big part of that is knowing what excites fans and what actually drives engagement. So, Gabi, how do you see that playing it? What are the trends that you're seeing?

Gabi: "I just came back from the Paris Games at the opening ceremony in my other kind of hat, as President of the International Korfball Federation. I had a chance to speak with a lot of the presidents of other International Federations. And exactly to Phil's point, how can you maybe do things collectively together, for big impact, because you might not have the individual resources available between each of the IFs. But if you bundle your kind of efforts, you can do much bigger things, and also you might have got a couple of million followers there, and another Federation is kind of there, so the scale can be enormous, right?

"I think it comes down to what are these fans kind of looking for. It varies a little bit. Is it the exclusive content and behind the scenes access? There are some notable examples on fan tokenization, NFTs, what people can do with it. But also, what we see is a lot of interest on how can you bring the physical sport world together with the eSports world? The esports world is also massively growing. Saudi Arabia just signed an agreement with the IOC for the next 12 years to have the Olympic esport games in Saudi and they're expecting that to turn into a $13 billion kind of industry just for the Kingdom of Saudi Arabia alone. You see massive groups of youngsters also in that kind of space. When you think about the rewards and the content. The sky's the limit actually."

(21:03) Coming back to what you were saying earlier about the airline loyalty program side of things. What can sport learn from those frequent flyer programs, and how can they bring that success to the fore for the good of the sporting community?

Gabi: "The internal tagline that we're using when we talk about how we see ourselves helping and supporting sports organizations, we call it from FFP to FEP: from frequent flyer programs to fan engagement programs.

"Where we think that sport communities can learn best is to replicate a lot of the great thinking on how you set up such an ecosystem? How do you manage it? How do you commercialize it? It starts by creating a big idea. It doesn't matter if it's a club or a federation or an IF, basically whatever the audience is in there. So, you create a big idea with a high-level engagement vision. Then based on that, you define the blueprint of your program, which should include all the key elements for such a fan engagement proposition. Program concept, program organization, business case. And then when you've done that, you validate that blueprint with all the stakeholders involved in your FEP, including the sponsors, the fans, and especially also the accrual partners, if you think about kind of a point space, because they will have to fund the currency.

"On the redemption side, you need to make sure you've got a very robust and creative offering in place which the members can spend their currency on. Probably the question is, do you go alone as an organization, or do you go together with a group of organizations? And then there's kind of people like us out there to help. There's so much knowledge in there, and you don't need to reinvent the wheel, right? That's kind of, I think, one of the key things for these sports organizations, because loyalty is complex, and therefore you need to make sure you don't make it more complex than it needs to be."

(23:12) Philip, what would be the right loyalty strategy?

Philip: "I definitely would always lean towards the club or the league owning the program so that they've got full control. I think the likes of socios.com has been attractive to a lot of clubs because it's very much a plug and play solution, and it provides some instant revenue for the club without them having to do anything. But certainly, the opportunity, the monetization and having control of that fan experience is going to work much better if they do own the program.

"So, I think if it's a big club, they should definitely be going their own. They're going to have the scale of fans to be able to layer a loyalty program over that very effectively. If it is smaller clubs, then, as I was talking about earlier, getting the league to build out the capabilities which can then cascade down to individual clubs would be a great way to do it, and it save them a lot of cost. But also building up those partnership networks could work across multiple teams and provide fans with lots of opportunities to earn points or currency or credits, whatever it might be to then use with their specific club."

(24:26) So where does loyalty come into play in overcoming the challenge of the changing media kind of situation?

Gabi: "I think there's an enormous monetization opportunity there, like if we draw back to the parallel to the ecosystem of how frequent flyer programs are being run, if you would replicate setups like that, you can create enormous income for the entities, but you need to design it properly. You need to think it through carefully on who those accrual partners would be for your fan base, what kind of brands would like to get in touch with your community. We tend to refer to this as Brands 2 Communities, which means if you understand the DNA of your community, then you understand what kind of brands would like to get their content or stories or offers in front of that particular community.

"Of course, you've got existing sponsors of clubs or federations or IFs out there, but you can also basically extend that to the accrual partnership network very easily. So I think the with the media income under pressure, loyalty offers a great opportunity for sports bodies to generate new income, and if designed well, also these media partners that need a helping hand in there can also find their way within such a loyalty ecosystem to get their media rights and media opportunities much better monetized in a very fragmented kind of landscape. So that's how I see the opportunity for large sports organizations."

(25:52) Wrapping up a lot of what we've already talked about here, what's the member value in this new loyalty led world of sport?

Gabi: "I think to the earlier discussion, fans are deeply in love with their sport or their club, right? What they're looking for is personalization, recognition if they've been a lifelong fan, to being part of the community. So really, that sense of belonging, but also having some kind of an influence or access to certain kinds of content in the recognition element, the exclusive access special rewards are what I think the fans are looking for, in this case, the members.

"The flip side of the what the clubs or the federations are looking for comes from the fact that a lot of these people in sports, would love, basically, for people to support their club or their sport, but they also are very passionate about getting people to move in general, because we see a lot of data out there of the world getting more obese, younger generations being less involved in clubs and organized sport. The true enemy is not moving and not being involved in sport. Yes, you try to do your best for your federation, your club, to get people involved in there and highly competitive on the pitches, as Philip mentioned. But basically, the much, much bigger opportunity that people are deeply passionate about, I've seen, is how you get people connected to sport, and I think that's where, integral loyalty platform or ecosystems can really play a role."

(27:24) So for sporting organizations, where do they start? What challenges do you think they should aim to solve, first through loyalty programs?

Philip: "I definitely think that they should start with better recognition of their long-term fans. If they try to do anything else, then they'll get those long-term fans offside. But it's very easy to do it. One of the clubs that we're working with identified when a fan who was having their birthday was going to be at a club, going to be at a game, and they actually delivered a cake to them during half time, right? There are a lot of very small, quite low-cost things you can do to really make someone provide them with an experience they're going to remember the rest of their life.

"I think providing more opportunities to for fans to influence hard decisions would be a really great thing. Clubs generally do not like this. They don't want to be giving control over to the fans, but even giving them some say on a few different things, I think would definitely appeal to them. Then, it's all about reaching out to that hidden fan base and engaging them as best as possible, and then providing better sponsor promotion. Sponsors are paying a lot of money for the right to put their brand on the team jersey, and anything that can be done in order to better support sponsors, particularly through a loyalty program stimulating fans to go and spend with the sponsors and be able to track that is going to be hugely beneficial to the sponsor in demonstrating the value they're getting from the sponsorship, as well as for the club, in getting the sponsor to sign up for the next."

(29:14) Gabi, how should sports organizations move forward?

Gabi: "I think the old saying of go slow in order to go fast is also valid here, because you do basically get a lot more value if you think as a sports organization, "Okay, what is kind of our plan? What do we want to kind of build in there?" And then, create your big idea, create a program blueprint, validate it, then kind of launch it. I think that would be the right approach in there.

"On a practical level, the examples that Philip referred to, it’s true that sponsors, you can almost draw a parallel between them and the number one funding partner in airline loyalty programs, which are co-brand credit card offerings. But if you see how difficult it is even for that organization to communicate directly via the airline's database. Basically, you can see similarities there between the sponsor community with a sports organization on how difficult it is for them to get in touch with the fans directly, so facilitating that direct engagement in that ecosystem, whereas airlines need to almost think like becoming marketing machines for their partners, sports organizations also have that opportunity, and quite often it's not well enough thought through by a sponsor, and how can you then leverage and engage with that community kind of in there, right? So that's, that's one thing in the design.

"I think in the next step, what I would encourage sports organizations to think about and understand and learn how valuable these loyalty entities could become, just in their own right, as an additional asset for a sports organization. And there's some really good examples out there, and that's kind of what I would encourage them to do as a next step."

(30:57) Coming back to the bold claim that we made at the outset of the discussion, how can loyalty be the savior of sport?

Gabi: "I do think this from FFP to FEP idea might be the proposition here, right? So how can you go from the frequent flyer program thinking to a fan engagement program thinking in there? The opportunity is there for the first number of sports organizations to create multi billion-dollar valuations via such an entity. But the airlines also didn't get that overnight, right? They basically had to build it, the technology, the thinking, the fan base, the offering kind of in there. So, while there are learnings to be taken in there, and plenty of support from companies such as ourselves, Loylogic and Loyalty and Reward Co, it will not happen as a miracle overnight, right? This is kind of a long-term engagement, and therefore you also need to think about what you want to do. It's not like a marketing gimmick where you just kind of do something and then basically, the dollars will fly in. That's not how it works. It needs to be an integral part of the club's or the Federation's strategy. There will be early movers in there that will take the time to think about it in that way, and there will be more tactical, ad hoc type initiatives, and I think the first group will be more successful with that."

Philip: I agree. I think the reality is that a lot of sports clubs and even leagues are not as lucrative and cashed up as what fans and people might perceive them to be. Certainly, there is a small number of clubs that are doing incredibly well, but they tend to be in the minority. Most clubs are trying to get together enough revenue and most of that goes into buying new players and putting on games. Any opportunity for a club to be able to build out a sizable new revenue stream should be highly attractive to them.

"And as per Gabi's talk of the frequent flyer program or the fan engagement program using the points earn and redemption economics, there's a really great opportunity there, but it does need to be symbiotic. It's not just enough to say, great, let's monetize our highly loyal fan base. It needs to be done in a way that provides fans with desirable, motivating value, so that they're getting something out of it, and the club is also getting something out of it. And

Really, the key to that is access. That's what the fans really want. They want access to players. They want access to the games. They want access to limited edition merchandise value offers, things that are really going to get them excited about engaging with that program, and then you've got a winning, successful recipe there."

Robert Clements, Loylogic’s Lead Consultant, joined us at our Loylogic LIVE event recently to explore one of the biggest opportunities and challenges loyalty program leaders have today: the all-important transition to community driven engagement.

In his presentation, which can be viewed on demand below, Rob discussed how customer engagement has evolved over time and how brands can leverage communities to build a more personal, dynamic and connected experience with their customers. As he says, why build a program when you can build a community?

Key talking points include:

- The definition of community-driven engagement and how it has matured into a viable strategy for most customer-centric organizations.
- The six elements that brands can leverage to build a sense of community.
- Four reasons why brands should invest in community-driven engagement.
- Key steps to building a community, including identifying the right customers, integrating them into the right engagement framework, finding the right incentives, community management, and celebrating the contributions of the community.

To find out how, through embracing community driven engagements, you can build brand new, deep connections and passionate advocates for your brand, press play below.

To talk to Rob in more details about community driven engagement and how to build engagement for your loyalty program, email This email address is being protected from spambots. You need JavaScript enabled to view it..

Robert Clements, Loylogic’s Lead Consultant, joined us at our Loylogic LIVE event recently to explore one of the biggest opportunities and challenges loyalty program leaders have today: the all-important transition to community driven engagement.

In his presentation, which can be viewed on demand below, Rob discussed how customer engagement has evolved over time and how brands can leverage communities to build a more personal, dynamic and connected experience with their customers. As he says, why build a program when you can build a community?

Key talking points include:

- The definition of community-driven engagement and how it has matured into a viable strategy for most customer-centric organizations.
- The six elements that brands can leverage to build a sense of community.
- Four reasons why brands should invest in community-driven engagement.
- Key steps to building a community, including identifying the right customers, integrating them into the right engagement framework, finding the right incentives, community management, and celebrating the contributions of the community.

To find out how, through embracing community driven engagements, you can build brand new, deep connections and passionate advocates for your brand, press play below.

To talk to Rob in more details about community driven engagement and how to build engagement for your loyalty program, email This email address is being protected from spambots. You need JavaScript enabled to view it..

Continuing our review of the best sessions from our recent Loylogic LIVE event, this time we’re sharing a great conversation all about creating incremental value from an FMCG loyalty program by marketing your community.

In this session, Joël Muller from Nescafé Dolce Gusto PREMIO and Dani Schmidt from Loylogic delve into the world of FMCG loyalty programs and how incremental value can be created, using Nescafé Dolce Gusto’s supremely successful multi-market Premio Loyalty scheme as an example.

Key talking points from the session include:

- The need to partner with brands that are relevant to your target audience. This will increase the value proposition of a program and make it more relevant to members.

- Carefully select brands to partner with. The brands should be a good fit with your brand and target audience, which means understanding your program members is vitally important.

- This isn't about selling member data. You can partner with brands by inviting them into an ecosystem where they can offer their value proposition to members. Members can then decide whether or not they are interested.

- There’s an opportunity to charge brands a fee for access to your target audience. This can be done through a co-funding model where the brand pays for points that are redeemed by members.

The video from the Loylogic LIVE session can be viewed below, or head to Loylogic's YouTube channel hereto view all the session videos from Loylogic LIVE.

To discuss how Loylogic can help you build a new FMCG loyalty program or supercharge your existing one, just like we have for Nescafé Dolce Gusto, click here and we’ll be in touch.

Like this? Then don't miss our podcast featuring Joël and Dani here.

Continuing our review of the best sessions from our recent Loylogic LIVE event, this time we’re sharing a great conversation all about creating incremental value from an FMCG loyalty program by marketing your community.

In this session, Joël Muller from Nescafé Dolce Gusto PREMIO and Dani Schmidt from Loylogic delve into the world of FMCG loyalty programs and how incremental value can be created, using Nescafé Dolce Gusto’s supremely successful multi-market Premio Loyalty scheme as an example.

Key talking points from the session include:

- The need to partner with brands that are relevant to your target audience. This will increase the value proposition of a program and make it more relevant to members.

- Carefully select brands to partner with. The brands should be a good fit with your brand and target audience, which means understanding your program members is vitally important.

- This isn't about selling member data. You can partner with brands by inviting them into an ecosystem where they can offer their value proposition to members. Members can then decide whether or not they are interested.

- There’s an opportunity to charge brands a fee for access to your target audience. This can be done through a co-funding model where the brand pays for points that are redeemed by members.

The video from the Loylogic LIVE session can be viewed below, or head to Loylogic's YouTube channel hereto view all the session videos from Loylogic LIVE.

To discuss how Loylogic can help you build a new FMCG loyalty program or supercharge your existing one, just like we have for Nescafé Dolce Gusto, click here and we’ll be in touch.

Like this? Then don't miss our podcast featuring Joël and Dani here.

One of the most hotly anticipated sessions at Loylogic LIVE 2024, was the discussion that centred around the power of marketplace and how loyalty programs can leverage the Brands2Communities strategy discussed earlier in the event to incentivize engagement.

For this session, Loylogic’s Emma Shakespeare and Ahmad Oneissi delved into the strategy of using incentives to enhance consumer engagement and foster enduring loyalty. The pair used examples from Loylogic’s incentives marketplace to show how a wide-ranging reward catalog can give consumers the power of choice and boost loyalty, while optimizing incentive costs for programs.

Further key talking points from the session included the need for personalization, why data is so important to loyalty program success and the trends that are impacting global marketplace engagement, including brand relationships with communities of loyal customers, sustainability and high customer expectations.

Find out more in our video from Loylogic LIVE here:

To chat with one of the team about how Loylogic’s Brands2Communities approach can boost engagement across your loyalty program, click here.

One of the most hotly anticipated sessions at Loylogic LIVE 2024, was the discussion that centred around the power of marketplace and how loyalty programs can leverage the Brands2Communities strategy discussed earlier in the event to incentivize engagement.

For this session, Loylogic’s Emma Shakespeare and Ahmad Oneissi delved into the strategy of using incentives to enhance consumer engagement and foster enduring loyalty. The pair used examples from Loylogic’s incentives marketplace to show how a wide-ranging reward catalog can give consumers the power of choice and boost loyalty, while optimizing incentive costs for programs.

Further key talking points from the session included the need for personalization, why data is so important to loyalty program success and the trends that are impacting global marketplace engagement, including brand relationships with communities of loyal customers, sustainability and high customer expectations.

Find out more in our video from Loylogic LIVE here:

To chat with one of the team about how Loylogic’s Brands2Communities approach can boost engagement across your loyalty program, click here.

At last month’s Loylogic LIVE event, Loylogic’s CEO, Gabi Kool, opened proceedings by presenting a strategy for loyalty success called Brands2Communities.

In his presentation, Gabi stressed how traditional loyalty programs are becoming too generic, offering one-size-fits-all rewards and relying on easy technological integrations. Instead, Loylogic is working with brands to deliver a more effective approach that focuses on the unique makeup of each loyalty program's community.

Brands2Communities is all about making sure loyalty programs can be more effective by understanding the unique characteristics of their member base and partnering with brands that resonate with those communities.

During the session, which can be viewed on demand here, four key themes emerged:

1. Loyalty programs must understand community DNA

Loyalty program operators must delve deeply into the distinct characteristics of their community segments. This involves recognizing both commonalities and differences among members across various regions and demographics. For example, an Asian airline needs to distinguish between the preferences of its Platinum members in the US, China, Japan, and the Middle East. By doing so, operators can create more relevant and engaging marketing campaigns and brand partnerships.

2. Successful engagement requires segmentation strategies

To effectively understand and segment the community, loyalty leaders should start with basic demographic and behavioral data. These include but are not limited to geographical distribution, tier levels and customer value, engagement metrics, demographic insights that analyze age brackets, income levels, gender distribution, and communication channel preferences, and, of course, redemption behavior. As Gabi says, it’s important to monitor reward redemption patterns to understand member engagement.

3. Creating loyalty program value through brand partnerships

Once a detailed understanding of these segments is achieved, loyalty marketers can position themselves as valuable partners for external brands. These brands are keen to target specific audience segments that align with their own brand values and objectives. For instance, brands known for quality, innovation, customer focus, integrity, or sustainability can be matched with relevant community segments within the loyalty program.

4. Curating relevant content to build loyalty

Loyalty marketers should act as curators, akin to publishers, who tailor content to resonate with their audience. This involves mapping out and understanding the preferences and needs of each segment, categorizing them by strategic importance, and identifying complementary brands and offers. By doing so, they can enhance the member experience and strengthen brand loyalty.

To summarize, Loylogic’s Brands2Communities approach is about deeply understanding the unique DNA of each loyalty program segment and leveraging this insight to foster meaningful brand partnerships and marketing initiatives. This strategy not only enhances member engagement but also positions loyalty programs as critical players in the broader marketing ecosystem.

To chat with one of the team about how Loylogic’s Brands2Communities approach can boost engagement across your loyalty program, click here.

At last month’s Loylogic LIVE event, Loylogic’s CEO, Gabi Kool, opened proceedings by presenting a strategy for loyalty success called Brands2Communities.

In his presentation, Gabi stressed how traditional loyalty programs are becoming too generic, offering one-size-fits-all rewards and relying on easy technological integrations. Instead, Loylogic is working with brands to deliver a more effective approach that focuses on the unique makeup of each loyalty program's community.

Brands2Communities is all about making sure loyalty programs can be more effective by understanding the unique characteristics of their member base and partnering with brands that resonate with those communities.

During the session, which can be viewed on demand here, four key themes emerged:

1. Loyalty programs must understand community DNA

Loyalty program operators must delve deeply into the distinct characteristics of their community segments. This involves recognizing both commonalities and differences among members across various regions and demographics. For example, an Asian airline needs to distinguish between the preferences of its Platinum members in the US, China, Japan, and the Middle East. By doing so, operators can create more relevant and engaging marketing campaigns and brand partnerships.

2. Successful engagement requires segmentation strategies

To effectively understand and segment the community, loyalty leaders should start with basic demographic and behavioral data. These include but are not limited to geographical distribution, tier levels and customer value, engagement metrics, demographic insights that analyze age brackets, income levels, gender distribution, and communication channel preferences, and, of course, redemption behavior. As Gabi says, it’s important to monitor reward redemption patterns to understand member engagement.

3. Creating loyalty program value through brand partnerships

Once a detailed understanding of these segments is achieved, loyalty marketers can position themselves as valuable partners for external brands. These brands are keen to target specific audience segments that align with their own brand values and objectives. For instance, brands known for quality, innovation, customer focus, integrity, or sustainability can be matched with relevant community segments within the loyalty program.

4. Curating relevant content to build loyalty

Loyalty marketers should act as curators, akin to publishers, who tailor content to resonate with their audience. This involves mapping out and understanding the preferences and needs of each segment, categorizing them by strategic importance, and identifying complementary brands and offers. By doing so, they can enhance the member experience and strengthen brand loyalty.

To summarize, Loylogic’s Brands2Communities approach is about deeply understanding the unique DNA of each loyalty program segment and leveraging this insight to foster meaningful brand partnerships and marketing initiatives. This strategy not only enhances member engagement but also positions loyalty programs as critical players in the broader marketing ecosystem.

To chat with one of the team about how Loylogic’s Brands2Communities approach can boost engagement across your loyalty program, click here.

In a recent episode of the Loylogic Podcast, executives from Nescafé Dolce Gusto joined us to discuss the development and success of the global PREMIO loyalty program.

The insights shared offer valuable lessons for loyalty program managers looking to create or enhance their own programs. Below are nine key takeaways from the discussion, which can be listened to in full here:

1. Embrace an Omni-Channel Approach

One of the fundamental aspects of PREMIO's success is its true omni-channel concept. For consumer goods brands, especially those that generate a significant portion of their business through indirect retail and wholesale channels, direct access to retail shoppers is crucial. This approach not only increases brand value in a competitive market but also provides invaluable consumer insights.

2. Ensure Scalability

Scalability is a must for multinational and global brands. NDG's use of a cloud-based solution facilitated a scalable architecture, enabling quick rollouts across various markets. For instance, once a market approved its business case, the go-to-market time for PREMIO was less than three months. This rapid deployment is possible only with a scalable ecosystem involving global partners and cloud solutions.

3. Maintain Global Consistency with Local Flexibility

PREMIO is a global concept that offers a consistent user experience across all markets. However, it also incorporates a degree of local flexibility to meet specific market needs. This balance ensures that the program is globally uniform yet locally relevant, which is essential for gaining and maintaining member loyalty. Each market can adapt the reward catalog and marketing strategies to resonate with local consumers.

4. Focus on User-Friendly Experiences

A simple and user-friendly experience is critical for consumer engagement. PREMIO's system allows consumers to easily earn points by scanning codes inside beverage boxes or automatically through connected coffee machines. This simplicity encourages participation and makes the program more attractive to users.

5. Curate an Appealing Rewards Catalog

The reward catalog is a cornerstone of any loyalty program. PREMIO's catalog is carefully curated to include a mix of relevant rewards, from virtual gift cards to kitchen appliances, tailored to each market. This customization ensures that rewards are appealing and attainable, enhancing consumer satisfaction and loyalty. Moreover, offering rewards that align with the brand's DNA and consumer lifestyle, such as coffee-related items, further strengthens the program's relevance.

6. Utilize Data for Personalization and Engagement

Data collection and analysis are pivotal in driving the success of PREMIO. The program gathers extensive data on consumer behavior through QR codes and other interactions, enabling NDG to send personalized messages at the right time. This data-driven approach ensures that communications are relevant and engaging, fostering a deeper connection with consumers. Additionally, local markets can fine-tune the value proposition and marketing activations based on these insights, further enhancing the program's effectiveness.

7. Adapt to Market Conditions

NDG continuously monitors PREMIO's performance in each market, adjusting strategies as needed to ensure a positive return on investment. This adaptability is crucial for maintaining the program's effectiveness and relevance.

8. Incorporate Gamification

To engage lower-value user segments, NDG is exploring gamification elements within PREMIO, such as instant win options and smaller rewards. Gamification can make the program more engaging and fun, encouraging broader participation.

9. Seek Strategic Partnerships

Looking ahead, NDG plans to explore partnerships with other brands to enhance PREMIO's value proposition. Collaborations can offer mutual benefits, extending the reach and appeal of the loyalty program.

The insights from NDG's PREMIO loyalty program underscore the importance of an omni-channel approach, scalability, global consistency with local flexibility, user-friendly experiences, appealing rewards, and data-driven personalization. By incorporating these elements, loyalty program managers can create compelling and effective programs that drive consumer engagement and loyalty.

In a recent episode of the Loylogic Podcast, executives from Nescafé Dolce Gusto joined us to discuss the development and success of the global PREMIO loyalty program.

The insights shared offer valuable lessons for loyalty program managers looking to create or enhance their own programs. Below are nine key takeaways from the discussion, which can be listened to in full here:

1. Embrace an Omni-Channel Approach

One of the fundamental aspects of PREMIO's success is its true omni-channel concept. For consumer goods brands, especially those that generate a significant portion of their business through indirect retail and wholesale channels, direct access to retail shoppers is crucial. This approach not only increases brand value in a competitive market but also provides invaluable consumer insights.

2. Ensure Scalability

Scalability is a must for multinational and global brands. NDG's use of a cloud-based solution facilitated a scalable architecture, enabling quick rollouts across various markets. For instance, once a market approved its business case, the go-to-market time for PREMIO was less than three months. This rapid deployment is possible only with a scalable ecosystem involving global partners and cloud solutions.

3. Maintain Global Consistency with Local Flexibility

PREMIO is a global concept that offers a consistent user experience across all markets. However, it also incorporates a degree of local flexibility to meet specific market needs. This balance ensures that the program is globally uniform yet locally relevant, which is essential for gaining and maintaining member loyalty. Each market can adapt the reward catalog and marketing strategies to resonate with local consumers.

4. Focus on User-Friendly Experiences

A simple and user-friendly experience is critical for consumer engagement. PREMIO's system allows consumers to easily earn points by scanning codes inside beverage boxes or automatically through connected coffee machines. This simplicity encourages participation and makes the program more attractive to users.

5. Curate an Appealing Rewards Catalog

The reward catalog is a cornerstone of any loyalty program. PREMIO's catalog is carefully curated to include a mix of relevant rewards, from virtual gift cards to kitchen appliances, tailored to each market. This customization ensures that rewards are appealing and attainable, enhancing consumer satisfaction and loyalty. Moreover, offering rewards that align with the brand's DNA and consumer lifestyle, such as coffee-related items, further strengthens the program's relevance.

6. Utilize Data for Personalization and Engagement

Data collection and analysis are pivotal in driving the success of PREMIO. The program gathers extensive data on consumer behavior through QR codes and other interactions, enabling NDG to send personalized messages at the right time. This data-driven approach ensures that communications are relevant and engaging, fostering a deeper connection with consumers. Additionally, local markets can fine-tune the value proposition and marketing activations based on these insights, further enhancing the program's effectiveness.

7. Adapt to Market Conditions

NDG continuously monitors PREMIO's performance in each market, adjusting strategies as needed to ensure a positive return on investment. This adaptability is crucial for maintaining the program's effectiveness and relevance.

8. Incorporate Gamification

To engage lower-value user segments, NDG is exploring gamification elements within PREMIO, such as instant win options and smaller rewards. Gamification can make the program more engaging and fun, encouraging broader participation.

9. Seek Strategic Partnerships

Looking ahead, NDG plans to explore partnerships with other brands to enhance PREMIO's value proposition. Collaborations can offer mutual benefits, extending the reach and appeal of the loyalty program.

The insights from NDG's PREMIO loyalty program underscore the importance of an omni-channel approach, scalability, global consistency with local flexibility, user-friendly experiences, appealing rewards, and data-driven personalization. By incorporating these elements, loyalty program managers can create compelling and effective programs that drive consumer engagement and loyalty.

One of Loylogic’s partners, African Bank, is celebrating the success of its innovative rewards program, Audacious Rewards, which was named Best Short Term Loyalty Campaign at the International Loyalty Awards in Dubai last month.

The awards judges praised the synergy between African Bank – The People’s Bank – and the Soweto Marathon, known as ‘The People’s Race’, noting that both originate in Soweto and share a rich heritage of pioneering inclusivity. African Bank’s sponsorship was an ideal opportunity to connect with its customers, market its Audacious Rewards programme, and add value to its members.

Audacious Rewards, which is delivered in partnership with Loylogic, was also shortlisted for the Loyalty Redefined category, highlighting African Bank's success in creating a distinctive rewards experience for all of its customers. Audacious Rewards extends beyond traditional points based programmes, reflecting the bank's dedication to advancing the lives of its customers and enabling them to succeed financially.

Sbusiso Kumalo, Chief Marketing Officer at African Bank commented: "Audacious Rewards takes a bold approach, rewarding those not traditionally served by the financial mainstream. By simply banking with us, customers earn valuable points ('Rewards You Can Count On') that provide real-world benefits.

"Our customers are at the heart of everything we do. Our founders envisioned a bank that would democratise financial services, and Audacious Rewards embodies that vision by offering meaningful rewards and encouraging positive financial habits."

Whole of bank rewards

African Bank customers have the opportunity to join Audacious Rewards for free and immediately start earning points through their daily banking activities using their African Bank debit or credit card or the African Bank app. Through Audacious Rewards, customers can simply earn points for their everyday banking such as using their card, managing their debit orders or having African Bank financial solutions. Customers can enjoy spending their points on airtime, data, electricity, grocery vouchers or convert them to cash.

Since launch of the progamme in February 2023, Audacious Rewards membership has seen significant growth exceeding business targets with over 57 000 members joining in March 2024. Moreover, members of the rewards program demonstrate a significantly higher propensity to take-up other offerings from African Bank.

Notably, rewards members have generated a remarkable 67% increase in revenue over a 12-month period compared to non-rewards members. The Audacious Rewards program goes even further, incentivizing responsible financial behaviour like credit score monitoring with over 50,000 requested credit reports in March 2024 alone.

As African Bank pushes beyond traditional banking models, Audacious Rewards speaks to the Bank's commitment to progress. It's not just about banking; it's about changing and advancing lives, while creating a more inclusive financial ecosystem for all. Loylogic is delighted to be working alongside African Bank, helping to deliver an award-winning loyalty and rewards programme that is transforming lives.

Source: African Bank

One of Loylogic’s partners, African Bank, is celebrating the success of its innovative rewards program, Audacious Rewards, which was named Best Short Term Loyalty Campaign at the International Loyalty Awards in Dubai last month.

The awards judges praised the synergy between African Bank – The People’s Bank – and the Soweto Marathon, known as ‘The People’s Race’, noting that both originate in Soweto and share a rich heritage of pioneering inclusivity. African Bank’s sponsorship was an ideal opportunity to connect with its customers, market its Audacious Rewards programme, and add value to its members.

Audacious Rewards, which is delivered in partnership with Loylogic, was also shortlisted for the Loyalty Redefined category, highlighting African Bank's success in creating a distinctive rewards experience for all of its customers. Audacious Rewards extends beyond traditional points based programmes, reflecting the bank's dedication to advancing the lives of its customers and enabling them to succeed financially.

Sbusiso Kumalo, Chief Marketing Officer at African Bank commented: "Audacious Rewards takes a bold approach, rewarding those not traditionally served by the financial mainstream. By simply banking with us, customers earn valuable points ('Rewards You Can Count On') that provide real-world benefits.

"Our customers are at the heart of everything we do. Our founders envisioned a bank that would democratise financial services, and Audacious Rewards embodies that vision by offering meaningful rewards and encouraging positive financial habits."

Whole of bank rewards

African Bank customers have the opportunity to join Audacious Rewards for free and immediately start earning points through their daily banking activities using their African Bank debit or credit card or the African Bank app. Through Audacious Rewards, customers can simply earn points for their everyday banking such as using their card, managing their debit orders or having African Bank financial solutions. Customers can enjoy spending their points on airtime, data, electricity, grocery vouchers or convert them to cash.

Since launch of the progamme in February 2023, Audacious Rewards membership has seen significant growth exceeding business targets with over 57 000 members joining in March 2024. Moreover, members of the rewards program demonstrate a significantly higher propensity to take-up other offerings from African Bank.

Notably, rewards members have generated a remarkable 67% increase in revenue over a 12-month period compared to non-rewards members. The Audacious Rewards program goes even further, incentivizing responsible financial behaviour like credit score monitoring with over 50,000 requested credit reports in March 2024 alone.

As African Bank pushes beyond traditional banking models, Audacious Rewards speaks to the Bank's commitment to progress. It's not just about banking; it's about changing and advancing lives, while creating a more inclusive financial ecosystem for all. Loylogic is delighted to be working alongside African Bank, helping to deliver an award-winning loyalty and rewards programme that is transforming lives.

Source: African Bank

In the latest episode of the Loylogic Podcast, we discuss the story of PREMIO, Nescafé Dolce Gusto’s world-leading multi-market international loyalty program.

Along with Yves-Louis Pigueller, Nescafé Dolce Gusto’s Global Data and Digital Ecosystems Lead, Joël Muller, digital marketing advisor for Nescafé Dolce Gusto and Dani Schmidt, Loylogic’s Head of Growth, we hear how this world-class loyalty program, designed to build engagement and boost consumption of  products, has developed from initial idea to the global success it is today.

Topics discussed include:

- The challenges PREMIO was designed to overcome
- How PREMIO enables the brand to directly connect with consumers through personalized communication
- How the program delivers an appealing value proposition in a consistent yet locally relevant way across multiple geographies
- The data and measurement behind the program
- The reward shops driving engagement 
- Future plans for PREMIO and much, much more.

A must listen for any internatonal brand looking to scale-up a loyalty program globally, or create a new international engagement stratgey, listen here, or read the transcript below.

(1:20) A good place to start is with the story of Nescafé Dolce Gusto and PREMIO. So Yves-Louis, what's the background that led to the creation of the program?

Yves-Louis: "Nescafé Dolce Gusto is a pod coffee system, offering consumers the ability to prepare at home, all the beverages that are made in a regular coffee shop. The range includes espresso, americano, but also the latte macchiato, the cappuccino and chocolate and teas. You can even find, since a couple of years, all of Starbuck's iconic recipes in the portfolio.

"Nescafé Dolce Gusto is available now in 70 markets, mostly in retail channels for the machine, but also for the coffee pods. We also use our own DTC to sell pods and machines. The overall yearly turnover has exceeded more than 1 billion USD in the past year."

Joël: "We like to call ourselves billionaires!"

Yves-Louis: "We're already there, Joël!

"Nescafé Dolce Gusto is operated by each of our markets and the central function provides support for anything which is a common solution, process or capability. This is the case for the Nescafé Dolce Gusto digital ecosystem, which is made up of a direct to consumer, CRM, but also PREMIO, our loyalty scheme, all of which is operated above market."

(3:17) Joël, I'll bring you in here. What challenges has PREMIO been designed to solve?

Joël: "Well, like any brand sold in retail, our challenge is to have a direct engagement with our consumers. This direct engagement provides the ability to collect precious insights on our consumers, and also the ability to engage with them through our own channel in a relevant matter.

"One of the other big challenge we have is the pressure from compatible capsule solutions, and inflation on top, which has increased the need to maintain brand value perception to engage with consumers. So PREMIO, our loyalty scheme, has been designed to answer those challenges."

(4:07) PREMIO has been in play now for a number of years. So what have been the main stages of development since its launch? How has it adapted to meet those challenges and overcome the barriers to success?

Yves-Louis: "It has been a long journey, not an easy ride every day. To design, to build and also to roll out PREMIO across the world did not happen overnight. We invested upfront a firm enough time and effort to define the concept, but also to build a sustainable business case. Loyalty is not really a frequent practice in our industry, so it took time to get everyone on board and to be convinced about the concept. Then, in order to validate all of the business assumptions and to harness the concept, we worked with a pilot market over a period of two years.

"Following these two years, where we had good results, and for the past four years, we've focused on two folds. Number one was to roll out PREMIO to our top DTC markets. And now today we're covering more than 80% of our total revenue. The other fold is about fine tuning the value exchange. What is very important to find is the right balance between an appealing proposition for a consumer, but also for us to remain ROI positive. And this is where we are now."

(5:26) Dani, what role does Loylogic play in supporting this development?

Dani: "Well, as mentioned by Yves-Louis, a major focus in recent years has been on opening up new markets on various continents. And what I mean by launch is, of course, beyond the technical implementation. It's about acquiring members and driving engagement from the program registration, and the very first can onwards. This requires a lot of effort and provides a lot of learning opportunities for all involved parties, including us. Hence, our role is to support NDG in line with its strategy and focus, and while there will be additional market launches, the next one is just around the corner in May, the engagement and value for the brand will mostly come from existing markets and its millions of members. Hence our job is to evolve and support the mentioned initiatives from both the conceptual and executional perspective."

(6:20) Joël, bringing you in again here. What are the core pillars of success for the PREMIO program?

Joël: "The first pillar is the simplicity of the user experience. It is super user-friendly. So concretely, as a consumer, you just have to flash the code which is printed inside every box of Nescafé Dolce Gusto beverage, and each scan will increment your point balance. So you can redeem your points in a gift catalog. And with our latest coffee machine generation, NEO, earning points is even easier. Once you connect your machine to your Wi Fi points are automatically granted for every cup brewed. So no more QR codes to scan so it's even more user friendly.

"The second pillar for the success is the reward catalog itself. So not only we can select for each market, the relevant rewards for all type of points, but consumers can also select many types of appealing rewards like virtual gift cards, physical gifts, vouchers for our own web shop, and so on."

Yves-Louis: "I will add two further pillars. The third pillars is definitely the solution. So we went for a cloud solution that enables two benefits: the first one is easier to roll out than the other solutions that are hosted on premise, but also to get, with a quicker time to market, all the latest innovation from the cloud solution. And to conclude, the latest pillar is in the communication, which is key. One of the main success factors is the ability to be able to advertise on the back in order to reach our acquisition target."

(8:06) Taking that point to the next stage. You were quoted in a recent press release that Nescafé Dolce Gusto was able to establish a strong personalized intimacy with its customers through PREMIO. So can you elaborate on that further?

Yves-Louis: "Indeed, PREMIO is a goldmine of data points. Thanks to these small QR codes, we're able to track the consumption behavior at the consumer level. And with reach of this data, we can push to our consumers the right message at the right time. So any activities that could be scaled like the tech segmentation inside and communication concept, are now run above market. And these enable us to empower the market to be really spot on with the engagement with the consumer."

Joël: "And to be even closer to our consumers, each market can localize and fine tune the value proposition. So the cost per point the reward catalog are different per market. If you go and visit the reward shop in Korea, for example, and then you go to the French one, you will see that the catalog is adapted to the culture of the country. The marketing activation is also mainly local, each market can define how to activate the first party data collected through PREMIO."

(9:23) Okay, so it's all about engaging members in a personalized manner?

Joël: "Exactly using the data to engage with our consumers to spread the right message at the right time to the right people, which is the you know the basics of CRM."

(9:37) So Dani, it seems like a good place to bring you in here to talk more about the rewards catalogs and that personalization from a Loylogic perspective. So how does Loylogic work with PREMIO to source relevant rewards that work both internationally and locally?

Dani: "Yes, thanks for the question. We are often asked whether we can show THE Loylogic catalog. The answer always is that this just doesn't exist, because our job is to create an engaging rewards experience for the communities of our clients and all of our reward shops are curated for our clients. And in fact, we involve our clients in co-creating and providing a rewards briefing which includes potential categories or must have rewards, a wishlist of certain brands, do's and don'ts, in line with the brand and the program DNA.

"In the case of NDG, we collaborated closely with the global business unit and the pilot market, which was Spain back then in 2017/18. And we defined the categories which includes NDG rewards like vouchers that bring members back to the NDG web shop for their next coffee purchase. We defined music technology as a must have category. This includes earbuds and loudspeakers, electronical gadgets etc. We defined kitchen as a must have category because coffee is often produced and consumed in the kitchen, so we offer kitchen appliances and coffee mugs and these kind of things, as well as experiences which is a mix of international and local gift cards. Within these categories, we look for the right rewards that fit the community profile and the program economics.

"Now, you can imagine that the accrued points value in a coffee pod program is much lower compared to a frequent flyer program, and hence the price points of offered rewards need to be within members' reach. It's important that committed members are able to reward themselves within 30 to 90 days after registration, after starting engaging with the brand. And this requires reward offers at a few euro value or dollar value in this specific case. And on the other hand, we we need to ensure that the offers fit the brand DNA and positioning, which might be a stretch in some cases.

"And maybe another important topic is that, PREMIO is a global concept, but member behavior and needs vary slightly among European countries, and are quite different in markets in Latin America and Asia. And this requires a well-balanced approach to rewards that follows global brand principles, as Joël mentioned, but takes local needs into account. And this is important not only to gain the loyalty of the members in these markets, but also to maintain the commitment of all NDG markets. Within NDG we apply the Pareto rule wherever possible, whereby 80% of the catalogue is, let's say, globally defined, and the markets have a 20% of room to maneuver local needs into the equation. Hence PREMIO is therefore a uniform global concept which is nevertheless localized. I think that's a key success factor."

(12:55) Do seasonal promotions play a part in the rewards appeal too?

Dani: "Absolutely, I mean, redemption is a good thing right, as it is the ultimate proof of member engagement. And of course, to encourage such engagement over many years, it is crucial to run marketing campaigns, whether through the introduction of new rewards categories or reward items, seasonal campaigns such as Valentine's Day, or Black Friday, or run prize draws remember can win the  latest iPhones or an annual supply of NDG coffee capsules. So, we closely collaborate with the markets to provide an exciting marketing calendar in line with the local Nescafé Dolce Gusto marketing plan, you know, throughout the year."

(13:38) Okay, it's clear listening to you that data and analytics are important to the success of PREMIO and you seem to have a really clear picture of what's going on with the program across the numerous markets. So one question I would like to ask is, what criteria do you use when selecting which markets to roll PREMIO out to? Or indeed, stop? Joël, I'll let you answer that one.

Joël: "So we do indeed define two main sets of criteria to set up PREMIO but also to stop PREMIO. When setting up PREMIO in the market we take a fact-based approach by running a business case considering the consumer base by size, the cost to set up and operate the program and the rewards price range.

"Once we're live, we monitor on a monthly basis, the success of PREMIO, looking at the consumer base evolution, acquisition and churn rates. We also look at consumer reviews or we run surveys. When KPIs are not met, all mitigation plans are exhausted to sustain a positive return on investment, then we make the decision to stop PREMIO in the market. This happened. Thankfully, not so often. But we are able to monitor it in an accurate way and we can decide to stop it if necessary."

(14:58) What role does Loylogic play in supporting the data gathering and measurement?

Dani: "Loylogic's scope is related to the rewards experience. And we do complement the picture with redemption related data primarily? Such data contains typical ecommerce metrics such as how many members come to our reward store? How many use their points by placing orders? What's the average order value? What are the top performing rewards and so on? Markets can access reporting dashboards individually 24/7. And the data is also uploaded on a monthly basis in the NDG BI, which allows every stakeholder to have a complete picture of the metrics related to premium."

(15:40) Looking to the future, how do you see PREMIO developing further, given you've got all this data available to you? Yves-Louis, let's start with you.

Yves-Louis: "So we're working on three main streams and I will cover the first two. Number one, we want to complete the footprint, we still have a couple of big markets to launch as well as tackling the non DTC market. So this is really the number one challenge.

"The number two challenge or looking forward is to be able to target the low value user segment. Back to the famous equation of how to have something appealing, but ROI positive. So we're working on extending the reward catalog with smaller gifts like a retail coupon, or raffle ticket donation. The aim is also to bring more gamification into the program for the specific segment by allowing consumers to select instant win versus point collection."

Joël: "The last stream is more longer term, which is to search for partnerships with the help of Loylogic to work with other brands. This is also an option for us together where we are stronger. So this is something also that we're looking at more long term."

(17:00) So Dani, what are the key takeaways you can share from the success of PREMIO that other loyalty program managers should consider when looking at a global rewards program?

Dani: "I have four things in mind, which I would like to share.

"First of all, PREMIO is a true omni-channel concept. And this is very essential for consumer goods brands who generate 80% or more of its business via indirect retail and wholesale channels, which is probably the case in most instances. So direct access to retail shoppers is where the incremental value lies, and what really empowers the brand in a competitive environment.

"Secondly, scalability is a must for multinational and global brands. The scalable architecture as also mentioned, by Yves-Louis, via cloud solutions, and involving global partners, are the key elements here. Just to give you one interesting piece of information...in the case of PREMIO, the go to market is less than three months after a market has signed or approved its business case the green light is given to the involved parties. Less than three months, which is only possible due to, you know, a scalable ecosystem.

"Third, PREMIO is a truly global concept, which can be introduced to every NDG market. And there is still some white spots out there. But not only introducing this to these markets, but also with a very consistent user experience across the globe. The programs, of course, have local a local flavor, but it's Nescafé Dolce Gusto PREMIO across the globe.

"And finally, although being a global concept, it is crucial to ensure a certain degree of local flexibility, for example, with regards to offered rewards. A global rollout must always be supported by the markets, because they also finance these initiatives."

In the latest episode of the Loylogic Podcast, we discuss the story of PREMIO, Nescafé Dolce Gusto’s world-leading multi-market international loyalty program.

Along with Yves-Louis Pigueller, Nescafé Dolce Gusto’s Global Data and Digital Ecosystems Lead, Joël Muller, digital marketing advisor for Nescafé Dolce Gusto and Dani Schmidt, Loylogic’s Head of Growth, we hear how this world-class loyalty program, designed to build engagement and boost consumption of  products, has developed from initial idea to the global success it is today.

Topics discussed include:

- The challenges PREMIO was designed to overcome
- How PREMIO enables the brand to directly connect with consumers through personalized communication
- How the program delivers an appealing value proposition in a consistent yet locally relevant way across multiple geographies
- The data and measurement behind the program
- The reward shops driving engagement 
- Future plans for PREMIO and much, much more.

A must listen for any internatonal brand looking to scale-up a loyalty program globally, or create a new international engagement stratgey, listen here, or read the transcript below.

(1:20) A good place to start is with the story of Nescafé Dolce Gusto and PREMIO. So Yves-Louis, what's the background that led to the creation of the program?

Yves-Louis: "Nescafé Dolce Gusto is a pod coffee system, offering consumers the ability to prepare at home, all the beverages that are made in a regular coffee shop. The range includes espresso, americano, but also the latte macchiato, the cappuccino and chocolate and teas. You can even find, since a couple of years, all of Starbuck's iconic recipes in the portfolio.

"Nescafé Dolce Gusto is available now in 70 markets, mostly in retail channels for the machine, but also for the coffee pods. We also use our own DTC to sell pods and machines. The overall yearly turnover has exceeded more than 1 billion USD in the past year."

Joël: "We like to call ourselves billionaires!"

Yves-Louis: "We're already there, Joël!

"Nescafé Dolce Gusto is operated by each of our markets and the central function provides support for anything which is a common solution, process or capability. This is the case for the Nescafé Dolce Gusto digital ecosystem, which is made up of a direct to consumer, CRM, but also PREMIO, our loyalty scheme, all of which is operated above market."

(3:17) Joël, I'll bring you in here. What challenges has PREMIO been designed to solve?

Joël: "Well, like any brand sold in retail, our challenge is to have a direct engagement with our consumers. This direct engagement provides the ability to collect precious insights on our consumers, and also the ability to engage with them through our own channel in a relevant matter.

"One of the other big challenge we have is the pressure from compatible capsule solutions, and inflation on top, which has increased the need to maintain brand value perception to engage with consumers. So PREMIO, our loyalty scheme, has been designed to answer those challenges."

(4:07) PREMIO has been in play now for a number of years. So what have been the main stages of development since its launch? How has it adapted to meet those challenges and overcome the barriers to success?

Yves-Louis: "It has been a long journey, not an easy ride every day. To design, to build and also to roll out PREMIO across the world did not happen overnight. We invested upfront a firm enough time and effort to define the concept, but also to build a sustainable business case. Loyalty is not really a frequent practice in our industry, so it took time to get everyone on board and to be convinced about the concept. Then, in order to validate all of the business assumptions and to harness the concept, we worked with a pilot market over a period of two years.

"Following these two years, where we had good results, and for the past four years, we've focused on two folds. Number one was to roll out PREMIO to our top DTC markets. And now today we're covering more than 80% of our total revenue. The other fold is about fine tuning the value exchange. What is very important to find is the right balance between an appealing proposition for a consumer, but also for us to remain ROI positive. And this is where we are now."

(5:26) Dani, what role does Loylogic play in supporting this development?

Dani: "Well, as mentioned by Yves-Louis, a major focus in recent years has been on opening up new markets on various continents. And what I mean by launch is, of course, beyond the technical implementation. It's about acquiring members and driving engagement from the program registration, and the very first can onwards. This requires a lot of effort and provides a lot of learning opportunities for all involved parties, including us. Hence, our role is to support NDG in line with its strategy and focus, and while there will be additional market launches, the next one is just around the corner in May, the engagement and value for the brand will mostly come from existing markets and its millions of members. Hence our job is to evolve and support the mentioned initiatives from both the conceptual and executional perspective."

(6:20) Joël, bringing you in again here. What are the core pillars of success for the PREMIO program?

Joël: "The first pillar is the simplicity of the user experience. It is super user-friendly. So concretely, as a consumer, you just have to flash the code which is printed inside every box of Nescafé Dolce Gusto beverage, and each scan will increment your point balance. So you can redeem your points in a gift catalog. And with our latest coffee machine generation, NEO, earning points is even easier. Once you connect your machine to your Wi Fi points are automatically granted for every cup brewed. So no more QR codes to scan so it's even more user friendly.

"The second pillar for the success is the reward catalog itself. So not only we can select for each market, the relevant rewards for all type of points, but consumers can also select many types of appealing rewards like virtual gift cards, physical gifts, vouchers for our own web shop, and so on."

Yves-Louis: "I will add two further pillars. The third pillars is definitely the solution. So we went for a cloud solution that enables two benefits: the first one is easier to roll out than the other solutions that are hosted on premise, but also to get, with a quicker time to market, all the latest innovation from the cloud solution. And to conclude, the latest pillar is in the communication, which is key. One of the main success factors is the ability to be able to advertise on the back in order to reach our acquisition target."

(8:06) Taking that point to the next stage. You were quoted in a recent press release that Nescafé Dolce Gusto was able to establish a strong personalized intimacy with its customers through PREMIO. So can you elaborate on that further?

Yves-Louis: "Indeed, PREMIO is a goldmine of data points. Thanks to these small QR codes, we're able to track the consumption behavior at the consumer level. And with reach of this data, we can push to our consumers the right message at the right time. So any activities that could be scaled like the tech segmentation inside and communication concept, are now run above market. And these enable us to empower the market to be really spot on with the engagement with the consumer."

Joël: "And to be even closer to our consumers, each market can localize and fine tune the value proposition. So the cost per point the reward catalog are different per market. If you go and visit the reward shop in Korea, for example, and then you go to the French one, you will see that the catalog is adapted to the culture of the country. The marketing activation is also mainly local, each market can define how to activate the first party data collected through PREMIO."

(9:23) Okay, so it's all about engaging members in a personalized manner?

Joël: "Exactly using the data to engage with our consumers to spread the right message at the right time to the right people, which is the you know the basics of CRM."

(9:37) So Dani, it seems like a good place to bring you in here to talk more about the rewards catalogs and that personalization from a Loylogic perspective. So how does Loylogic work with PREMIO to source relevant rewards that work both internationally and locally?

Dani: "Yes, thanks for the question. We are often asked whether we can show THE Loylogic catalog. The answer always is that this just doesn't exist, because our job is to create an engaging rewards experience for the communities of our clients and all of our reward shops are curated for our clients. And in fact, we involve our clients in co-creating and providing a rewards briefing which includes potential categories or must have rewards, a wishlist of certain brands, do's and don'ts, in line with the brand and the program DNA.

"In the case of NDG, we collaborated closely with the global business unit and the pilot market, which was Spain back then in 2017/18. And we defined the categories which includes NDG rewards like vouchers that bring members back to the NDG web shop for their next coffee purchase. We defined music technology as a must have category. This includes earbuds and loudspeakers, electronical gadgets etc. We defined kitchen as a must have category because coffee is often produced and consumed in the kitchen, so we offer kitchen appliances and coffee mugs and these kind of things, as well as experiences which is a mix of international and local gift cards. Within these categories, we look for the right rewards that fit the community profile and the program economics.

"Now, you can imagine that the accrued points value in a coffee pod program is much lower compared to a frequent flyer program, and hence the price points of offered rewards need to be within members' reach. It's important that committed members are able to reward themselves within 30 to 90 days after registration, after starting engaging with the brand. And this requires reward offers at a few euro value or dollar value in this specific case. And on the other hand, we we need to ensure that the offers fit the brand DNA and positioning, which might be a stretch in some cases.

"And maybe another important topic is that, PREMIO is a global concept, but member behavior and needs vary slightly among European countries, and are quite different in markets in Latin America and Asia. And this requires a well-balanced approach to rewards that follows global brand principles, as Joël mentioned, but takes local needs into account. And this is important not only to gain the loyalty of the members in these markets, but also to maintain the commitment of all NDG markets. Within NDG we apply the Pareto rule wherever possible, whereby 80% of the catalogue is, let's say, globally defined, and the markets have a 20% of room to maneuver local needs into the equation. Hence PREMIO is therefore a uniform global concept which is nevertheless localized. I think that's a key success factor."

(12:55) Do seasonal promotions play a part in the rewards appeal too?

Dani: "Absolutely, I mean, redemption is a good thing right, as it is the ultimate proof of member engagement. And of course, to encourage such engagement over many years, it is crucial to run marketing campaigns, whether through the introduction of new rewards categories or reward items, seasonal campaigns such as Valentine's Day, or Black Friday, or run prize draws remember can win the  latest iPhones or an annual supply of NDG coffee capsules. So, we closely collaborate with the markets to provide an exciting marketing calendar in line with the local Nescafé Dolce Gusto marketing plan, you know, throughout the year."

(13:38) Okay, it's clear listening to you that data and analytics are important to the success of PREMIO and you seem to have a really clear picture of what's going on with the program across the numerous markets. So one question I would like to ask is, what criteria do you use when selecting which markets to roll PREMIO out to? Or indeed, stop? Joël, I'll let you answer that one.

Joël: "So we do indeed define two main sets of criteria to set up PREMIO but also to stop PREMIO. When setting up PREMIO in the market we take a fact-based approach by running a business case considering the consumer base by size, the cost to set up and operate the program and the rewards price range.

"Once we're live, we monitor on a monthly basis, the success of PREMIO, looking at the consumer base evolution, acquisition and churn rates. We also look at consumer reviews or we run surveys. When KPIs are not met, all mitigation plans are exhausted to sustain a positive return on investment, then we make the decision to stop PREMIO in the market. This happened. Thankfully, not so often. But we are able to monitor it in an accurate way and we can decide to stop it if necessary."

(14:58) What role does Loylogic play in supporting the data gathering and measurement?

Dani: "Loylogic's scope is related to the rewards experience. And we do complement the picture with redemption related data primarily? Such data contains typical ecommerce metrics such as how many members come to our reward store? How many use their points by placing orders? What's the average order value? What are the top performing rewards and so on? Markets can access reporting dashboards individually 24/7. And the data is also uploaded on a monthly basis in the NDG BI, which allows every stakeholder to have a complete picture of the metrics related to premium."

(15:40) Looking to the future, how do you see PREMIO developing further, given you've got all this data available to you? Yves-Louis, let's start with you.

Yves-Louis: "So we're working on three main streams and I will cover the first two. Number one, we want to complete the footprint, we still have a couple of big markets to launch as well as tackling the non DTC market. So this is really the number one challenge.

"The number two challenge or looking forward is to be able to target the low value user segment. Back to the famous equation of how to have something appealing, but ROI positive. So we're working on extending the reward catalog with smaller gifts like a retail coupon, or raffle ticket donation. The aim is also to bring more gamification into the program for the specific segment by allowing consumers to select instant win versus point collection."

Joël: "The last stream is more longer term, which is to search for partnerships with the help of Loylogic to work with other brands. This is also an option for us together where we are stronger. So this is something also that we're looking at more long term."

(17:00) So Dani, what are the key takeaways you can share from the success of PREMIO that other loyalty program managers should consider when looking at a global rewards program?

Dani: "I have four things in mind, which I would like to share.

"First of all, PREMIO is a true omni-channel concept. And this is very essential for consumer goods brands who generate 80% or more of its business via indirect retail and wholesale channels, which is probably the case in most instances. So direct access to retail shoppers is where the incremental value lies, and what really empowers the brand in a competitive environment.

"Secondly, scalability is a must for multinational and global brands. The scalable architecture as also mentioned, by Yves-Louis, via cloud solutions, and involving global partners, are the key elements here. Just to give you one interesting piece of information...in the case of PREMIO, the go to market is less than three months after a market has signed or approved its business case the green light is given to the involved parties. Less than three months, which is only possible due to, you know, a scalable ecosystem.

"Third, PREMIO is a truly global concept, which can be introduced to every NDG market. And there is still some white spots out there. But not only introducing this to these markets, but also with a very consistent user experience across the globe. The programs, of course, have local a local flavor, but it's Nescafé Dolce Gusto PREMIO across the globe.

"And finally, although being a global concept, it is crucial to ensure a certain degree of local flexibility, for example, with regards to offered rewards. A global rollout must always be supported by the markets, because they also finance these initiatives."

We look forward to welcoming you to Loylogic LIVE. Read on to find out more about our brand new digital event.

What is Loylogic LIVE?

Loylogic LIVE is a virtual event that showcases how Loylogic is enabling organizations to deliver successful loyalty and rewards programs. Through a series of short sessions, we’ll discuss how the latest loyalty innovations and Loylogic’s Brands2Communities strategy are enabling global brands to engage with customers and build the new era of loyalty. You can register for the event here: Loylogic LIVE Registration.

When is Loylogic LIVE?

Loylogic LIVE takes place online on 8 May, 2024. The first session commences at 10.30am (UTC+2).

What sessions will be taking place at Loylogic LIVE?

We have a mix of sessions covering the current trends in loyalty, as well as drilling down into the specific challenges facing specific sectors. The full programme is as follows (please note all timings are Central European Summer Time):

10:30 – 10:55: Brands2Communities: The New Era of Loyalty
In this opening keynote, we take a look at the macro trends influencing customer loyalty and delve into how Loylogic's Brands2Communities approach is delivering a new era for rewards-based engagement.
Speaker: Gabi Kool, CEO, Loylogic

11:00 – 11:20: Transitioning to Community-Driven Engagement
Join us as we explore the shift from traditional loyalty models to dynamic, community-centric engagement strategies is transforming how brands connect with customers.
Speaker: Robert Clements, Loylogic

11:30 – 11:50: Creating incremental value by marketing your community
In this session we delve into the world of FMCG loyalty programs and how to drive incremental value, using Nescafé Dolce Gusto’s supremely successful multi-market Premio Loyalty scheme as an example.
Speaker: Joël Muller, Nescafé Dolce Gusto PREMIO & Dani Schmidt, Loylogic

12:00 – 12:20: The Best Bank Loyalty: Right Rewards, Right Time, Right Communities
Great loyalty engagement is underpinned by offering relevant, motivational rewards, connecting the right brands to the right communities at the right time. In this session, Dr. Nceba Hene, Head of Loyalty and Rewards at African Bank, and Loylogic’s Badr Zerradi, discuss why rewards redemption is so important to bank loyalty programme success, sharing examples from the highly successful Audacious Rewards initiative.
Speakers: Dr. Nceba Hene, African Bank & Badr Zerradi, Loylogic

12:30 – 12:50: Ultimate: Motivating employees and partners through inspirational brands
This session will introduce Loylogic's solution to employee and partner motivation and explore how we use the inspirational characteristics of brands to motivate members.
Speaker: Samir Skif, Loylogic

13:00 – 13:20: The Power of Marketplace: Leveraging Brands2Communities to Incentivize Engagement
Join us as we delve into the strategy of using incentives to enhance consumer engagement and foster enduring loyalty and take a look at how Loylogic’s world-leading incentives marketplace brings consumers the power of choice, while optimizing incentive costs for programs.
Speaker: Ahmad Oneissi & Emma Shakespeare, Loylogic

How do I register?

Registering for Loylogic LIVE is easy. Simply click on this link to be taken to the registration form. Once registered you’ll receive a unique login that can be used on the day.

What if I can’t make it on the day?

If you can’t make it on 8 May, register using this link and we will share recordings of the sessions that can be viewed at your convenience.

Can I just join specific sessions?

Definitely! Register using the link above and on the day of Loylogic LIVE you will be able to join just the sessions relevant to you.

We look forward to welcoming you to Loylogic LIVE. Read on to find out more about our brand new online event.

What is Loylogic LIVE?

Loylogic LIVE is a virtual event that showcases how Loylogic is enabling organizations to deliver successful loyalty and rewards programs. Through a series of short sessions, we’ll discuss how the latest loyalty innovations and Loylogic’s Brands2Communities strategy are enabling global brands to engage with customers and build the new era of loyalty. You can register for the event here: Loylogic LIVE Registration.

When is Loylogic LIVE?

Loylogic LIVE takes place online on 8 May, 2024. The first session commences at 10.30am (UTC+2).

What sessions will be taking place at Loylogic LIVE?

We have a mix of sessions covering the current trends in loyalty, as well as drilling down into the specific challenges facing specific sectors. The full programme is as follows (please note all timings are Central European Summer Time):

10:30 – 10:55: Brands2Communities: The New Era of Loyalty
In this opening keynote, we take a look at the macro trends influencing customer loyalty and delve into how Loylogic's Brands2Communities approach is delivering a new era for rewards-based engagement.
Speaker: Gabi Kool, CEO, Loylogic

11:00 – 11:20: Transitioning to Community-Driven Engagement
Join us as we explore the shift from traditional loyalty models to dynamic, community-centric engagement strategies is transforming how brands connect with customers.
Speaker: Robert Clements, Loylogic

11:30 – 11:50: Creating incremental value by marketing your community
In this session we delve into the world of FMCG loyalty programs and how to drive incremental value, using Nescafé Dolce Gusto’s supremely successful multi-market Premio Loyalty scheme as an example.
Speaker: Joël Muller, Nescafé Dolce Gusto PREMIO & Dani Schmidt, Loylogic

12:00 – 12:20: The Best Bank Loyalty: Right Rewards, Right Time, Right Communities
Great loyalty engagement is underpinned by offering relevant, motivational rewards, connecting the right brands to the right communities at the right time. In this session, Dr. Nceba Hene, Head of Loyalty and Rewards at African Bank, and Loylogic’s Badr Zerradi, discuss why rewards redemption is so important to bank loyalty programme success, sharing examples from the highly successful Audacious Rewards initiative.
Speakers: Dr. Nceba Hene, African Bank & Badr Zerradi, Loylogic

12:30 – 12:50: Ultimate: Motivating employees and partners through inspirational brands
This session will introduce Loylogic's solution to employee and partner motivation and explore how we use the inspirational characteristics of brands to motivate members.
Speaker: Samir Skif, Loylogic

13:00 – 13:20: The Power of Marketplace: Leveraging Brands2Communities to Incentivize Engagement
Join us as we delve into the strategy of using incentives to enhance consumer engagement and foster enduring loyalty and take a look at how Loylogic’s world-leading incentives marketplace brings consumers the power of choice, while optimizing incentive costs for programs.
Speaker: Ahmad Oneissi & Emma Shakespeare, Loylogic

13:20 – 13:30: Key takeaways
Join Loylogic's CEO, Gabi Kool, as he wraps up Loylogic LIVE with his key takeaways from the day's sessions.
Speaker: Gabi Kool, Loylogic

How do I register?

Registering for Loylogic LIVE is easy. Simply click on this link to be taken to the registration form. Once registered you’ll receive a unique login that can be used on the day.

What if I can’t make it on the day?

If you can’t make it on 8 May, register using this link and we will share recordings of the sessions that can be viewed at your convenience.

Can I just join specific sessions?

Definitely! Register using the link above and on the day of Loylogic LIVE you will be able to join just the sessions relevant to you.

In this episode of the Loylogic Podcast, we welcome Vicky Elliot, an independent consultant specializing in travel and hospitality loyalty, to talk about the trends, challenges and strategies for success that all hotel loyalty program leaders need to know.

Together, we discuss:

The evolution of loyalty programs in the hotel industry:

- How loyalty programs have evolved
- The catalysts behind developments
- How hotels are measuring success from their loyalty programs

The challenges and barriers to success:

- Challenges hotels face today in recognizing and rewarding members of their loyalty programs?
- The discussion around sustainability across hotel and the wider travel sector
- Solutions that exist to overcome the challenges and roadblocks

The future of loyalty in the hospitality industry:

- The new trends that Vicky sees being tried and tested in the hospitality loyalty space
- How loyalty programs can leverage data analytics and customer insights to offer more personalized experiences and rewards
- How program leaders should go about selecting which one to partner with?
- Advice to a hotel company either wanting to launch a loyalty program or review their existing loyalty proposition

A must listen for anybody involved with travel and hospitality loyalty, listen here, or read the transcript below.

(1:30) You've been a leader in loyalty marketing and CRM in the hospitality sector for many years now. So how has the hotel loyalty program evolved during this time?

"Yes, probably more years than I care to remember! The hotel loyalty space, if I'm not mistaken, is about 30 years old now. I think Marriott or Holiday Inn were the forerunners of hospitality loyalty and it was very much the collect points for free nights type of program. And then obviously, a lot of the bigger chains jumped on board in the following years and hotel programs became very much a conduit into the airline programs, which were already more established and already much bigger. Through partnerships they fed into the airline travel programs. That then led on to partnerships with financial institutions, especially the likes of American Express.

"Today, the hotel programs are very much essential programs in their own right. Marriott now has nearly 200 million members, over 30 brands, nearly 9,000 hotels worldwide. Hilton is not far behind with 173 million members. And then now you've got alliances such as the Global Hotel Alliance, which is bringing together some of those smaller to medium sized hotel chains. I think they have now 40 brands and over 800 Hotels within their alliance and all joined through a loyalty program. So, co-brand credit cards, partner networks, sponsorship of major events, celebrity endorsement...these aren't just linked to the big retail brands anymore, you see a lot of loyalty programs out there sponsoring, whether it's global football tournaments, tennis, cricket, motor racing, etc.

"Loyalty programs within the hotel industry and moving more away from the points for free nights model, to really becoming a self service experience for the member throughout their hotel stay, whether that's giving them access to things like online checking, keyless door entry, preferred room choice, and even room settings before they arrive, as well as more the transactional benefits. Still collecting points but being able to redeem them for a plethora of other rewards, whether it's in hotel or through partnerships that they have."

(3:56) What has been the catalyst for this change? Why are these big hotel chains looking at the wider experience rather than just points for nights?

"I think a lot has been brought about through industry consolidation. Really the only competitive advantage now is the experience that you can give to your members and to your guests. It's very easy for competitor hotel chains to copy awarding points or a particular in hotels say benefit. But what resonates with the customer, what resonates with the guests and therefore your key differentiator is how you make them feel when they're staying with you. So really through the customer demand and customer expectation and moving away from that transactional to the emotional loyalty. Guests expect to be known. They expected to be recognized. They think they've told you their preferences once, so they don't want to have to repeat themselves. Loyalty is about bringing in this much more one-on-one emotional loyalty that has been the catalyst."

(5:14) That's a nice little segue into the next question, which is how are hotels measuring success from a loyalty program? How do they know that they're delivering the best experience?

"I think obviously they still have the usual loyalty measures of healthy program redemption rates, breakage, number of active members. In the hotel industry, we've obviously focused a lot on the impact on business. So, retention rates, customer lifetime value, and then looking at the average spend of a member versus a non-member during their stay throughout the year. And looking at that recency, frequency, monetary value. We're now also pulling in customer satisfaction scores, customer effort scores, net promoter scores, and how your relationship with that customer influences other people to come and stay at your property as well."

(6:06) There's a lot to think about for these hotel chains now, in terms of their loyalty program. So therefore, there must be lots of challenges and barriers to success. From your perspective, what challenges are hotels facing today in recognizing and rewarding members of their programs?

"I think there are two big challenges. I think one is making sure that colleagues and employees in the hotel chains on the ground are familiar with, educated with, and involved with the hotel loyalty program, so that they don't see it as just something they've got to do, but understand the reasoning, why they have the program, and what those benefits are and what the members' expectations are, and being able to deliver that consistently at a hotel level. There's quite a lot of staff turnover, whether it's front desk, in restaurants, etc. So, it's really that employee engagement, I think that's going to become increasingly important. And looking at employee loyalty is almost as important as looking at the customer loyalty as well.

"And then secondly, data. There's a lot of siloed, disconnected systems within the hotel industry, whether it's from the reservation platforms to their point-of-sale terminals and restaurants, Spa and fitness, to the property management systems, table reservation systems, their CRM, their revenue management... There are so many different locations where data is stored, not necessarily in a consistent manner. They've all evolved over time, but the data hasn't really been brought together. So, I think a major challenge is being able to pull that data together in a manner that's GDPR compliant, that captures member consent and preferences, but then is also being processed in a way that empowers and enables hotels to be able to reward and recognize their guests on an ongoing basis.

"So, I think those two areas are the main challenges for hotel chains today, whether they're small, individual properties, or the I imagine those challenges are even bigger for some of the mega chains out there."

(8:24) So how do we overcome those challenges? What solutions are out there to help loyalty programs?

"I think there's a lot more now in the employee loyalty space, whether that's connecting with learning management systems. And often this is something overlooked from a loyalty program perspective, there's a lot to focus on delivering service in the hotels, but maybe not so much on educating around the loyalty program, etc. I know the big chains definitely have that, but some of those smaller chains, not necessarily so. Then, hotels need to have a reward mechanism that incentivizes colleagues to engage with the hotel loyalty programs as well.

"From a data perspective, there is a lot of middleware out there. There are quite a few companies that specialize now in taking your data and delivering it to your front of house employees. So, they're able to take action on it as well. So, it's out there. It's just being able to choose which one's the right fit for you and fits the gaps within your customer journey that are currently maybe pain points are somewhat disconnected."

(9:34) On that, what questions should a loyalty program leader manager be asking to ensure they get the right software?

"I think they start with their customer journey. At the end of the day, technology is an enabler, it shouldn't be the solution. So, looking at your customer journey from the time that they even start to think about booking a holiday, when they haven't necessarily chosen your chain, all the way through to once they've left and the reminiscing and that whole customer cycle. It's looking at how you interact, where you interact, what platforms you've got, what data you have. And then again, going back to that customer effort measurement, what effort is it for a customer to engage with you across all of those different touch points within the customer journey? And then from that, you're able to identify where your gaps are, where your pain points are for your customers. And from there, you can look at what technology solutions will help you bring that together, whether that's complementing what you already have within your tech stack, or whether it's replacing what you have out there."

(10:38) Before we move on to discuss the future of loyalty, going off on a bit of a tangent here, but I would quickly like to talk about sustainability, which is a topic that I know is close to your heart, and is a topic that that's impacting the wider travel sector at the moment. Is sustainability becoming an important element of hotel loyalty programs? And if so, how are hotels incorporating these aspects to engage customers?

"Yes, it is becoming an increasingly important element into drivers of consideration for a traveler when they're booking their hotel stays, their airline, whether it's with a travel agent, or directly, it's becoming much more of a consideration as to which hotel brand they're going to choose. How is that being incorporated into loyalty programs? To be honest, the answer is not very well.

"The hotel industry overall, is taking amazing steps in addressing sustainability measures, protecting natural environment, promoting societal wellbeing, whether that's through eco-friendly products, waste minimization solutions, energy saving technologies, environmentally-friendly guest services, bike rental, those little notes that you get on your beds to remind you not to use the towels, or change the towels every day, locally sourced food products, even being able to track the food through the process within the hotel to minimize waste there. And then also supporting local communities through food banks or charitable initiatives. And then on the social responsibility side through the hiring and ensuring equality within the hotel teams.

"The World Travel and Tourism Council has come up with 12 basic criteria for the hotel industry based on three core pillars of efficiency, planet, and people. Hotels are starting to share those on social channels. They're starting, they're obtaining certification from distribution channels, but it hasn't really filtered down as much into loyalty programs yet. You see some brands incorporating the ability to donate points to charitable organizations, or to participate in experiences, it could be things from tree planting, or whatever. But there's nothing that really matches what they're doing at a higher level at a more substantial level. And this could ultimately be rewarding guests for eco-friendly choices during their stay.

"I think you know, green loyalty programs do attract the environmentally conscious traveler who seek to have the hotel experiences align with their values that they have. But the ability to do this hasn't really evolved as much. But these initiatives and once a hotel company understands how they can track trace and reward what a guest will do on property, then they could definitely foster that emotional connection with guests and encourage them to return and recommend the hotel to others as well."

(13:47) That sounds like an important part of a future loyalty strategy for hotels there, which moves us very nicely on to the future of loyalty in the hospitality industry. With that in mind, what are some of the new trends you see being tried and tested in the space?

"There's a lot around AI at the moment. Whether that's from chat bots helping you book your hotel stay online, you maybe get stuck with something and the Chatbot pops in and says how can I help you, then connects you to a real live person if the if the bot can't answer, to answering simple questions, being able to connect through chats to order your room service or a cocktail on the beach, there's a lot of AI driving efficiencies and improving the guest experience on property or when they're booking. I think these will only continue to improve.

"From a loyalty program perspective, there's huge potential in card linking products when you're talking about having your loyalty program not only during your hotel stay but meaning something to you or being incorporated into your life when you're back at home, whether that's being able to redeem points for merchandise that you use every day for gifting, being able to collect points whilst you're shopping or in your day to day activities. So being able to connect that value proposition to outside of the of your hotel stay."

(15:17) Does that mean hotels need to work with loyalty platforms that have a really wide rewards marketplace and can drive to connect brands to communities? Is that where the future is do you think?

"Definitely, that's a component of it? Absolutely. So Being able to reward members outside of their own ecosystem, and employees as well, I think such platforms or play will be very important to employee loyalty and driving that employee space who don't necessarily want to or have the means to go and dine or stay at the hotel properties, but want to be able to choose some sort of reward that's relevant to them. So yes, definitely.

"I also think that just understanding how and why a customer wants to engage with you, or engage with other travel partners, and who those travel partners are through the enhanced data analytics and customer insights that will help drive those personalized experiences, that emotional connection. You want members to think, okay, these people really get me they really know me, they're going to make my travel experience seamless, so I can get make the most out of my time, whilst I'm in my destination."

(16:26) We've touched on this already, but there's a huge choice of platform providers and technology out there vying for business. Is there anything else you would like to add on that topic in terms of selecting which one to partner with?

"As I said before, I think it's very much linked to the customer journey and where your gaps are. But then also, the hospitality industry is quite unique in the way its tech stacks are structured, and how everybody interacts very differently with the technology. So having a partner that potentially has that experience already with the hospitality industry, or at least within the travel industry and understands what you're trying to achieve, and is aligned with you and understand your vision, then I think that's important, too."

(17:14) Bringing all of the different strands we've talked about together, what would your advice be to a hotel company who either wants to launch a loyalty program or who wants to review their existing proposition?

"I think there's a lot of hotel companies, not only hotel companies, but a lot of businesses that go out there today saying, "I need to get my I need to understand my customers better I need to get customer data, I need to have a loyalty program to do that". Okay, there's a couple of objectives in there, but it's maybe not the best way to start. I think understanding what type of behavior you're looking to drive. What loyalty actually means to you as a business, you know, is it repeat stays, is it increased wallet value? Is it multiple stays across multiple destinations? Is it advocacy? It could be a combination of all of these things, but very clearly setting out your objectives that are very much aligned with your vision of your company and what your company stands for and what its purpose is, remains vital. Start from the top work your way down.

"And as I said before, the technology part is really an enabler to all of that, rather than the solution. So, work on your strategy, work on your objectives. And from there, look at what your customers want from you what they're expecting from you speak to your customers, understand what they value, what drives consideration when they're going to book with you, how they like to be treated on property, and start there, rather than starting with a solution of I need a loyalty program and I need to tech solution to do that.

"I think spending more time on that whole discovery and design phase is really important, rather than jumping straight to delivery."

In this episode of the Loylogic Podcast, we welcome Vicky Elliot, an independent consultant specializing in travel and hospitality loyalty, to talk about the trends, challenges and strategies for success that all hotel loyalty program leaders need to know.

Together, we discuss:

The evolution of loyalty programs in the hotel industry:

- How loyalty programs have evolved
- The catalysts behind developments
- How hotels are measuring success from their loyalty programs

The challenges and barriers to success:

- Challenges hotels face today in recognizing and rewarding members of their loyalty programs?
- The discussion around sustainability across hotel and the wider travel sector
- Solutions that exist to overcome the challenges and roadblocks

The future of loyalty in the hospitality industry:

- The new trends that Vicky sees being tried and tested in the hospitality loyalty space
- How loyalty programs can leverage data analytics and customer insights to offer more personalized experiences and rewards
- How program leaders should go about selecting which one to partner with?
- Advice to a hotel company either wanting to launch a loyalty program or review their existing loyalty proposition

A must listen for anybody involved with travel and hospitality loyalty, listen here, or read the transcript below.

(1:30) You've been a leader in loyalty marketing and CRM in the hospitality sector for many years now. So how has the hotel loyalty program evolved during this time?

"Yes, probably more years than I care to remember! The hotel loyalty space, if I'm not mistaken, is about 30 years old now. I think Marriott or Holiday Inn were the forerunners of hospitality loyalty and it was very much the collect points for free nights type of program. And then obviously, a lot of the bigger chains jumped on board in the following years and hotel programs became very much a conduit into the airline programs, which were already more established and already much bigger. Through partnerships they fed into the airline travel programs. That then led on to partnerships with financial institutions, especially the likes of American Express.

"Today, the hotel programs are very much essential programs in their own right. Marriott now has nearly 200 million members, over 30 brands, nearly 9,000 hotels worldwide. Hilton is not far behind with 173 million members. And then now you've got alliances such as the Global Hotel Alliance, which is bringing together some of those smaller to medium sized hotel chains. I think they have now 40 brands and over 800 Hotels within their alliance and all joined through a loyalty program. So, co-brand credit cards, partner networks, sponsorship of major events, celebrity endorsement...these aren't just linked to the big retail brands anymore, you see a lot of loyalty programs out there sponsoring, whether it's global football tournaments, tennis, cricket, motor racing, etc.

"Loyalty programs within the hotel industry and moving more away from the points for free nights model, to really becoming a self service experience for the member throughout their hotel stay, whether that's giving them access to things like online checking, keyless door entry, preferred room choice, and even room settings before they arrive, as well as more the transactional benefits. Still collecting points but being able to redeem them for a plethora of other rewards, whether it's in hotel or through partnerships that they have."

(3:56) What has been the catalyst for this change? Why are these big hotel chains looking at the wider experience rather than just points for nights?

"I think a lot has been brought about through industry consolidation. Really the only competitive advantage now is the experience that you can give to your members and to your guests. It's very easy for competitor hotel chains to copy awarding points or a particular in hotels say benefit. But what resonates with the customer, what resonates with the guests and therefore your key differentiator is how you make them feel when they're staying with you. So really through the customer demand and customer expectation and moving away from that transactional to the emotional loyalty. Guests expect to be known. They expected to be recognized. They think they've told you their preferences once, so they don't want to have to repeat themselves. Loyalty is about bringing in this much more one-on-one emotional loyalty that has been the catalyst."

(5:14) That's a nice little segue into the next question, which is how are hotels measuring success from a loyalty program? How do they know that they're delivering the best experience?

"I think obviously they still have the usual loyalty measures of healthy program redemption rates, breakage, number of active members. In the hotel industry, we've obviously focused a lot on the impact on business. So, retention rates, customer lifetime value, and then looking at the average spend of a member versus a non-member during their stay throughout the year. And looking at that recency, frequency, monetary value. We're now also pulling in customer satisfaction scores, customer effort scores, net promoter scores, and how your relationship with that customer influences other people to come and stay at your property as well."

(6:06) There's a lot to think about for these hotel chains now, in terms of their loyalty program. So therefore, there must be lots of challenges and barriers to success. From your perspective, what challenges are hotels facing today in recognizing and rewarding members of their programs?

"I think there are two big challenges. I think one is making sure that colleagues and employees in the hotel chains on the ground are familiar with, educated with, and involved with the hotel loyalty program, so that they don't see it as just something they've got to do, but understand the reasoning, why they have the program, and what those benefits are and what the members' expectations are, and being able to deliver that consistently at a hotel level. There's quite a lot of staff turnover, whether it's front desk, in restaurants, etc. So, it's really that employee engagement, I think that's going to become increasingly important. And looking at employee loyalty is almost as important as looking at the customer loyalty as well.

"And then secondly, data. There's a lot of siloed, disconnected systems within the hotel industry, whether it's from the reservation platforms to their point-of-sale terminals and restaurants, Spa and fitness, to the property management systems, table reservation systems, their CRM, their revenue management... There are so many different locations where data is stored, not necessarily in a consistent manner. They've all evolved over time, but the data hasn't really been brought together. So, I think a major challenge is being able to pull that data together in a manner that's GDPR compliant, that captures member consent and preferences, but then is also being processed in a way that empowers and enables hotels to be able to reward and recognize their guests on an ongoing basis.

"So, I think those two areas are the main challenges for hotel chains today, whether they're small, individual properties, or the I imagine those challenges are even bigger for some of the mega chains out there."

(8:24) So how do we overcome those challenges? What solutions are out there to help loyalty programs?

"I think there's a lot more now in the employee loyalty space, whether that's connecting with learning management systems. And often this is something overlooked from a loyalty program perspective, there's a lot to focus on delivering service in the hotels, but maybe not so much on educating around the loyalty program, etc. I know the big chains definitely have that, but some of those smaller chains, not necessarily so. Then, hotels need to have a reward mechanism that incentivizes colleagues to engage with the hotel loyalty programs as well.

"From a data perspective, there is a lot of middleware out there. There are quite a few companies that specialize now in taking your data and delivering it to your front of house employees. So, they're able to take action on it as well. So, it's out there. It's just being able to choose which one's the right fit for you and fits the gaps within your customer journey that are currently maybe pain points are somewhat disconnected."

(9:34) On that, what questions should a loyalty program leader manager be asking to ensure they get the right software?

"I think they start with their customer journey. At the end of the day, technology is an enabler, it shouldn't be the solution. So, looking at your customer journey from the time that they even start to think about booking a holiday, when they haven't necessarily chosen your chain, all the way through to once they've left and the reminiscing and that whole customer cycle. It's looking at how you interact, where you interact, what platforms you've got, what data you have. And then again, going back to that customer effort measurement, what effort is it for a customer to engage with you across all of those different touch points within the customer journey? And then from that, you're able to identify where your gaps are, where your pain points are for your customers. And from there, you can look at what technology solutions will help you bring that together, whether that's complementing what you already have within your tech stack, or whether it's replacing what you have out there."

(10:38) Before we move on to discuss the future of loyalty, going off on a bit of a tangent here, but I would quickly like to talk about sustainability, which is a topic that I know is close to your heart, and is a topic that that's impacting the wider travel sector at the moment. Is sustainability becoming an important element of hotel loyalty programs? And if so, how are hotels incorporating these aspects to engage customers?

"Yes, it is becoming an increasingly important element into drivers of consideration for a traveler when they're booking their hotel stays, their airline, whether it's with a travel agent, or directly, it's becoming much more of a consideration as to which hotel brand they're going to choose. How is that being incorporated into loyalty programs? To be honest, the answer is not very well.

"The hotel industry overall, is taking amazing steps in addressing sustainability measures, protecting natural environment, promoting societal wellbeing, whether that's through eco-friendly products, waste minimization solutions, energy saving technologies, environmentally-friendly guest services, bike rental, those little notes that you get on your beds to remind you not to use the towels, or change the towels every day, locally sourced food products, even being able to track the food through the process within the hotel to minimize waste there. And then also supporting local communities through food banks or charitable initiatives. And then on the social responsibility side through the hiring and ensuring equality within the hotel teams.

"The World Travel and Tourism Council has come up with 12 basic criteria for the hotel industry based on three core pillars of efficiency, planet, and people. Hotels are starting to share those on social channels. They're starting, they're obtaining certification from distribution channels, but it hasn't really filtered down as much into loyalty programs yet. You see some brands incorporating the ability to donate points to charitable organizations, or to participate in experiences, it could be things from tree planting, or whatever. But there's nothing that really matches what they're doing at a higher level at a more substantial level. And this could ultimately be rewarding guests for eco-friendly choices during their stay.

"I think you know, green loyalty programs do attract the environmentally conscious traveler who seek to have the hotel experiences align with their values that they have. But the ability to do this hasn't really evolved as much. But these initiatives and once a hotel company understands how they can track trace and reward what a guest will do on property, then they could definitely foster that emotional connection with guests and encourage them to return and recommend the hotel to others as well."

(13:47) That sounds like an important part of a future loyalty strategy for hotels there, which moves us very nicely on to the future of loyalty in the hospitality industry. With that in mind, what are some of the new trends you see being tried and tested in the space?

"There's a lot around AI at the moment. Whether that's from chat bots helping you book your hotel stay online, you maybe get stuck with something and the Chatbot pops in and says how can I help you, then connects you to a real live person if the if the bot can't answer, to answering simple questions, being able to connect through chats to order your room service or a cocktail on the beach, there's a lot of AI driving efficiencies and improving the guest experience on property or when they're booking. I think these will only continue to improve.

"From a loyalty program perspective, there's huge potential in card linking products when you're talking about having your loyalty program not only during your hotel stay but meaning something to you or being incorporated into your life when you're back at home, whether that's being able to redeem points for merchandise that you use every day for gifting, being able to collect points whilst you're shopping or in your day to day activities. So being able to connect that value proposition to outside of the of your hotel stay."

(15:17) Does that mean hotels need to work with loyalty platforms that have a really wide rewards marketplace and can drive to connect brands to communities? Is that where the future is do you think?

"Definitely, that's a component of it? Absolutely. So Being able to reward members outside of their own ecosystem, and employees as well, I think such platforms or play will be very important to employee loyalty and driving that employee space who don't necessarily want to or have the means to go and dine or stay at the hotel properties, but want to be able to choose some sort of reward that's relevant to them. So yes, definitely.

"I also think that just understanding how and why a customer wants to engage with you, or engage with other travel partners, and who those travel partners are through the enhanced data analytics and customer insights that will help drive those personalized experiences, that emotional connection. You want members to think, okay, these people really get me they really know me, they're going to make my travel experience seamless, so I can get make the most out of my time, whilst I'm in my destination."

(16:26) We've touched on this already, but there's a huge choice of platform providers and technology out there vying for business. Is there anything else you would like to add on that topic in terms of selecting which one to partner with?

"As I said before, I think it's very much linked to the customer journey and where your gaps are. But then also, the hospitality industry is quite unique in the way its tech stacks are structured, and how everybody interacts very differently with the technology. So having a partner that potentially has that experience already with the hospitality industry, or at least within the travel industry and understands what you're trying to achieve, and is aligned with you and understand your vision, then I think that's important, too."

(17:14) Bringing all of the different strands we've talked about together, what would your advice be to a hotel company who either wants to launch a loyalty program or who wants to review their existing proposition?

"I think there's a lot of hotel companies, not only hotel companies, but a lot of businesses that go out there today saying, "I need to get my I need to understand my customers better I need to get customer data, I need to have a loyalty program to do that". Okay, there's a couple of objectives in there, but it's maybe not the best way to start. I think understanding what type of behavior you're looking to drive. What loyalty actually means to you as a business, you know, is it repeat stays, is it increased wallet value? Is it multiple stays across multiple destinations? Is it advocacy? It could be a combination of all of these things, but very clearly setting out your objectives that are very much aligned with your vision of your company and what your company stands for and what its purpose is, remains vital. Start from the top work your way down.

"And as I said before, the technology part is really an enabler to all of that, rather than the solution. So, work on your strategy, work on your objectives. And from there, look at what your customers want from you what they're expecting from you speak to your customers, understand what they value, what drives consideration when they're going to book with you, how they like to be treated on property, and start there, rather than starting with a solution of I need a loyalty program and I need to tech solution to do that.

"I think spending more time on that whole discovery and design phase is really important, rather than jumping straight to delivery."

Loylogic, a global leader in loyalty and rewards engagement, has appointed Amit Bendre as its Chief Operating Officer (COO).

With a remarkable 13-year tenure at Loylogic, Amit has showcased exceptional leadership in pivotal domains such as product management, project management, technology, and operations. His extensive experience uniquely positions him to drive operational efficiency and maintain high client service standards as COO.

Amit's strategic vision aims to streamline operations and optimize efficiency across Loylogic's spectrum. By leveraging talent, refining processes, and embracing automation, he is poised to spearhead Loylogic's ambitious Brands2Communities growth strategy. This strategy seeks to foster direct relationships between 1,000 brands and over 100 million loyalty program members, driving significant revenues for partner brands.

Expressing his enthusiasm for the role, Amit said: "Serving as COO at Loylogic represents the culmination of my professional journey. I am dedicated to leveraging my insights and industry knowledge to cultivate an operationally superior organization known for its innovation, efficiency, and client satisfaction.

"In my capacity as COO, my primary focus is to harmonize teams and optimize the delivery of Loylogic's groundbreaking solutions. Central to our transformation is the adoption of process-driven methodologies, empowering teams with shared expertise and decentralized knowledge."

Gabi Kool, CEO of Loylogic, commended Amit's appointment, highlighting his pivotal role in shaping Loylogic's flagship solutions and his esteemed reputation among clients and colleagues.

"Loylogic remains steadfast in its commitment to delivering unparalleled solutions in the loyalty and rewards domain. Amit's expertise in technology, product development, and operations will fortify our position as industry leaders, driving innovation and excellence."

Loylogic, a global leader in loyalty and rewards engagement, has appointed Amit Bendre as its Chief Operating Officer (COO).

With a remarkable 13-year tenure at Loylogic, Amit has showcased exceptional leadership in pivotal domains such as product management, project management, technology, and operations. His extensive experience uniquely positions him to drive operational efficiency and maintain high client service standards as COO.

Amit's strategic vision aims to streamline operations and optimize efficiency across Loylogic's spectrum. By leveraging talent, refining processes, and embracing automation, he is poised to spearhead Loylogic's ambitious Brands2Communities growth strategy. This strategy seeks to foster direct relationships between 1,000 brands and over 100 million loyalty program members, driving significant revenues for partner brands.

Expressing his enthusiasm for the role, Amit said: "Serving as COO at Loylogic represents the culmination of my professional journey. I am dedicated to leveraging my insights and industry knowledge to cultivate an operationally superior organization known for its innovation, efficiency, and client satisfaction.

"In my capacity as COO, my primary focus is to harmonize teams and optimize the delivery of Loylogic's groundbreaking solutions. Central to our transformation is the adoption of process-driven methodologies, empowering teams with shared expertise and decentralized knowledge."

Gabi Kool, CEO of Loylogic, commended Amit's appointment, highlighting his pivotal role in shaping Loylogic's flagship solutions and his esteemed reputation among clients and colleagues.

"Loylogic remains steadfast in its commitment to delivering unparalleled solutions in the loyalty and rewards domain. Amit's expertise in technology, product development, and operations will fortify our position as industry leaders, driving innovation and excellence."

The latest episode of the Loylogic Group Podcast brings together two experts to delve into the evolving landscape of airline and hotel loyalty programs.

The latest episode of the Loylogic Group Podcast brings together two experts to delve into the evolving landscape of airline and hotel loyalty programs.

Irish Life and Loylogic have agreed a multi-year extension to their partnership that will see the two organizations further develop the successful MyLife health and wellbeing program.

Irish Life and Loylogic have agreed a multi-year extension to their partnership that will see the two organizations further develop the successful MyLife health and wellbeing program.

Loylogic, the global loyalty and rewards engagement specialist, has appointed Samir Skif as the Head of Ultimate, its all new motivational rewards and recognition currency.

Loylogic, the global loyalty and rewards engagement specialist, has appointed Samir Skif as the Head of Ultimate, its all new motivational rewards and recognition currency.

Nescafé Dolce Gusto multi-beverage system and Loylogic, the global loyalty and rewards engagement technology specialist, have extended their collaboration on the successful PREMIO loyalty program for a further five years.

Nescafé Dolce Gusto multi-beverage system and Loylogic, the global loyalty and rewards engagement technology specialist, have extended their collaboration on the successful PREMIO loyalty program for a further five years.

Loylogic, the global loyalty and rewards engagement technology specialist, has appointed Emma Shakespeare as Head of Global Sales.

In her role, Emma will be responsible for driving Loylogic’s ambitious ‘Brands2Communities’ growth strategy, which aims to build direct relationships between 1,000 brands and at least 100 million loyalty and rewards program members, driving significant revenues to these brands. Emma will focus on driving strategic and structural change, building internal processes within Loylogic that allow the business to scale up its customer facing teams and significantly increase the number of collaboration opportunities with loyalty partners.

Over the last 16 years, Emma has held various senior sales roles across a range of technology focused organizations, including SAP and SAS, not only delivering sales growth but turning customers into advocates of the brands. This extensive enterprise sales leadership experience will enable Emma to nurture existing customers and identify new business channels in order for more companies to benefit from Loylogic’s expertise.

“It’s incredibly exciting to be joining Loylogic as the business embarks on a new phase in its growth,” said Emma. “Our clear strategy that focuses on connecting Brands2Communities provides us with a compelling value proposition into our key verticals of FMCG, travel and hospitality, and finance. The organizations I’ve worked for have enjoyed exponential growth and I’ll be bringing know how from my time at those to scale and build out a sales culture with processes that fully support the customer journey.”

Gabi Kool, CEO of Loylogic, added: “We’re thrilled to bring Emma on board at such a pivotal time in Loylogic’s journey. She brings a wealth of experience and expertise to the role and will play a key part in delivering on our ambitious growth strategy, as we continue to enhance our offer to the market.

“We continue to invest in adding new brands and categories to our portfolio, while also building direct brand relationships with the biggest, most desirable brands in the world. This is enabling us to deliver the reward shops of the future and introduce a branded shop-in-shop concept that will help both brands and loyalty programs build revenue and stand out from their competition. To have Emma on board at this time, to help as many organizations as possible benefit from our solutions, is truly exciting.”

To talk to Emma about how your organization can benefit from Loylogic's solutions, contact us by clicking here.

Loylogic, the global loyalty and rewards engagement technology specialist, has appointed Emma Shakespeare as Head of Global Sales.

In her role, Emma will be responsible for driving Loylogic’s ambitious ‘Brands2Communities’ growth strategy, which aims to build direct relationships between 1,000 brands and at least 100 million loyalty and rewards program members, driving significant revenues to these brands. Emma will focus on driving strategic and structural change, building internal processes within Loylogic that allow the business to scale up its customer facing teams and significantly increase the number of collaboration opportunities with loyalty partners.

Over the last 16 years, Emma has held various senior sales roles across a range of technology focused organizations, including SAP and SAS, not only delivering sales growth but turning customers into advocates of the brands. This extensive enterprise sales leadership experience will enable Emma to nurture existing customers and identify new business channels in order for more companies to benefit from Loylogic’s expertise.

“It’s incredibly exciting to be joining Loylogic as the business embarks on a new phase in its growth,” said Emma. “Our clear strategy that focuses on connecting Brands2Communities provides us with a compelling value proposition into our key verticals of FMCG, travel and hospitality, and finance. The organizations I’ve worked for have enjoyed exponential growth and I’ll be bringing know how from my time at those to scale and build out a sales culture with processes that fully support the customer journey.”

Gabi Kool, CEO of Loylogic, added: “We’re thrilled to bring Emma on board at such a pivotal time in Loylogic’s journey. She brings a wealth of experience and expertise to the role and will play a key part in delivering on our ambitious growth strategy, as we continue to enhance our offer to the market.

“We continue to invest in adding new brands and categories to our portfolio, while also building direct brand relationships with the biggest, most desirable brands in the world. This is enabling us to deliver the reward shops of the future and introduce a branded shop-in-shop concept that will help both brands and loyalty programs build revenue and stand out from their competition. To have Emma on board at this time, to help as many organizations as possible benefit from our solutions, is truly exciting.”

To talk to Emma about how your organization can benefit from Loylogic's solutions, contact us by clicking here.

We find out how African Bank’s Audacious Rewards program is incentivizing positive financial behavior for all customers.

We find out how African Bank’s Audacious Rewards program is incentivizing positive financial behavior for all customers.

For a recent episode of the Loylogic Podcast, Olivier Martinet, CEO of Posidonia Consulting and former Vice President of Marketing at BP, joined us to discuss the future of large-scale fuel and mobility rewards programs.

The conversation focused on the evolution of loyalty strategies in the fuel industry, driven by digitalization, the shift towards electric vehicles, and the transformation of fuel companies into energy providers and mobility hubs, and much more.

To listen to the podcast in full, simply click below. Six key route markers that will help loyalty programs navigate the changing fuel loyalty landscape can be found below.

1. There’s no one-size-fits-all approach: Olivier challenged the notion of a universal best-in-class fuel rewards program, emphasizing that success is highly dependent on the alignment between the program, company strategy, and readiness for implementation. He did, however, introduce four pillars that loyalty program owners should consider that will drive success, namely: ease of participation, relevance, personalization, and profitability. By focusing on these four elements, companies can find the right balance between customer advantage and strategic adaptability.

2. Loyalty strategies need to be tailored to company size and scope: The level of focus on the four pillars needs to vary depending on the company's size and global reach. For example, larger organizations tend to have a greater need to balance customer advantage and brand consistency, reflecting a more comprehensive approach to loyalty programs that considers both local and global factors.

3. The shift to electric vehicles will have a profound impact on loyalty: Olivier highlighted the impact of the increasing adoption of electric vehicles on how customers interact with brands – and therefore loyalty. Consumer interaction will change and loyalty programs must adapt to this new behavior.

4. Fuel companies transforming into energy providers: Major fuel companies are repositioning themselves as energy providers, with collaborations and investments in alternative energy sources already underway. This shift suggests a future of potential joint ventures and partnerships, reflecting a broader transformation within the energy sector. This needs to be factored into thinking around loyalty and how both earn and burn of points or miles happens.

5. Extended dwell times and mobility hubs: The rise of ‘mobility hubs’ is impacting loyalty offers. Longer customer dwell times due to electric vehicle charging present new challenges and opportunities for loyalty programs. Companies need to rethink their strategies to engage customers during extended on-site interactions and integrate these experiences with home charging behavior.

6. Personalization beyond marketing: All loyalty programs, regardless of sector, should go beyond marketing and engage in strategic decision-making. Olivier emphasized the wider range of use cases that arise from privileged customer data, including category management, pricing policies and assortment range. As a result, loyalty schemes should be considered as long-term strategic tools that have a seat at the boardroom table.

In conclusion, the future of fuel rewards programs is dynamic and requires companies to adapt to digitalization, changing consumer behaviors, and the broader energy landscape. Success lies in a personalized and adaptable approach that considers both customer needs and long-term strategic goals. As fuel companies transition into energy providers, collaboration and innovative loyalty strategies will play a crucial role in shaping the industry's future.

For a recent episode of the Loylogic Podcast, Olivier Martinet, CEO of Posidonia Consulting and former Vice President of Marketing at BP, joined us to discuss the future of large-scale fuel and mobility rewards programs.

The conversation focused on the evolution of loyalty strategies in the fuel industry, driven by digitalization, the shift towards electric vehicles, and the transformation of fuel companies into energy providers and mobility hubs, and much more.

To listen to the podcast in full, simply click below. Six key route markers that will help loyalty programs navigate the changing fuel loyalty landscape can be found below.

1. There’s no one-size-fits-all approach: Olivier challenged the notion of a universal best-in-class fuel rewards program, emphasizing that success is highly dependent on the alignment between the program, company strategy, and readiness for implementation. He did, however, introduce four pillars that loyalty program owners should consider that will drive success, namely: ease of participation, relevance, personalization, and profitability. By focusing on these four elements, companies can find the right balance between customer advantage and strategic adaptability.

2. Loyalty strategies need to be tailored to company size and scope: The level of focus on the four pillars needs to vary depending on the company's size and global reach. For example, larger organizations tend to have a greater need to balance customer advantage and brand consistency, reflecting a more comprehensive approach to loyalty programs that considers both local and global factors.

3. The shift to electric vehicles will have a profound impact on loyalty: Olivier highlighted the impact of the increasing adoption of electric vehicles on how customers interact with brands – and therefore loyalty. Consumer interaction will change and loyalty programs must adapt to this new behavior.

4. Fuel companies transforming into energy providers: Major fuel companies are repositioning themselves as energy providers, with collaborations and investments in alternative energy sources already underway. This shift suggests a future of potential joint ventures and partnerships, reflecting a broader transformation within the energy sector. This needs to be factored into thinking around loyalty and how both earn and burn of points or miles happens.

5. Extended dwell times and mobility hubs: The rise of ‘mobility hubs’ is impacting loyalty offers. Longer customer dwell times due to electric vehicle charging present new challenges and opportunities for loyalty programs. Companies need to rethink their strategies to engage customers during extended on-site interactions and integrate these experiences with home charging behavior.

6. Personalization beyond marketing: All loyalty programs, regardless of sector, should go beyond marketing and engage in strategic decision-making. Olivier emphasized the wider range of use cases that arise from privileged customer data, including category management, pricing policies and assortment range. As a result, loyalty schemes should be considered as long-term strategic tools that have a seat at the boardroom table.

In conclusion, the future of fuel rewards programs is dynamic and requires companies to adapt to digitalization, changing consumer behaviors, and the broader energy landscape. Success lies in a personalized and adaptable approach that considers both customer needs and long-term strategic goals. As fuel companies transition into energy providers, collaboration and innovative loyalty strategies will play a crucial role in shaping the industry's future.

Join us for the latest episode of the Loylogic Podcast as we explore airBaltic's pioneering entry into Web3 with NFTs in their airBaltic Club loyalty program.

Join us for the latest episode of the Loylogic Podcast as we explore airBaltic's pioneering entry into Web3 with NFTs in their airBaltic Club loyalty program.