VOICE OF CUSTOMER:
On a daily basis I am bombarded with so many offers from my bank…so many coupons…so many rewards points…loyalty points. However, when I wish to actually avail them, no offer is enticing enough.
In my experience, these alluring cash backs are never insta! I even wonder if they are ever credited to my account?
What’s the use. When I actually need to shop I find no discounts!
VOICE OF BANK:
The “Reward Programs” cost is high. I wonder if they really work? Various reports, excels and MIS show that some activity is happening. But does it is really impact the bottom line?
VOICE OF BUSINESS HEAD:
Eventually, last week, the Managing Director ordered that the current Reward Programs should be buried. The cost is much too high with negligible visible impact.
Angry, he also dictated that unless the team developed a cost-effective plan, they can pack their bags.
There was a flood of gloom. The team assembled in the boardroom. Tense. How could they resurrect the loyalty program?
This meant replanning. Quality replanning. Disruptive planning. The first step in quality planning is:
Who is the customer? The second step is: What are the customer needs?
The enlightened team realized that their customers are very confused with the current Reward Programs. The initial excitement wit offers, invariably experiences sudden death! Sad.
Consequently, the replanned loyalty program offered a differentiator – INSTA CASH BACK. The processes were designed to win customer trust.
Post roll out…VOICE OF CUSTOMER….
Wow.. This is exactly what I was looking forward to! How did the bank know? I can actually get cash back discounts instantly!! Wonderful!! This bank understands me.
Customer loyalty increased. The Managing Director reversed his dictate.
Lessons Learned
- Understand the customer needs, proactively
- Go beyond the “STATED” – Root cause /5Why wonderful tools
- Target may be achieved only with TEAM WORK
- Go beyond what competitors are doing – Looking beyond Traditional boundaries
- Analytics & Technology if used effectively can be great enabler