More and more companies in Poland are running loyalty programs for their business partners. Entrepreneurs considering implementing one face a dilemma: do it with their own resources or rely on external support.
What does outsourcing a loyalty program offer, and in which areas can a company expect help from industry specialists? Experts from Sodexo Benefits and Rewards Services have prepared a few practical tips.
Entrepreneurs know that a good loyalty program is a way not only to increase sales,
but also to build their competitive advantage. However, to bring the expected results, it requires a substantial dose of knowledge, the right technical infrastructure and a team to carry it out.
A moment of self-reflection
At the planning stage, many companies do not realize how complicated an undertaking it is to prepare and effectively run a sales support campaign.
Before a company decides to introduce loyalty activities, it must carefully analyze its internal resources. The most important question to ask is whether employees have the right knowledge, experience and time to effectively achieve the assumed goal. The technical infrastructure also matters – whether the existing system will allow for proper collection and processing of data and effective communication with participants – said Krzysztof Majdan, Manager for Program Development and Support at Sodexo Benefits and Rewards Services.
Only on the basis of such an analysis can a company decide whether and to what extent it will need help. It may opt for full outsourcing of the project or hand over just a slice of it to an external partner – for example, managing the rewards catalog or communicating
with program participants. In every case, what counts is the end result – achieving the business goal behind the entire campaign.
Profit and loss account
When considering the outsourcing of loyalty activities, some entrepreneurs believe it will not pay off for them. It is worth realizing, however, that although commissioning the running of a program involves an expense, the fixed costs the organizer has to bear are lower than if it decided to run such a campaign on its own. First, it does not have to engage developers to prepare the system used to manage the program or hire additional staff for technical support. Second, the costs of storing and distributing rewards to participants, as well as any complaint handling, are shifted to the external partner. Third, experts support the organizer in all tax and legal matters, which allows for cost optimization.
There are also other important advantages of outsourcing that cannot be valued – know-how and experience
in running similar projects. External specialists select the right form of the program for the target group, prepare an extensive rewards catalog tailored to its expectations,
and also provide the support of professionals who manage and analyze the course of the entire campaign on an ongoing basis. Entrusting the program to professionals guarantees its stability and efficient execution,
and this translates into achieving the goal set by the organizer.
