Technology Vendors: Can’t Live With Them, Can’t Live Without Them
You want to freshen your loyalty program but you are already spending too much time managing your technology vendors. In the age of specialization, every move you make seems to need yet another vendor to help you navigate it. Vendor A built the base platform, Vendor B helps with an “earn” platform, and Vendor C helps with redemption. That does not even take into account Vendors D-Z that are all partners in some small way.
An Evolving Loyalty Solution
You’re already spending 22 hours of your week managing vendors. You know it’s imperative that your loyalty solution continue to evolve for you to gain an edge over your competitors and keep happy customers, but the idea of introducing a new vendor into the mix gives you the hives. So, you consider your current vendor pool and ask yourself who you already have that can help with your loyalty program? You will probably find one that will step up to the plate and develop a loyalty program. Ultimately though, unless that vendor is a partner that has people who specialize in revenue-generating loyalty programs, you’re going to end up with a sub-par program that helps you reach some of your business and marketing goals. If you’re lucky, you’ll be provided with some positive stats to get you through your Monday morning status meeting.
I was recently talking with an airline that had over 300 loyalty partners a couple of years ago. They have spent two years trying to lower that number. The problem is that even if they cut 90% of their loyalty partners, then they are still managing 30 partners. The cost of managing 30 partners is something that is very hard to make up.
The Goal of Customer Loyalty
The goal of a loyalty department is to grow loyalty, not manage partners. The job of a loyalty company is to make their clients’ world feel less stressful, not more so. Loyalty partners should manage the outside forces for their clients, allowing them to focus on their core job. Working with the right partner that treats you as a partner does just that. Working with 30 partners makes your job less about building loyalty and more about being a cat herder.
Turning A Cost Center Into A Profit Center
If your loyalty program is an expense and not a profit center, you’re doing your business a major injustice. All that time costs money. Working with the right partner rather than vendor eliminates those costs. Building the right plan turns your cost center into a profit center. Having more loyal customers, a higher profit over cost, and spending less time talking with vendors all seem to be good things.
DBG Loyalty is a leading innovator in loyalty and rewards marketing. DBG was founded in 2002 because the industry was looking for a trusted technology leader who could develop and establish consumer loyalty programs. DBG has customer relationships which span from the time of inception.
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