But you have to take into account that not everything is technology, must have a strategic vision to decide that we must integrate the CRM with loyalty program, and must always have a period to generate data. You have to wait to these data to mature. In the case of technology, Oracle solution we liked because it is generic and at the same time multi-industry. Offers us even more flexibility in our market, which already has the Jurisoft CRM. (3) I have a no-points loyalty program? Victor Vargas: Depends on the business strategy from the image, benefits, brand and goals. There can be no points programs but have tangible benefits, and with no visible members.
What matters is not if are points or no points, if not the value that brings to your members and communication or dialogue that you are going to promote them. It is not only accumulate points, we must be a cycle of communication. And here the CRM is important since the management of campaigns up to How to offer service, and eventually the use of social networks. (4) What are 3 key areas to define a loyalty program? Victor Vargas: Have to organize the objectives, see what we want to do. We want to increase sales, strengthen the brand, make cross-selling. These objectives must be tied to the business strategy.
Then we have to see which image and character we want to project with loyalty program. This defines the budget and the type of rewards. And finally, what levels of members want but with a focus on the profitability of the program, which brings us to measure benefits and not the costs. (5) Let’s talk about the budget and profitability program. I’ve seen that loyalty programs need at least 1% of sales as the programme budget. Victor Vargas: Yes, 1% is the average and with shared programs among allies can go up to 5%. In Mexico varies by industry and we have seen that in retail is between 1% and 2%. But as we talked about above, the budget has to be measured with results and benefits.