Description
In this Required Assignment you have the opportunity to bring together the concepts discussed throughout this program and examine how an enterprise can go about designing a loyalty program. You will examine this design by applying the concepts to Upcell Inc., the fictitious telecommunications company analyzed earlier in the program.
Begin by once again reviewing this case study download Preview the document, presented earlier in the program.
Assume you are designing a proposed loyalty program for the company. The management team has decided that its business objective and definition of customer loyalty are the following:
Business Objective: To increase customer lifetime value
Definition of Loyalty: Number of services used (e.g., voice, cable, cloud storage).
You have decided to use a loyalty program that offers redeemable points (i.e., a rewards program).With this in mind, answer the following questions regarding your proposed rewards program:Who can join the loyalty program?
What will be the features and benefits of the loyalty program?
What will be the earning structure?
What will be the basis for awarding points? (e.g., dollars spent, number of services used, volume of minutes used, volume of data, etc.)
What will be the number of points awarded? (e.g., 1 point per dollar, 100 points per service used, 1 point per MB of data, etc.)
Will all products and services earn the same number of points?
What will be the redemption structure?
Will points be redeemable for all Upcell products and services, or will redemption be limited to certain products and services?
What types of redemption options will be offered? (e.g., redeem for free product/service, bill credit, discounts, partners, etc.)
What will be the redemption pricing (i.e., number of points required) for each redemption option?
How will you use status tiers?
What will be the criterion for members to earn tier status? (e.g., dollars spent, number of services used, etc.)
How many status tiers will you have?
What will be the requirement to achieve each status tier?
Will there be differentiated features and benefits for the status tiers? (if applicable)
What will be the differentiated features and benefits for the status tiers?
How will you use bonus points?
Will you offer bonus points for certain products, services or other customer activities? (e.g., adding a new line, adding a new service, upgrading to a premium service, renewing a contract, etc.)
How will you use bonus points to grow customer lifetime value?
How will you use bonus points to increase sales of certain products and services?
