Background and challenge
A leading secondary ticketing marketplace was investigating the creation of a loyalty program to better position it to compete and win share in an increasingly competitive market.
The client engaged L.E.K. Consulting to help define the objectives of a potential loyalty program, identify lessons learned from analogous programs, understand the potential options available, and prioritize the ones that potentially create the most value through greater customer retention and spend.
Approach and recommendations
During the client engagement process, we performed the following tasks:
- Collaborated with the client to develop and iterate a working set of loyalty program objectives
- Drew on our extensive experience in the loyalty space and targeted new research to identify a set of loyalty comparables and best practices for the client to consider
- Conducted an online quantitative survey to understand how ticket buyers shop and, specifically, identifying which elements of a loyalty program activated which behavioral levers
- Developed a set of alternative loyalty program structures and evaluated the fit with the client’s objectives and potential economic uplift
- Worked with the client to identify the most attractive loyalty program structure
- Developed the action plan for the client to follow if it moved ahead with launch of a loyalty offer
Results
As a result of L.E.K.’s findings, the client gained an understanding of the size of the prize for a successful loyalty program and was able to evaluate the launch of one in the context of the other strategic growth initiatives it was pursuing.
10032019161049