Three tips on how consumer packaged goods companies can expand their loyalty success

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Loyalty success boils down to mastering the basics of the “Three Cs” of consumer packaged goods (CPG) loyalty, says Sol Zia, consultant at LoyaltyOne Consulting and a contributing editor at Colloquy.

First, there is craft. It all goes back to planning. Management buy-in is essential, the right value proposition must be fully developed, and program and system set-up must be advanced carefully, says Zia.

Second, CPG marketers must commit. CPG brands shouldn't be afraid to establish the direct relationship with their consumers. Years ago, many CPG marketers feared disrupting relationships with retailers. However, there is a much stronger acceptance of the CPG direct relationship now. Consumer packaged goods companies should make sure they're in loyalty for the long haul so their campaigns aren't perceived as promotional flashes in the pan, says Zia. Consumers are savvier than ever and will talk about the problems or the disappearance of loyalty programs, so it's more important than ever that the game is well played, he says.

Finally, it's important to communicate, says Zia. CPG loyalty marketers — as those in other industries, such as travel and financial services have learned over the past two decades, must make their program rules and value proposition perfectly clear.

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