What is your definition of LOYALTY?
Loyalty is a tricky to define. While growing Profit With Loyalty, we asked lots of people: “What do you think of when you hear loyalty?”
No one mentioned the 14 (on average) programs they are a part of. No one mentioned frequent flier miles, punch-card programs, or discount programs.
Hence, the Labrador Retriever.
In The Leaders in Loyalty, a recent study conducted with the CMO Council, we found that 80% of the survey respondents participates in some loyalty program and the average person carries about 14 cards. They carry these cards despite the fact that 32% felt that program participation held little to no value. Marketers think they’re listening to their customers, but only 15% of respondents saw value in being able to provide feedback or insights back to the brand.
This is one of many huge disconnects we found in this study. Which then begs the question, are these “loyalty members” loyal to the brand because they find value in their loyalty, or are they loyal because there are no other options?
If only one airline services your airport, you will be ‘loyal’ to them. You will carry their loyalty card even in spite of the fact that the planes are dirty and late 100% of the time. I’m not sure you would be telling your friends how wonderful their service is, and that you wouldn’t jump ship at the first possibility of another transportation option. So is this true loyalty – or something else?
In speaking regularly with both B2B and B2C companies, many believe that loyalty and loyalty programs are different for companies and individuals. This may be true at some level, but aren’t all people - in both their personal and professional lives – seeking ways to make their life easier? Isn’t everyone looking to save money, save time, increase efficiency, increase effectiveness, grow their bottom line, etc., etc.?
Perhaps we, as marketers, should be looking beyond the loyalty program- beyond the punch cards and discount coupons, miles and prizes. Maybe we should actively engage in the 2-way conversation with our customers and use their feedback. What would happen if when we collected their data, we used it? Maybe then our customers would be talking about us in all their channels.
Some people call this advocacy. While we might lose the image of the Retriever, we will most likely gain our customer’s respect and grow our businesses.
Are you finding success in your loyalty programs? Tell us how!
Category: From the Desk of...
