The loyalty lie | RetailCustomerExperience.com - 6 views
-
most loyalty programs don't work
-
So, why don't most loyalty schemes work? Research points to several reasons. Loyalty programs are transactional. Loyalty isn't.
-
The best brand/consumer relationships are those that become transformative in the sense that the customer feels somehow better for having done business with the brand. The brand and shopping experience are the loyalty program.
-
I agree with the article, that loyalty programs are not working. In my own experience there are only TWO kinds of loylty programs that are working somehow. Firstly, a loyalty program that is introduced by a brand/shop/store that I am already loyal with, e.g. the favourite coffee shop, or the closest supermarket. In those shops a loyalty program might even lead customers to buy more and appreciate it. Secondly, what I think is also working are loyalty programs introduced by a pool of shops. E.g. in Germany we had PayBack for a long time, which was a joint loyalty program that gave you points in almost any major retailer in Germany, so it was used by a lot of people. Noone wants to have 10 or 15 loyalty program plastic cards in their wallet, though...
- ...2 more comments...
-
I believe one of the largest reasons why loyalty is such an obstacle in today's markets is primarily due to fast paced, innovative society that we live in now. Consumers are becoming so oriented to 'the next big thing' that it is increasingly difficult for businesses to keep up with this rapid changing of trends, especially considering the small window a product has before it is one-upped.
-
I thought this was interesting to read as I myself have several loyalty cards to various places. I never put much thought into it, but after this article it really emphasizes the fact that I. Not really loyal to the brand as much as e transactional benefits. Given an alternate and similar option at a better price I would probably jump ship from those I support now to something different. It may not create the sincere loyalty, but it has worked in keeping me to returning to certain places for the transactional benefits, so it doesn't seem like a total failure.