Rewarding your Customers
I received an email inquiry from a prospective client recently who read an online article and a comment I made almost two years ago. It always amazes me how things on the Internet stick around for so long. Luckily I still feel as strong today as I did two years ago about the topic - “Online Loyalty Programs Can Increase Repeat Shoppers.” There are many pros and cons around developing stand-alone Loyalty programs vs. participating in broader Loyalty Coalition programs and in some cases, there may be an opportunity to do both as long as the economics support that direction.
Thinking about the previous article/comment reminded me of an article I contributed to recently in DM News. The topic was whether or not a Loyalty program should be exclusive to only certain members or open to everyone. You can read the article yourself but I think the premise is too black and white when there are definitely shades of gray. My stand was that you could do both so long as the program was structured properly. There’s no question that your best customers deserve something special, perhaps even more than your average customer. Airlines have been doing this for many years with their tiered frequent flyer programs. The argument goes that getting someone to preffered status and giving them a “taste” of the good life will keep them more loyal so they don’t lose those benefits. I definitely think this works as I once flew cross country and back the same day just to put me over the mileage requirement before the end of the year. It was the longest “Roberto’s Run” in history I think. But I digress.
The key takeaway is that the airlines don’t offer their program only to their best customers, they have a program that appeals to the average consumer and tries to encourage them up the ladder of engagement. Companies should keep in mind strategies for how to best engage their customers, attract new customers and drive long-term economic value. And if you’re confused about how best to do this, let me know because Loyalty Marketers would be happy to help.