I am starting to research a new book on consumer loyalty marketing. It never ceases to amaze me how many so-called loyalty cards shoppers carry around - or don't as the case might be. I am interested in hearing from both shoppers and marketers over the next few weeks on what they think the myths are in loyalty marketing. Here's a taste:
- the $55,000 toaster - are you on track for one of these ?
- do points systems really work ?
- what is the shopper benefit from loyalty programs ?
- what is the retailer or marketer benefit ? does it justify the investment ?
- what is your favourite program ? why ?
- which programs are a 'rip-off' ? why ?
- what should marketers do differently ?
- do marketers take privacy issues seriously ?
and feel free to add your comments and questions below - let's get a debate going :)
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Well I'm staring at this comment box on two -22" HP wide screen monitors that I got from Airmiles for $0 (no shipping no nothing) in exchange for allowing them to know about my business credit card purchases I needed to make anyway. Oh I shop at Staples for office supplies, and buy my booze at the LCBO, and buy the odd tank of gas at Shell. Surprise! Thanks for the loot. You're welcome for the info.
ReplyDeletefrom @DebraTemplar: Why wld I want a card punched for a free cup of coffee after Ive paid for other 9? Who has wallet big enough for these cards? Wld rather have the unexpected free gift (as @ColesOnline sometimes does) or a 'no, its on us today'. We appreciate you.'#loyalty
ReplyDeleteI've tossed in all my loyalty cards. The return always seems so miniscule compared to what I have outlaid to get to the next threshold. At the end of the day, I don't think that the cards inspire loyalty. A customer's first criteria would be the price/quality/convenience profile of what they're seeking to buy.
ReplyDeleteAnd that's all beside the point of loyalty cards - they're designed to collect data on customer purchasing habits, right?
The only time I've known people to hang onto or use, their loyalty cards is if a)they can get a discount for that transaction, by using it or b)they are so in love with the product anyway, they'd buy it again with or without a card.
ReplyDeleteWhat I do find interesting, is the move toward offering such programmes or member's clubs which people join but never seem to use. Its almost as if people want to have the extras offered, but not necessarily take them up on it. For me as a consumer, I don't care about loyalty programmes. I'm not a loyal customer. Give me a great product and excellent customer service, go better than I expected and you've got me. This is how I will go when I start my business as well.
Loyalty programmes are nothing more than a lazy or uninspired person's excuse for not offering fantastic customer service.
comment on behalf of Ben Archer:
ReplyDeleteThree myths of customer loyalty:
#1. Loyalty is based on price alone.
#2. Customer rapport is over-rated.
#3. Rewards programmes aren't reciprocal.
The sooner businesses smash these myths, the better everything is for all involved.
Cheers,
Ben
Comment on behalf of Stephen Granville:
ReplyDeleteI think the biggest myth is the marketers' incessant insistence on trying to control not only loyalty, but every other human virtue and/or emotion.
Can I buy friendship?
Can I buy love?
Can I buy respect?
Some people think so. Some argue that everything can be viewed as 'trade' in one form or another. Yeh! Well I went to Uni too and I can say the same thing about sex...but I didn't marry everyone I bonked! So the question remains, is it 'real' friendship, love or respect? Or ARE there such things as real friendship, love or respect?
The Stockmarket seems to indicate that such virtues/emotions as confidence, fear, greed, guile are worth banking on?...but are we in control? Can we control ‘it’? Isn't that what a Government is for? To Govern? To stop a machine from exceeding it's specified limitations/performance parameters etc? Hmmm! It's looking like a circular argument to me and I'm by myself! :-P
So, are marketers attempting to buy actual 'loyalty', or are they a bit confused and actually dealing only with a short-term behavioural simulation? The appearance of it? If so, is it any less real? And does it matter given the motives for acquiring it?
It never ceases to amaze me how, with all of our 'isms', 'istics' and 'ologies' we continue to ignore the basics;
e.g. Newton's Law - For every action, there is an equal an opposite reaction.
Perhaps this simple observable truth can shed some light on why companies struggle with the 'loyalty' issue? Is it because they think they are dealing with actual 'loyalty'? Are they constantly miffed at their outcomes; that the ‘loyalty’ they spend so much on acquiring is seemingly so fleeting and fickle?
Newton's Law, Karmic Law, Murphy's Law, The Law of Entropy...there are plenty of Laws and Lawyers...but can anyone really see what's going on? Or are laws just agreed realities that are some feeble attempt to guide us collectively, like blind lemmings leading blind sheep, through Heisenberg's Uncertainty Principle?
So is Consumerism just an advanced form of entertainment? .
Newton's Law again?
e.g. When trying to control perception. Is the controller, but virtue of their attempts to control, immune to the ‘laws’ and/or ‘realities’ of perception? Are they subject to the myth they struggle to perpetuate and/or control? It’th a ‘mythtery’ that’th for ‘thure’!
You know we're ‘thoaking’ in it?
Cheers
Stephen G
PS There is only one way that anyone will obtain my loyalty...they have to earn it! How do they earn it? By giving it and/or reciprocating it!
How do they NOT earn my loyalty? By pretending to give it and/or reciprocate it!
Marketers might think they own customer loyalty, but we've all seen occasions of the most unexpected thing becoming the next big thing. Not always due to clever marketing either. As soon as you think you have a handle on it all, people will go and surprise you.
ReplyDeleteMuch easier to be honest, friendly and have integrity from the start, then you don't waste precious time and money trying to out-smart the next guy.
I'm glad you're giving this issue 'the treatment' Stephen! I'm off to bung a link to this post in our Small Business Owner blog. Best regards, P. :)
ReplyDeleteGeez! Did I do all that crappin' on just to say what sagewhite said so nicely in 2 paras?
ReplyDeleteWell said sagewhite :-)
I know it's difficult to argue philosophically and/or morally, or even reasonably, when bank accounts are considered the proof of the pudding?
But then it is also difficult to chart stars when one is busy genetically modifying potatoes....which of course are all washed away when the floods that we repeatedly don't see coming, come.
We'll just build more banks and buy more potatoes...right?
You know we're 'thtill thoaking' in it?
Cheers
Stephen G
PS I love it when some scientists say that it's ridiculous when someone draws a connection between an emotional state and a moon cycle.
I love it because I can butt in and say something completely stupid and irrational like:
But aren't our bodies about 87% water? And doesn't the moon move the oceans of the world?...all of them?...at once?
But that hasn't got a damn thing to do with marketing!...right? :-)
- the $55,000 toaster - are you on track for one of these ?
ReplyDeleteI'm on track for a -$20 a year toaster that will take less than 1 year to acquire.
- do points systems really work ?
Sure.
- what is the shopper benefit from loyalty programs ?
Something for nothing
- what is the retailer or marketer benefit ? does it justify the investment ?
Customer information. Yes.
- what is your favourite program ? why ?
the local coffee shop. No thinking, equivalent 20% discount.
- which programs are a 'rip-off' ? why ?
Ones you pay for, but they aren't really loyalty programs. There is no such thing as a rip-off loyalty program
- what should marketers do differently ?
As if I'd tell you that...
- do marketers take privacy issues seriously ?
Only as serious as they need to. What is the problem with privacy if it's all done by a compyd0re?