What customer loyalty schemes work best?
We want loyal customers!
We want customers to buy more and refer others to us!
Of course we do, and there’s acres of print on ‘how to run customer loyalty schemes’, and what to offer as incentives.
There’s just one small problem …. It’s all rubbish!
Recent in depth research shows what we all know as common sense: customer loyalty schemes generally cost significantly more than they generate (not taking into account all the time taken up by them), and they generate no REAL loyalty, just loyalty to the treat.
It’s like training a dog: if a dog only sits in order to get a treat, it hasn’t really learnt to sit, and this ‘training’ will fall apart completely under pressure.
Customers cannot be bought.
I repeat: customers cannot be bought: they can only be seduced (over the LONG TERM) to WANT to be loyal to you and recommend you.
This comes about by obsessive focus on and adherence to ‘customer reputation and loyalty systems in everything we do’. I.e. we see ‘customer reputation and loyalty’ as the No 1 purpose of our existence, around which all our systems and processed are designed, and truly believe that:
‘If we do this well, the profits will follow … not the other way round’
Of course customer loyalty rewards can play a part in this (look at the Richer Sounds VIP club, or the Naked Wines Angel network for an example of this done well) … but it’s only one smallish part of the overall business strategy, and NEVER an effective strategy in itself.
Otherwise you just get a fat dog that sits when you have a treat in your pocket, and buggers off at any other time …
For free resources and help with customer loyalty systems that actually work, please drop us a line at firstname.lastname@example.org and we’ll send you our free ebooks on this subject.