Loyalty. It's a word you don't hear much from people when it comes to shopping. I even admit that I'm not loyal to any particular retailer or business. I used to be loyal to Starbucks until I discovered other coffee establishments with better-tasting coffee and free wifi. And it's not just people in the U.S. who aren't loyal. This news report says that despite the rise in store loyalty cards, Britons are increasingly shopping around. The problem (or not - depends on how you look at it) is that people just have way too many options nowadays.
Although people love loyalty programs, it doesn't necessarily mean that they're going to be loyal to a particular brand. I have a Borders Rewards Card, but once in awhile you'll find me in Barnes & Noble or on Amazon.com buying a book. Keeping a customer isn't about giving them a card with promises of free stuff or discounts (although it is nice sometimes!), if you truly want loyal customers, then all you have to do is offer great customer service.
If you're looking for ideas on how to create loyal customers, I recommend reading this article, Five Ideas for Using Brand to Drive Guest Loyalty. The article offers examples for the hotel industry, but the basic ideas could be used by anybody.
Anyways, going back to this idea that loyalty is declining...
What would it take for people to be completely loyal to a brand? In this recession that we're supposed to be in, do bargains and deal trump brand loyalty?
Photo Credit: Jacob Boetter
Ohhhh... now you've done it. This hits so close to my biggest pet peeve. I agree with lots your said, but not with one thing. Awesome, even the best ever, customer service does not engender loyalty. After years, and years, and years of working in customer service and having seen it all I can tell you one thing: loyalty does not exist. Awesome customer service predisposes a customer to be a return customer, not remain a customer. Even then, the return is not assured.
It is not a once instance of awesome customer service the creates loyalty - nothing does. It is the consistent and persistent delivery of great experiences that brings customer back -- but just for one more try. You are bound to have your goodwill disappear with just the littlest mistake.
I always tell my customers that loyalty does not really exist. If you create and delivery impeccable customer experiences, you are predisposing customers to return so they can give you another chance. That - is all you can ask from from them.
Thanks for a great topic, and really well written entry. nice job.
Posted by: Esteban Kolsky | July 22, 2008 11:05 PM | Permalink to Comment