Every marketer at every company in every corner of the corporate world eventually says it:
“I want my customer to be passionate about my brand!”
And inevitably, there’s a skeptic in the room who says:
“A loyalty program won’t do it, because a loyalty program is just a bribe.”
One of the first things we say when we hear these statements is that you have to keep in mind what a loyalty program can do and what it cannot do. — a program can enhance a brand by creating a bond beyond a single transaction; however, a program cannot fix a product or pricing problem, much less counter macro-economic trends. In short, a loyalty program can create emotional loyalty, but it can’t perfume a pig.
How the best brands create passion
It is true that many brands known for enjoying passionate customer loyalty often create that passion without a loyalty program. Marriott and Virgin America are among the top brands that have “points and rewards” loyalty programs. Other leading brands like Apple and Zappos engender loyalty with category-changing innovation, rabid dedication to service, or by creating a brand mystique through marketing. And they usually do it in categories where consumers tend to want involvement and engagement.
Whether loyalty is driven by intrinsic factors in the business model and execution or through a programmatic approach, loyalty efforts have the greatest chance of success when they create both rational and emotional loyalty.
Rational loyalty addresses the question “What do I get for being loyal to you?”
The rational value equation should be designed as a quid pro quo – buy X times and you’ll get something free. No program can literally bribe a member to do something they don’t want to do and achieve any kind of repeat loyalty; however, with good program design, the member will think he received a fair value and return for his loyalty. With great implementation, the member will think he got a special deal, and might even go home and tell some friends or family what a great deal he got.
Emotional loyalty addresses the question “How do I feel about doing business with you?”
At the very least, members should feel that their patronage is recognized. When you hear members talk about the great programs, they literally describe how the program helped them achieve their aspirations or engaged their imagination.
The tools that have proven effective over time for building positive feelings, or emotional loyalty, include recognition (which might or might not include formal status, e.g., Gold, Platinum, VIP, etc.), congratulations upon reaching milestones, invitations to special events, even – especially, perhaps – a simple, heartfelt thank-you, unencumbered by any offer or sales message.
Today there are more channels and vehicles than ever for building emotional loyalty. For years, many loyalty programs moved backwards because they failed to address changing aspirations and incorporate the emerging tools that engage the imagination.
These programs still take days or weeks to post what the member has earned when the member expects real time mobile access and response.
These programs still hand out gold, platinum or black cards for more overall purchases when members want to be recognized in different ways depending on what they buy, how they
want to buy it, and how they use it—plus today’s consumers aren’t impressed by card or a simple color change.
These programs still promote a separate “elite” 800-number when members would rather use their phones for anything other than making a call.
Leading programs deliver the experience members want, through channels they prefer
The loyalty programs that have moved ahead provide a better, more personalized member experience — an experience that’s real time, mobile, facilitates sharing of information, or
conversely, recognizes individual preferences and accomplishments depending on how the member wants to engage at any given point in time. Parts of the experience may be available to all
customers without membership, but it is the loyalty program that provides the context for gaining permission to track personal data across channels and customize the experience
accordingly.
That kind of member experience can mitigate the impact of customer care issues, service interruptions, negative media coverage, and even offset reasonable price differences in the
same selection set. As we’ve said, no program can overcome a consistent disadvantage in product, price or service. But through the normal ups and downs of business, program members
tend to remain loyal and experience significantly lower defection rates.
Remaining loyal to a brand in the face of a reasonable price difference or occasional negative experience is the essence of emotional loyalty – an emotional loyalty that is most
powerfully created within the context of a loyalty program.
PRINT
THIS ARTICLE
Copyright 2012 Metzner Schneider Associates, Inc.
Home
| 
