Customer Loyalty … Not All Customers Are Created Equal
We know that not all customers are created equal. Some customers are loyal to brands, while others are only looking for the lowest price possible. Some customers want to shop around and find the best deal for themselves. Others want someone to show them the best deal. Many want to be left alone, while others want to be communicated with frequently. Even with this knowledge, many loyalty programs treat all members the same. Customers shop, earn, spend, and repeat.
Personalized Rewards Programs
Some industries have found ways to personalize their programs better than others. Airlines have become experts at personalizing their programs by customer segments and, in some cases, all the way down to the individual. These include more ways to earn, status levels based on earn level, and most importantly, multiple perks and ways to spend all those points. However, many times those benefits only reward the ones who travel the most, not the person you hope to make more loyal as their travel frequency grows.
Communication is Key
Communication is a key element that many companies stress about and often do poorly. The fear of offending a few people by frequent communication means they miss out on key opportunities to interact with their core customers. Studies show that over 70% of consumers want to be communicated with and shown offers. Not doing so is doing a disservice to both your program and your members. Using more opt-in and opt-out choices gives you a better understanding of your members’ desires. For some, less may be more … but for others, more is truly more.
Just as each customer is different, so is the way you must to treat them. This includes everything from the way they earn, they way they are rewarded, the perks they get, or just how you communicate with them … it all matters. Treat customers as individuals that you are loyal to and you will increase the chances that they will be loyal to you.
Whether they are spending thousands of dollars on your product or $10 each year, you want it all to be spent with you.
That is what loyalty is truly all about.
DBG Loyalty is a leading innovator in loyalty and rewards marketing. DBG was founded in 2002 because the industry was looking for a trusted technology leader who could develop and establish consumer loyalty programs. DBG has customer relationships which span from the time of inception.
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