The best loyalty program is still the “right” product
For the program to work, this mindset must be ingrained in the company's management model. (Photo: GETTY IMAGES )
Anyone who works in sales knows that just as hard as, or harder than, winning a new customer is… keeping them! In other words, getting a person to buy not just once but, if possible, “forever”, which is every company's dream.
In an attempt to maintain the connection with customers, so-called “loyalty programs” are multiplying for all kinds of products – from supermarket “coupons” that entitle you to prizes to frequent-flyer miles, among others.
These are marketing actions that basically seek to reward customers for maintaining their purchasing preference and thus encourage them to remain loyal to the brand.
Of course, there is nothing wrong with doing this, on the contrary, since these strategies can indeed reinforce consumer loyalty to a brand, which is certainly worthwhile in these times of increasingly competitive markets. Provided, of course, that it is done well – who hasn't been annoyed by complicated loyalty programs that expire quickly or that never have the prize you wanted to win?
However, we must not forget that these strategies can never replace the “right product”. If the product does not have the characteristics the customer wants, or if it is delivered late or with problems, the customer will be frustrated. In that case, having a loyalty program will be a futile effort, let's face it, since it starts out losing.
In other words, we must not forget that the best loyalty program is still the right product for the right customer, produced and delivered the right way and at the right time.
That way, the chances of frustrating the consumer will be slim; they will tend to feel that their needs are 100% met and will have far fewer reasons to look for competitors. Loyalty programs can then exist, but only as reinforcement. Real loyalty will only come from quality and cost/benefit superior to those of competitors. By the same token, it can be lost quickly if the customer's expectations are frustrated, and in that case no loyalty program can hold on to them.
For this to work, this mindset must be ingrained in the company's management model.
If management operates on the outdated model, which often “pushes” products forward regardless of whether they are the result of correct processes, there will obviously be a lot of frustration.
However, if management has a concrete concern with, for example, “doing it right the first time”, with this showing up right at the start, in product development, and running through the correct construction of all the processes that will produce and deliver to the customer, all planned to truly meet the consumer's needs, then loyalty initiatives will probably tend to become accessory.
And this only truly happens if it is an extension of the management model, whose vision is focused every day on creating perfect processes and routinely improving existing processes.
So, before thinking about loyalty programs, look at your processes and try to answer this question: Are they focused on creating, producing and delivering products and services that the customer wants and values, in the way the consumer considers appropriate?
This answer, if given honestly and accurately, can certainly shed light on the real way a company builds loyalty or drives customers away.
