How to Wow

INSIGHT 43

MOST LOYALTY SCHEMES DON’T CREATE LOYALTY

Use this when you want to generate more value out of your customer loyalty programme.

When companies think of customer loyalty or loyalty programmes many often jump straight to the sort of incentives that they can offer to their customers to make them stick around.

Sure, people like things for free. Or, more for less. Who doesn’t?

But, in many cases that sort of tactic is no different from a price promotion. Moreover, according to a piece of research by fast.MAP⁸ in late 2013:

• 96% of consumers would be tempted to switch loyalties to a competitor by a good price promotion.
• 20% of consumers will switch loyalties if offered a better loyalty programme by a competitor brand.
• 33% use loyalty ...