Customer Loyalty Programmes that Work

For me, these two words, “customer loyally” that have been put together bring to mind my mobile phone.

What has customer loyalty got to do with a mobile phone? My mobile phone is the one device I am most attached to. Beyond the close attachment, I still require the services of a network provider to make better use of this device. If you look around you, you will agree with me that we feel the least loyalty towards our network providers. No wonder most of us usually switch over from one network to another, keep more than one SIM card or even port our numbers to other networks. We are all looking for the best services, aren’t we?

As a marketer, I have come across many customer loyalty programmes, from loyalty/ point cards, rebates, rewards, appreciation, to first time user benefits and more. With what objective though? To enhance the overall value-proposition of a product or service which will in turn motivate customers / buyers to continue their patronage.

The crunch of this discussion which is of major concern to many business owners and senior managers is; do such programmes really work? Do they create extra loyalty or is it even feasible for every company to implement loyalty programmes?

According to the 2011 Colloquy Customer Loyalty Census, “of the $48 billion worth of perceived value in reward points and miles distributed by American businesses annually, one-third goes unredeemed by consumers. Companies lose money on time and effort, and customers get no more value from the businesses to which they are loyal”.

That’s in America, what about Ghana? If you asked me how I find the loyalty programmes provided by my network, I would say it is a waste of my time to text to a short code countless times in order to win a mobile phone or a ‘t’ shirt which I already have anyway. More so, chances of me winning are very slim, so why bother? As a result, there is little or nothing to show for the 10 years that I have remained loyal. Similarly, as customers of other service providers, besides the mobile network, we are all confronted with the same conundrum; what do we have to show for our years of loyalty?

Our service providers should ask themselves, What are the needs of my loyal customers? What excites them and what will motivate them to keep buying? Mind you, every service provider or business owner must ask these important questions because understanding your customer means understanding their values and sense of worth. This is important since you need to keep your loyal customers extra loyal. Depending on your industry, you need to know who you call your “customer.” How do you do this?

You need to research! To talk to your customer and find out what he/ she needs from you. Qualitative research is the key to solving this puzzle because it answers the “Why’s”, “How’s”, “Where’s”, “When’s” and “Who’s” of what your customers want. This involves Focus Group Discussions (FGDs), In-Depth Interviews (IDIs) or In Home Visits (IHVs).

Around the world, especially with the Fortune 500 companies, thousands of businesses devote a huge proportion of their annual budgets to Research & Development (R&D).Whether it is a new product introduction or rebranding of an already existing one, or introduction of a customer loyalty programme, such global firms always talk to the customer because they want to stand the best chance of success under these tough market conditions. And that’s why they are able to produce those sterling results in billions of dollars ($$$$) year-on-year.

 In Ghana, very few people appreciate the value research adds to business. There is a lot of reliance on hearsay, perceptions or the inside-out approach where businesses determine what’s best for their customers without the customer’s involvement.

As a researcher, I have come to understand that it is easy for any company to offer promotional coupons and discount codes, but businesses that can provide value to the customer in ways other than loyalty points or pesewas have an opportunity to really connect with their audience. So the next time you think of implementing a loyalty programme, stop for a second and ask yourself; what are the needs of my customers? Be sure you’ve researched and designed an in-depth customer persona, and then you will be sure of success.