3 ways to drive customer loyalty

There is no such thing as loyalty.

Consumers have so much choice being marketed to them so often, that everyone is for sale.

A new airline, a new streaming service, a new car, or in business a new email marketing tool or a new HR platform - there is always another option to consider.

But that doesn’t mean we shouldn’t strive for driving customer loyalty, and trying to build a deeper relationship with our customers beyond the transaction.

That loyalty might add months to our average customer lifetime, or it might increase the percentage of customers buy an additional product or that refer in a friend - all valuable outcomes.

Let’s start with what doesn’t drive loyalty.

Discounts don’t work

If you get a pay rise - you are happy. But the following month, your expectations have normalised to the new amount, so you don’t feel the boost moving forward.

Its the same with discounts. If a vendor offers you 20% off, you set your expectations to that level and no longer feel any benefit.

When a phone company, airline or holiday company offers a discount it merges into all the other discounts offered by other companies trying to entice you away.

It doesn’t drive loyalty.

So what can we use?

Access

As humans we love having something that other people don’t have.

Airline loyalty programs provide access to airport lounges around the world.

Registration desks, a warm welcome, a guest allowed - and in you go, away from the madness of the terminal into a calm space with plentiful food and drink to relax before your flight.

The BA Galleries Lounge in Singapore

Travellers strive to achieve and then maintain the correct level in the loyalty program and retain their access.

Members spend a lot of time talking about their access - after all, what’s the point of having it if everyone that doesn’t have access doesn’t know about it.

Other types of access can be backstage passes, access to senior executives, access to private dinners and events.

What access can you provide to your customers that money can’t buy?

Priority

Getting your hands on something before anyone else is another built-in human trait.

Some people will queue overnight to get their hands on a new iPhone or gaming console. People will pay a deposit years in advance for a new Tesla to have it on launch day.

In airline loyalty programs they board passengers by their tiers - gold, then silver, then bronze - then…..the public!

They’ve identified that even though most people would rather be on the plane the least amount of time - if it involves being seen as priority they will rush to the front!

Other examples would be providing loyal customers with earlier availability to purchase tickets or products.

In the UK the phone company O2 provides priority tickets to music concerts before they go on sale to the general public.

O2 provide priority ticket purchase and event access.

Kudos

You are sat in a company meeting. The CEO starts talking about how the team have really pulled together this quarter. But one individual has really gone above and beyond.

This individual came up with a really innovative solution to a customer problem…..

Suddenly you realise it is you - and whilst some people may not revel in the spotlight, for most it is a fantastic feeling to be recognised and have your story told amongst the wider group.

It is the same for customers.

We are all human, and to have your personal work recognised and promoted in the community cements your relationship with that brand.

Salesforce’s Trailblazer program is a good example of this. They have combined an individual’s learning, credentials and engagement in the community to create a select group of Trailblazers.

Trailblazers are put on a pedestal by Salesforce

They give them branded hoodies, they get their photos visible on the website, and at Salesforce in-person events they put up massive posters promoting the individuals.

The Trailblazers walk around in their Trailblazer hoodies feeling like they are 10 feet tall.

Kudos is valuable and drives loyalty when done right.

Loyalty pays - but is not quick or cheap

Access, Priority and Kudos - easy ideas, but as you see from the examples shared, these are multi-year strategic investments, along the lines of launching a new product.

Consider the investment in time, people, process and systems that goes into an airline loyalty program - it is not a tactical play.

So if you want to drive loyalty, you need to really drive loyalty, and create something that your customer is proud to be a member of and would feel upset if they lost it.


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