The value of customer loyalty – Should companies ditch their loyalty programs?

Here’s a great blog post from Mike Anthony again, about loyalty schemes after BA announced that for those not using business class you will actually get less miles for your miles. Mike makes some great points, but from one perspective surely a loyalty card is part of your brand. If you invest in your brand you need to invest in your loyalty card. In my experience it requires an ongoing investment and as soon as there’s that feeling of ‘not made here’ it is doomed to eventual failure.

He also raises points from another loyalty card with a sinking feeling – the Tesco Clubcard. Here my point is about data. Data gives you historical information and like research is out of date as soon as you have it in your hands. I can certainly understand the excitement of having so much data available to you and the endless possibilities for a marketer, but it’s like fool’s gold – once you make it an obsession it becomes worthless. And so Tesco managed to see the iceberg of change too late.

The value of customer loyalty – Should companies ditch their loyalty programs?.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s