The “Legends of Loyalty” on the future of #customerengagement
At today’s Loyalty World conference some of the world’s leading experts in customer loyalty came together to discuss the past, present and future of customer engagement.
David Johnston, President and CEO Europe at AIMIA, Richard Baker, former CEO, Alliance Boots, Chairman DFS, AIMIA and Virgin Active, Terry Hunt, President of The Institute of Direct Marketing, Co-Author of Scoring Points and Founder of Customer & Co discussed the launch of the Tesco Clubcard and how it sent the entire food retailing industry into disarray. Some of their competitors immediately launched their own schemes but they didn’t really understand what it was they were doing. Asda on the other hand chose to be the cheapest. But there can only be one company that is cheapest, so their competitors needed to find other points of difference. This is where loyalty schemes can add value.
Loyalty programs are neither perfect nor flawed, it is about what your business objectives are and how you use them to reach your customers. Customers simply want companies to say to them thank you for your business, we appreciate you. In today’s technological world it is easy to lose sight of that. It is important for a loyalty scheme to reward customers for the purchases they make with something of value to them. In effect, loyalty schemes are a means of writing a contract between a customer and company, and with any contract there has to be value in it for both parties. But how do we put that into practice?
How do you make a difference to loyalty?
Terry – promote the idea of your company having a customer plan – enterprise wide, things to do, financials and KPIs, presented to shareholders as a means of measuring your business. Your loyalty scheme can form part of this.
What are the biggest mistakes being made in the loyalty industry
Richard – In marketing generally we are still spending the largest proportion of our money chasing customers we haven’t got and we should be spending more of that retaining our existing customers.
Times are tough at the moment with the current recession – where is the next big opportunity?
Technology is the enabler. What goes on in customers’ heads provides both the biggest opportunity and threat. Families are entrenching, seeing income threatened with increasing fuel costs. Families are under seige, so understanding how your company can be a useful contribution for them. How can we be more useful in the fundamental affordability of life?
Convenience is now being able to buy from the comfort of your own home. The companies that will win will be those that are brilliant at transferring their service online.
Are you implementing this in your company?
