How to Make Your Brand Deserving of Customer Loyalty
by Steve Cuno at delivermagazine.com
Ethan knew how to propose. On a trip to the Serengeti, his back to a spectacular sunset, he knelt before Jessica, produced a lovely ring and begged for her hand. So it was that one of my shop’s best employees returned from her vacation engaged.
Of course, Ethan could have skipped the whole Serengeti sunset thing and simply sent Jessica a card that said, “Because we appreciate your being a valued significant other …”
If that fails to offend your inner incurable romantic, you may have a promising career with a company that mistakes sending mail to “valued customers like you” for loyalty marketing. For the rest of you, here are some tips.
Something odd happens when marketers try to create loyal customer relationships. Namely, they forget everything they know about loyalty and relationships. You earn personal friends by treating people well, being reliable, telling the truth and keeping promises — not by wearing a tagline that says, “Because we care,” awarding points toward merchandise or offering rebates for a two-year contract. Taglines, rewards and contracts have their place, but a business that wants genuine loyalty should first take a look at its practices.
Nothing says “lazy copywriter” like “valued customer.” Banish that term from your marketing lexicon. Use your creativity to show, not tell, customers that they matter.
Warm and fuzzy is a good start. A sincere “thank you” in the mail is a welcome surprise. Be sure it doesn’t appear mass produced, even if it is. Print it on your personal letterhead (“monarch” size makes a nice impression), address the customer by name, use a stamp (no indicia in this case) and add your signature in blue.
Beyond warm and fuzzy. To keep succeeding notes fresh, enclose something of value. Free merchandise is good. On the less costly side, you can enclose article reprints (be sure to obtain the rights), press releases (“I want you to hear this from me before you see it in the paper”), offers of better-than-advertised deals, smart shopping tips and so on.
Privileges motivate. There’s nothing quite so heady as knowing you have a privilege that others don’t have. You might provide your best customers a straight-to-the-CEO e-mail address, spare them a wait in line, reserve them the best parking spaces … your imagination is the limit.
Know the difference between loyalty and frequency. This is loyalty: when it’s safer to broach religion or politics than to tell a devotee of a certain motorcycle (hint: rhymes with barley) that another brand is as good.Frequency, which is easier to measure, may or may not indicate loyalty. For instance, a frequent customer may only be a coupon-surfer — easy prey for the first competitor who undercuts you.
Rewards programs can build frequency and profitability. Two cautions are in order: (1) There are limits to the number of programs in which people will participate. (2) They’re trickier than they look. A homemade program could end up costing you money and embarrassment. Before you get too far, consult with one or more pros.
A good loyalty program pays for itself. Whether yours is a complex rewards system or a simple thank-you note program, maintain a control group that resembles your loyalty group. If the loyalty group produces more revenue than the control, chances are your program is working.
So, is loyalty for you? Loyalty marketing is based on the idea that selling to established customers costs less than creating new customers. This is often true, but not always. Before you invest in a loyalty program, be sure your company will truly benefit from having one. Not every relationship requires a Serengeti sunset.
Steve Cuno, a LOYAL contributor to Deliver, heads the RESPONSE Agency in Salt Lake City. He is the author of the book Prove It Before You Promote It and a popular speaker for the Direct Marketing Association, American Advertising Federation, James Randi Educational Foundation and others. E-mail him at steve@responseagency.com.
