Your loyalty member: CRM strategist or promiscuous consumer?

Do we, as marketers, business owners, loyalty experts, forget to view our customers of our loyalty programmes just as they are…customers? 

Definition of a customer: “A party that receives or consumes products (goods or services) and has the ability to choose between different products and suppliers”*

Looking at the first part of this definition, “A party that receives or consumes products (goods or services)", you are reminded about how little you understand about your customer other than that they chose you to “receive or consume products” from.  Only after a thorough data analysis do you begin to define this type of customer a lot better (shopping habits, frequency, basket size, preferences etc.). However, without delving into too much detail about data and how to use it (read the Iceberg effect), I’d like to touch on one of the fundamental reasons why we find your customers are not redeeming the full benefits of your programme and in turn, losing interest in your programme.

Being in the loyalty industry, I am the owner of over 35 loyalty cards. I know this collection is more than what the average person would possess but the rate at which loyalty is growing in South Africa, the man on the street will soon start (or has started) to compete with my collection.

I also know I redeem way more than my peers by studying, interacting & fully “exploiting” the full benefits of these programmes as part of my day to day job. There may only be a very small percentage of us like minded loyalty folk out there…but what about our customers that do not have the same level of interest, time or patience to investigate how to reap the full benefits of a programme? How do you get them to find your programme worth while?

As mentioned above, the loyalty industry in South Africa is quickly catching up with the global loyalty landscape and with so many companies entering the loyalty playing field it is critical for one to realise this fact about your members and help them get the best out of your programme so that you become their first choice when it comes to choosing which card, of many, to use. Your customers, as defined above, have the “ability to choose between different products and suppliers” so give them reason to choose you, first.

·         Keep your loyalty programme simple, understandable and easy to use.

·         There is a serious lack of consistent communication about HOW to earn redeem.  All we seem to be communicated about is WHAT you can earn. Encourage ways for them to earn & redeem rewards faster.

·         Have a communication strategy that consistently informs your members on how to earn the broader benefits of your programme and this communication must be delivered in such a manner that is easily understood by your customers.

·         Make rewards obtainable – do not make your member feel that the rewards are out of reach.

·         This is just a smattering of considerations….there are so many more in a comprehensive list. 

It is time to stop assuming they (your customers) are members around your boardroom table but are normal people who promiscuously choose difference brands at different times. 

Ros Siddle, Marketing & Loyalty Research Manager, Truth

*definition of customer, source: www.businessdictionary.com