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The Problem With Loyalty Programs

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From eMarketer : Consumers like loyalty programs, but they have complaints. A major one is the hassle of accessing rewards. In a February 2018 survey from mobile coupon solution provider CodeBroker, some 54% of US loyalty program members said it’s frustrating when programs can’t be easily accessed on smartphones or when an app download is required. More than five in 10 respondents agreed that without easily accessible programs, rewards often go unused or expire because members aren’t aware they’ve accrued. Of those polled, 37% prefer accessing loyalty program information, such as balance or redemption details, via a periodic text message. Some 28% rely on a mobile app.

Customer loyalty is not about the customer

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From Verizon : For every action, there is an equal and opposite reaction. Newton’s Third Law of Motion As a college student, I majored in physics where the Laws of Motion and the Laws of Thermodynamics provided a reliable framework for explaining how things work. With a basic understanding of these laws, one can make reasonable predictions about the behavior of things in the everyday world. Who knew, though, that these laws could also be relevant in explaining behavior in the world of a customer experience professional? The behavior of most interest to businesses in today’s digital economy is customer loyalty. They talk about it in employee webcasts. They track it on social media. They report on it in scorecards with metrics like churn, repeat purchases, and average revenue per user (ARPU). And in doing so, they completely miss the point. To put it in Newton’s parlance, loyalty is not an action, but a reaction.