Earlier this year, Marriott International, Hilton, InterContinental Hotels Group, Starwood and Delta – among others – effectively devalued their customer loyalty programs. They now require more points, and sometimes more cash, in order to obtain a reward room.
As a result, customers have reacted negatively. Surprised?
Consumers view loyalty rewards as ‘bought’ or ‘earned.’ Certainly, not a reward. And, companies are increasingly analyzing the return on such programs and determining the investment is not there. So, they reduce the benefits and their customers become more disenfranchised. Exactly the opposite reaction desired of a ‘reward.’
Zealotry Marketing flips the concept of loyalty. Instead of discounts or rewards following frequent purchases, consider the benefits of engaging the consumer in more collaborative, meaningful and personalized ways that enrich their experience and deepen their understanding of your brand. Examples? Tastings; behind the scenes tours; exclusive seminars/discussions; advance previews; sampling; private communities.
Savvy media types have long understood the value of “advance staging” – of cultivating a smaller, but fervent group to ‘leak news’ and be positive ‘plants in the audience.’
Delight your Zealots in advance, instead of trying to buy their continued loyalty. The investment is less and the return is greater.