According to recent surveys, 1.8 billion loyalty-program memberships exist in the United States. The average household participates in 14.1 of these programs. Yet, more than half of these memberships are inactive, meaning the customer has stopped paying attention to the program, and possibly the brand itself.
A thought to consider? Loyalty is a company or brand COST of doing business, not an elective on the part of your customer. From our viewpoint, companies build products, programs and service deliveries that create loyalty. In turn, the customers who are most delighted become Zealots.
In traditional marketing parlance, loyalty is earned by the customer. The customers who buy your product or service most often are rewarded with discounts of some kind.
In our world of Zealotry Marketing, loyalty is demonstrated and earned by the business. The result is customers who are passionate about your business and who willingly exhibit zealotry actions. The reward is not loyalty. The reward is customers singing your praises – in reviews, in social media, in referral and in return sales.
Customer -> repeated purchase -> receives discount or rebate
Marketing focused on the right targets and messaging -> Business delivers experience -> customers are delighted -> the customer rewards the business through zealotry actions
Brands are profoundly vulnerable to social media. Loyalties can shift fast, as communities rally behind or against brands. Brands must be monitoring, influencing and promoting themselves in social forums, including your own company’s Twitter or Facebook pages, etc. to ensure that social channels help, and not hurt.