Points don’t make for loyalty prizes
All this month we’ve provided a focus on brand loyalty and rethinking the tired market of loyalty cards and schemes. Naturally, this culminates with the notion of abandoning a points structure entirely.
Bare with us though, this isn’t as difficult or unconventional as it first seems.
For years customers have shopped in stores and returned time and time again when the only incentive to do so was that they enjoyed the service they were given, the quality of goods that the purchased, and the price they paid.
Fast forward to 2014, and only now are we starting to get around to bringing that experience back into stores. For too long the idea of customer loyalty has come from driving them to collect things for measly rewards. Now though, brands are realising that they have to provide customers with worthwhile experiences.
But how, exactly, do you do that?
According to McKinsey & Company’s research, US stores without loyalty programmes actually grew by 4.26 per cent, compared to a 2.28 per cent growth in those that did have a loyalty offering.
It’s a sign that businesses aren’t creating loyalty programmes customers want to engage with. Every company says its customer centric, but in the end it seems that it’s all faux.
So who’s doing it well already then?
Well, here’s four examples of companies who have chucked the whole points malarkey in and are focusing directly on what the customer wants.
If you can think of any other loyalty schemes out there that don’t utilise points or stamps, let us know in the comments below.