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What Drives YOUR Loyalty? | Tell Us How Customer Rewards Should Improve!

According to a Research Brief article by Jack Loechner, titled “Loyalty Programs Need to Engage“, a recent study has revealed that “both customers and marketers agree that deeper engagement and personalized contact drives loyalty”, and that “marketers are mostly inducing loyalty with discounts or free products and premiums rather than quicker, better service or improved customer handling”.

How do you feel about this?  Many companies are beginning to offer discounts, coupons, or special offers to their loyal customers…but how many of those companies are actually trying to step up their customer service as well?  I don’t know about you, but I don’t think that discounted prices should EVER be a replacement for quality service!

Jack Loechner’s article also mentions the following statistics in regard to customer loyalty programs:

  • 79% of consumers surveyed say they are very, or pretty, satisfied with their loyalty and rewards program experiences
  • 70% want to see more discounts and savings
  • 52% want more compelling personal deals and offers as reward for steering their business to loyalty program operators
  • 58% say they want more compelling personal benefits and services, as well as more relevant offers or individualized deals

It seems that the 58% who would like more individualized deals are on to something.  It doesn’t seem very personalized to send out the same reward offer to every customer, does it?  If more companies had knowledgeable staff to make personal recommendations or to give out exclusive offers, then maybe it would make more of an impact on customers.  On the other hand, depending on the size of the business and the size of its staff, it can be difficult to tailor rewards programs to that extent.

What do YOU think about customer loyalty programs?  Are they worth it, or are they lacking in some way?  Do any of the facts or statistics from Jack Loechner’s article shock you?  Tell us about your experiences – we’d LOVE to hear from you!  Thanks for reading the Quality Logo Products blog!



Jill Tooley

Jill has been obsessed with words since her fingers could turn the pages of a book. She’s a hopeless bibliophile who recently purchased a Kindle after almost 6 years of radical opposition, and she loves stumbling upon new music on Pandora. Random interests include (but are not limited to) bookstores, movie memorabilia, and adorable rodents. Jill writes for the QLP blog and assists with the company’s social media accounts. You can connect with Jill on Google+.

Comments

  1. Barb Miller

    Hey Jill, thanks for another thought-provoking article. I think you are right on about individualizing the rewards/incentives for your customers, and we try very hard to do that. Before the first of the year we talk to our distributors to find out what is important to them in terms of benefits. We then try to tailor their benefit package to their needs. And some of our incentives that we offer to distributors are driven by their loyalty. For example, give Quality Logo things that others don’t get. We love our relationship and we want to keep it going. I think it can only be done by finding out what your individual needs are. That’s not to say other distributors are not important and don’t get special incentives – the are and they do. And that is the point of your whole blog: individualize the reward to continue to develop the partnership. Amen, Jill!

    • QLP Jill

      Thanks, Barb! It sounds like you’re doing everything the RIGHT way (but we already knew that from working with you! ;). I agree that discovering individual needs is ideal in order to accomplish true customer satisfaction, and it’s a shame that more businesses aren’t doing that for their customers. I honestly think that many companies think: “Okay, I’ve got the initial sale, so my work is done”…and that’s where they’re wrong!

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