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Customer Behaviour

Recent research suggests that some of Britain’s successful super brands are falling out of favour among consumers. This proves that even the most popular brands need to monitor what their customers really want and deliver this, and more, to ensure loyal brand advocates stick around for the long term and aren’t tempted away by rival brands.

In today’s competitive environment, brands that have been forefront of our minds simply because of who they are can no longer rely on their name to keep hold of loyal customers. As price and service wars become the norm, brands need to focus on how to keep existing customers happy throughout the relationship rather than when they have already decided to jump ship.

 

Ensure programmes are carefully targeted

Both new and existing customer bases should be taken into account when considering a reward scheme. Some programmes take a basic ‘compensation’ approach to loyalty, which may be with good intentions and motivated by a pure desire to say thank you. However, every promotion or programme has the potential to alienate the most loyal customer if their needs and values aren’t targeted and carefully considered.

The loyalty scheme in place should firstly satisfy the customers that regularly flock to your doors, before reaching out to entice a whole new wave of potential consumers that may or may not stick around. By carefully targeting a scheme at the planning stages brands can ensure that they won’t be left firefighting as a result of creating a programme which may not meet the original objective.

Keep the programme fresh

By being a loyal customer it means that the same loyalty programme is in constant use, so it is not surprising that customers tend to quickly get used to them. To prevent disengagement and boredom, it is important that a reward scheme does not become too familiar.

Customers can also, over time, begin to view loyalty rewards as an entitlement rather than a gift.  This can be avoided by regularly refreshing or enhancing a programme, bringing in topical hooks or new product launches, to ensure there is always something new and personalised to please and engage the customer.

Add the element of surprise

Providing a reward that a customer isn’t expecting can be a very powerful tool, especially with prices rising. The element of surprise is key – giving customers an additional incentive, such as enhanced service or a free gift, to stay with a provider. From this, the perceived value and memorability of the company can be amplified.

 

Ian Horsham is Divisional Director for Promotions and Incentives at The Grass Roots Group

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