360° Coverage : Are You Earning Customer Loyalty Or Are You Buying It?

2 Updates

Are You Earning Customer Loyalty Or Are You Buying It?

May 7 2014, 3:45pm CDT | by

We can all agree that having loyal customers is fundamental to the long-term success of a business. However, there have been numerous studies that have been done that show that loyalty amongst...

Filed under: news

 
 
 

19 weeks ago

Are You Earning Customer Loyalty Or Are You Buying It?

May 7 2014, 3:45pm CDT | by

We can all agree that having loyal customers is fundamental to the long-term success of a business. However, there have been numerous studies that have been done that show that loyalty amongst customers is decreasing.

One such study by research company fast.MAP in late 2013 reported that:

  • 20% of consumers will switch loyalties if offered a better loyalty programme by a competitor brand;
  • 33% use loyalty programmes to try out and buy from brands they wouldn’t normally use; and
  • 96% of consumers would be tempted to switch loyalties to a competitor by a good price promotion;

Given these statistics, it’s clear that having a ‘loyalty programme’ is no guarantee that your customers will remain loyal.

In these cases, loyalty programmes are nothing more than bribes.

Sure, people like things for free. Or, more for less. Who doesn’t?

The challenge is that many loyalty programmes are not delivering customer loyalty.

So, if everyone is trying to out discount and out ‘loyalty’ programme everyone else, what happens when you can’t discount or out do your competitors anymore? What are you left with?

Nothing? Or, at best, a commodity based business? Who wants that?

Therefore, if we really want to foster loyalty from our customers, don’t we need to re-examine what loyalty and being loyal really means?

Loyalty, according to the Oxford English Dictionary, is the ‘quality of being loyal’ and loyal is ‘giving or showing firm and constant support or allegiance to a person or institution’.

From these definitions, would you say that a loyalty programme is a good way to foster true loyalty?

No?

So, what to do?

Well, rather than giving up on customer loyalty, perhaps it’s time to re-examine what loyalty really means and what it takes to foster real loyalty.

Experience and history shows that loyalty can be bought. However, it also shows that loyalty that is earned is much more robust, powerful and sustainable.

Therefore, if we want our customers to be loyal to us then do we not have to first take a look at ourselves? After all, don’t we align ourselves with people and things that are like us or embody what we want to be like?

Loyalty that is earned has a number of elements to it, including:/>/>

  1. Having a shared cause or interests that are aligned;
  2. Doing what you say you are going to do when you say you are going to do it;
  3. Showing up regularly;
  4. Being able to forgive when someone makes a mistake;
  5. But, also being willing to punish someone when an error is made;
  6. Admitting when you are wrong and then apologising; and
  7. Always acting in the best interests of the people whose loyalty you are trying to earn.

There may be more elements but how many do you have in your business?

We cannot force a customer to be loyal to us. But, if we would like to earn rather than buy their loyalty, we, first, we have to become the person or the business that people would want to be loyal to.

 
Update
2

2 weeks ago

Khazanah throws MAS RM6b lifeline

Aug 29 2014 5:01pm CDT | Source: Business Times Singapore

August 30, 2014 1:15 AMKHAZANAH Nasional will inject RM6 billion (SS$2.4 billion) over three years to resuscitate loss-making Malaysia Airlines (MAS) under a recovery plan that includes even an Act of Parliament. Other key moves are migrating its operations, assets and liabilities to a new company (NewCo) and slashing the ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 
Update
1

3 weeks ago

MAS posts loss of RM307m for Q2

Aug 28 2014 5:00pm CDT | Source: Business Times Singapore

August 29, 2014 1:13 AMMALAYSIA Airlines (MAS) registered a loss of RM307 million (S$122 million) for the second quarter to end-June, but warned of worse to come in the second half when the "full financial impact of th ...
Source: Business Times Singapore   Full article at: Business Times Singapore
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Ebola hit countries to lose $809 million by 2015: World Bank
This projected loss will be the medium-term impact of the outbreak of the Ebola Virus Disease (EVD) on these countries, Xinhua reported.
 
 
Russian food ban deals blow to Austrian pork farmers
Vienna, Sep 19 (IANS) Russian import ban imposed in retaliation for Western sanctions over the Ukraine crisis brought down the price of pork in Austria, affecting the farmers in the country.
 
 
Russia seeks to keep out foreigners from media business
Moscow, Sep 18 (IANS) Russia will soon introduce a bill in parliament to restrict foreign ownership in Russian media, a media report said Thursday.
 
 
France to help set up hospital in Guinea to fight Ebola
Paris, Sep 18 (IANS) French President Francois Hollande Thursday said his country would help set up a military hospital in Guinea to assist in the fight against the deadly Ebola virus in west Africa.
 
 
 

Latest from the Network

13 killed in bomb attacks in Iraq
Baghdad, Sep 19 (IANS) At least 13 people were killed in two suicide bomb attacks in the Iraqi capital of Baghdad Thursday evening, a police source said. A suicide bomber drove an explosive-laden car into a checkpoint...
Read more on Politics Balla
 
Scottish referendum polls end, huge turnout reported
London, Sep 19 (IANS) Polling in the referendum to decide whether Scotland should stay in the UK or become an independent country have closed and counting is under way, BBC reported. Counting will be carried out...
Read more on Politics Balla
 
Parliamentarians urges EU to cut off IS resources
Brussels, Sep 19 (IANS) The European Parliament Thursday urged the European Union (EU) to enforce sanctions against business bodies related to the Islamic State (IS) in a bid to cut off its resources. The creation and...
Read more on Politics Balla
 
Sharon Osbourne slit her wrist to prove love
Los Angeles, Sep 19 (IANS) TV host Sharon Osbourne says, back in her rocker girl days, she slit her wrist to prove her love for Ozzy Osbourne. The 61-year-old star has revealed she was hospitalised after cutting...
Read more on Celebrity Balla
 
Ebola hit countries to lose $809 million by 2015: World Bank
This projected loss will be the medium-term impact of the outbreak of the Ebola Virus Disease (EVD) on these countries, Xinhua reported. A statement issued from the World Bank's Ghana office responsible for both...
Read more on Business Balla
 
Russian food ban deals blow to Austrian pork farmers
Vienna, Sep 19 (IANS) Russian import ban imposed in retaliation for Western sanctions over the Ukraine crisis brought down the price of pork in Austria, affecting the farmers in the country. Alarm is growing among...
Read more on Business Balla
 
Nigerian troops capture Boko Haram leader
Abuja, Sep 19 (IANS) Nigeria army have arrested a senior commander of the Boko Haram sect, which is blamed for killing hundreds of people since 2009, the country's defence authority said Thursday. The commander, whose...
Read more on Politics Balla
 
Iggy Azalea sues ex-boyfriend
Los Angeles, Sep 19 (IANS) Rapper Iggy Azalea has filed a lawsuit against her ex-boyfriend. Azalea is suing her ex-lover Maurice Williams for releasing music from her early career without her consent, reports...
Read more on Celebrity Balla
 
Will Smith and Jada Pinkett Smith have garden dates
Will Smith and Jada Pinkett Smith prefer to have date nights at home. The couple, who got married in 1997, believe it's important to spend some time alone with one another in order to keep their romance alive, but they...
Read more on Celebrity Balla
 
Kylie Jenner 'living in shadows' of sister Kendall
Kylie Jenner reportedly feels she's ''living in the shadows'' of her sister Kendall. The 17-year-old star is allegedly starting to feel left out following her older sibling's recent modeling success and believes she's...
Read more on Celebrity Balla