Are customers loyal to your brand or to your points?

120109.loyalty1

I found the following observation by Niraj Dawar very instructive.  Please note particularly:

“From a brand manager’s perspective, the question is what is a consumer loyal to — are they loyal to the brand that you’re selling or are they loyal to the points? If they’re loyal to the points the moment you stop those points your product will stop selling,” Dawar cautions. “Or the moment a competitor offers an equivalent amount of points on a slightly different program, the consumer will switch.”

There’s a better way to attract customers, he says. Companies that can make product “easier to buy, easier to find, easier learn how to use and then eventually dispose,” tend to retain its customer base for longer periods of time, Dawar says.

“It’s in the interaction. It’s in how the customer buys rather than what we sell them,” he adds.

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About Arie Goldshlager

Customer Insight, Customer Strategy, and Innovation Consultant
This entry was posted in Customer Loyalty. Bookmark the permalink.

2 Responses to Are customers loyal to your brand or to your points?

  1. Wim Rampen says:

    Hi Arie,

    I think we had an exchange on Twitter the other day concluding it’s hardly ever ‘either – or’.. It’s in the mix.

    I think that applies here too.

    Although I do agree it is likely more effective to make anything (not just buying!) a lot easier. That would likely also include redeeming your points 😉

    Wim

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