Customer Loyalty

“Lasting loyalty is underpinned by the customer experience - so from start to finish, it is critical that brands meet consumers’ needs. But true loyalty needs to be earned, not forced and that is where many brands are currently at the top of a slippery slope. We are currently seeing a shift from a points-based reward system to membership offering reduced pricing at the point of purchase. This forces customers to join and become ‘loyal’ so that they can access products at promotional prices. It is becoming a necessity rather than a choice, which has a knock-on impact on the customer experience and scuppers the ability to build long-term, authentic, two-way relationships, relying merely on pricing to keep customers coming back. While it may be popular, moving to an app-only loyalty system could also be bad for business, as it alienates and excludes some customer groups. Those who do not have a smartphone or know how to use one - typically vulnerable consumers - are not able to access the same deals as smartphone savvy shoppers. This level of digital ageism and ableism is not inclusive or conducive to loyalty. In addition, the growing trend for ‘dumb devices’ amongst younger consumers who are avoiding digital noise is creating another new segment who would not be able to benefit from an apponly loyalty programme. Brands should offer everyone the same experience of loyalty, however they choose to engage. Giving customers options is crucial for building lasting customer loyalty, whether via a loyalty programme or through their browsing and purchasing interactions. Providing choices ensures that customers feel heard, seen and understood, building much stronger long-term relationships. Instead of forcing loyalty, give consumers a reason to keep coming back and avoid digital exclusion that will eventually see them abandon your brand in favour of others.” - Daniel Todaro, CEO at Gekko Group

To read Daniel Todaro's, CEO at Gekko Group Comment, please visit A1 Retail Magazine