In recent years, there have been a large number of brands that have announced their entry into the world of loyalty. And let’s not confuse loyalty for loyalty programs, which is the first thing most people think of: points, cash-back, rewards, etc…Although it is an element, it is not everything. It is only a part of the wide world of loyalty.
The era of loyalty has to gather several necessary components to be able to achieve it. In most cases, brands minimize what loyalty is. It is thought that by requesting emails at the time of payment to then send irrelevant messages, handing out stamp cards without control at the point of sale to seek to generate subsequent visits, giving massive discounts to customers who are not frequent (nor will they be), 2×1 promotions, points programs, among other poorly articulated initiatives, are misunderstood as loyalty.
The ultimate goal of a loyalty strategy is to acknowledge customers by thanking them for their preference. It is to generate an infatuation in the brand so that they remain for a long time. To achieve this, you need to understand the customer. Put it at the center of the entire strategy. The entire organization must revolve around them. From the CEO to the lowest ranking position within the organization. All lined up and wearing the client’s shoes at all times.
Fortunately, this customer-based thinking is on a growing trend; If we go back to the 80’s or 90’s, organizations were “centric product”. Everything revolved around the product. Production efficiencies, cost reduction, improvement in production lines, better packaging, etc. Today that thought is obsolete. To generate loyalty today you must think about customers. But this is not all.
To generate long-term loyalty, the following conditions must be met:
- Organizational culture: Few organizations think about this. It is the first necessary and fundamental step to generate loyal customers. It all starts from within the organization: with customer-centricity at all levels. The vision, purpose and values must have the customer in mind. If this does not exist, in the end everything will remain in good wishes.
- Processes designed for the client, not for the organization: Easy, right? In reality, the minority of organizations that have customer-oriented processes. Most establish their processes thinking inside, to comply with policies, controls, mistrust of employees, etc.
- Innovation and user experience: development of products and services with the customer in mind; thinking about improving people’s lives, providing them with a benefit or solving a problem. Brands that think about how the customer can interact with the product or service in an easy, intuitive way, generating a pleasant experience.
- Responsible use of data: Brands that responsibly request consumer data and return in return a richer, personalized value proposition with relevant benefits, make the customer appreciate and trust that their data is safe and generating value. The use of customer data to generate greater knowledge with a single purpose: to thank the customer for their preference through personal and relevant benefits.
- Humbly listening to the voice of the customer: How many brands sincerely listen to the voice of the customer to correct or modify discomfort or pain that the same consumer expresses to them? Many times I think that the measurement of the NPS starts from an egocentric need of the organizations to know how they are doing, but few do it sincerely to detect and correct the opportunities that the clients themselves express.
There may be more conditions, surely yes. In my opinion, these can be a good start to focus the entire organization to establish solid foundations in order to achieve loyal customers. If the organization executes the previous conditions well, accompanied by other mechanisms such as loyalty programs, recognition strategies, benefits, personalized discounts, etc. you will surely go on the right path.