Q

Creating customer loyalty

Can you suggest some innovative schemes that can increase customer loyalty in consumer durables?

The concept of 'schemes' is rather off-putting, because it always suggests something done by the marketer to have the appearance of benefit without actually delivering it. If you are looking at programs designed to increase perceived customer value, the first thing to determine is what, of potential alternative elements considered, will most drive customer loyalty. Typically, this results in a multi-element program in which price is a minor player. If price is a key feature, the loyalty program will tend to become commoditized, and non-differentiated from competition. We have seen several highly innovative, value-based programs for consumer durables (by automotive dealerships, for example), including clubs, targeted communication vehicles, customized rewards, unique affinity cards, etc.; however, it wouldn't be appropriate to get into specifics because each product and each market situation will require its own solution.

Our company has developed a process, or protocol, for helping clients define program components and elements, and then dimensionalize/prioritize their potential effectiveness before a final loyalty program is introduced. It can also be applied to program modification. If you'd like to know more, please feel free to contact me.

 

For more information, check out searchCRM's Best Web Links on Customer Loyalty.


 

This was first published in June 2001

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