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.
Dig Deeper on Customer loyalty and retention
Related Q&A from Michael Lowenstein, VP and Senior Consultant, Customer Loyalty Management, Harris Interactive
Find out if luxury retail stores should offer loyalty programs for their customers in this tip. Learn how some luxury retail brands build loyal ...continue reading
Get an experts take on raising the hurdle rates of a customer loyalty program and learn more about value-added benefits from Michael Lowenstein.continue reading
Learn a few ways to measure customer loyalty and find out about customer spend or "share of wallet," which expert Michael Lowenstein believes to be ...continue reading
Have a question for an expert?
Please add a title for your question
Get answers from a TechTarget expert on whatever's puzzling you.