So basically what we are looking for now is the capability that goes much further. Instead of just rewarding a...
customer to do this transaction with me today, I want to reward him instead for giving me the information -- perhaps it's just giving me his identity so I can link it with a shopping cart, or letting me know that he's flying me again -- so that I can find out something about him that I wouldn't known otherwise. And I'm rewarding him for giving me that information and linking his identity to the info I have about him. And then I use that information to do something for him that nobody else could do.
For example, a frequent flier program could send me information offering me special deals allowing me to bring a member of my family with me, which would be valuable to me. Or they could let me know about a special deal on a route that they know I'd actually like to use. It drives me nuts when they send me an email and it offers me special prices on routes I'm never going to take. What good is that to me? That just took up my time for nothing.
So what we really want to do is use a loyalty program to gather information about each customer, mass-customize communication and offers to those customers, and then really entice genuine loyalty from those customers who are now getting greater value from us than they can get from competitors who don't know what we know, and they get greater value from us than from other customers do whom we don't know as much about as we know about this customer.
Hear more in Creating Customer Value, a SearchCRM.com monthly podcast series with Peppers and Rogers.
Dig Deeper on Marketing management and strategy
Related Q&A from Don Peppers
How can you determine the cost of keeping a customer who is threatening to leave? Learn methods for calculating customer profitability for one ... Continue Reading
You can establish call center metrics that encourage agents to build customer satisfaction while also improving profitability. Learn how in this ... Continue Reading
Learn the pros and cons of using click- to-call vs. click-to-chat software and find out which is best for reducing costs and improving the customer ... 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.