The 3 Biggest Lessons I have Learned about Loyalty Marketing

My name is Matt and I am new here at the re:member group where we are building customer loyalty one valuable client at a time. In my first month here I have learned three crucial points: customers always come first, customer loyalty is extremely important for profits, and when it comes to business, there are a lot of things I don’t understand yet.

I go to a university in St. Paul, MN and I am taking many business courses so I felt like I would be quite prepared for the challenges of the workplace. This was very different than I had imagined. I pictured walking in to the office where there would be a lot of very intense people who do not do anything but eat, sleep, and work, work, work.

My first lesson, customers always come first, clicked in my head when I first saw the way the management for re:member group takes care of the customers. They are always doing follow-up meetings or calling our clients just to check in and see how they are doing with their loyalty programs. They are never robotic but they genuinely care about the clients.

My second lesson ties into the first lesson because I learned that if our customers do not succeed, neither do we! If we do not follow up or help the client with any issues they may have with their loyalty program, then we don’t look good and neither do our clients. It may be a little bit harder to do it this way but it is worth it because it is just another way of investing into our customers.

The third lesson I learned was that this is a great place to get to know some great people. When you are on the job, it cannot be just about how much you get done on your to-do list. If people enjoy their workplace, they will be more productive and helpful in every area. When you are able to build relationships with your co-workers, you grow in how comfortable you are and you can start to accomplish more.

Overall, I have loved my first month here at the re:member group. It has been a great growing experience and I have already made some great connections. My co-workers have definitely challenged me to get out of my comfort zone and set bigger goals. They may not all have life completely figured out but man, do they work hard.

What is Your Break Point?

I’m incredibly loyal to my airline. Its been years since I even checked the competition’s pricing. Why? Because in a very competitive market, where the end result is always the same (I land at my destination) I know that prices are generally going to be with a narrow range. I choose my airline every time for one reason – the frequent flier miles. When you get that free trip from Minneapolis to St. Petersburg, FL in a snowy November – there’s no beating it!

Today however, I reached my break point. While looking to book business travel, the dates and times just didn’t add up. When I needed to land, I found the tickets from my airline were 50% higher than times that simply would not work. 50% higher! I reluctantly did my cross shopping and found the tickets with another carrier at the right date/time matching the best price of my airline at the wrong time. And so with a heavy heart, I booked with the competition. No frequent flier miles this time around.

The same can be true in any industry – when the product is essentially the same (a Toyota Camry is a Camry where every you buy it), and in a competitive market, 50% more is simply too much to justify the price vs.

breakingpoint

the loyalty factor.

Now luckily for us,. we’ll rarely ever see a scenario in the retail sector where the same product would vary by 50% between competitors. Loyalty programs however have proven time and again that a customer will spend more (even for unsatisfying service) if they are earning rewards. We’ve heard story after story of dealerships selling a vehicle for $500+ more than the competition, simply because the customer had points to cash in. This means a loyalty program can drive higher margins, while still closing sales. It’s a win-win scenario – as long as we’re not crossing the Break Point.

So what is your Break Point? Where’s the magical threshold that makes you leave your favorite business? Or is price the only factor that would cause you to defect? Leave us your thoughts in the comments. If you’d like to discuss customer loyalty and the huge impact it can have on your business, give us a call at 866-414-2582.

Also – do yourself a favor and go see Point Break. You can thank me later.

 

Nate Sieveking

President

nate@remembergroup.com

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