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.


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




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