115: Do Loyalty Programs Still Work?

Traditional customer loyalty programs aren’t performing nearly as well as they used to. How can we forge loyalty with the next generation of customers? The next generation of loyalty programs Punch cards, reward points and other incentives have helped companies forge customer loyalty in the past. But these methods have lost a lot of ground! Customers are using technology to help them shop with hundreds, if not thousands of competitors. The advantages of saving up points or checking emails for short-lived discounts don’t seem as sexy to today’s consumers. A new trend in customer loyalty is really taking off, especially with the next generation of consumers. Smart companies like Amazon have discovered a demand for pay-to-play loyalty programs. (In case you haven’t noticed, Amazon Prime has gotten HUGE!) This is great news for everyone involved. Customers now know what to expect for their loyalty, and the companies who offer these programs see an immediate return on their investment. From a business owner’s perspective, this sure beats waiting forever and a day to see if those customers actually ever return! But it’s not just big brands that are using similar strategies to create rock-solid relationships with customers. And if you’re still using a traditional model for your loyalty program, we’ve seen a lot of evidence that shows it may not be generating the loyal following your brand deserves. There may be a better way! Would your customers make an up-front financial commitment with the promise of continuing value? Adam and Jeannie share some new ways companies are gaining an impressive following by innovating around the needs of today’s customers. How do they make it work? How did they know it was time for a change? Listen in and find out! Related Content Customers That Stick® post, Customer Loyalty: Winning Hearts and Minds 360Connext® post,  3 Themes for Driving Loyalty Infographic: The Science of Customer Loyalty Episode 097: The Best Customer Loyalty Metrics Episode 058: Jill Griffin, The Loyalty Maker Episode 057: Customer Loyalty Trumps Industry Disruption Sponsor message: Give your team the customer service training they deserve Want to bring game-changing customer service training to your team? CTS Service Solutions offers a half-day in-person workshop designed to motivate and educate your customer-facing team members. Using energy, excitement, and interaction, our workshop helps frontline teams embrace a customer-centric outlook, then — using the principles from our book Be Your Customer’s Hero — gives them the skills and confidence they need to handle any service interaction. Don’t leave your frontline team hanging… Give them the training they deserve. Learn more at customerheroworkshop.com.   Take care of yourself and take care of your customers. Learn more about your ad choices. Visit megaphone.fm/adchoices