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Loyalty Programs.
Are you a member of your local airline loyalty programs?
I am.
Because I fly so often, I'm a two-million+ miler with Platinum for Life status. You might think I'm showing off, but you won't be that impressed when you see what the airline's loyalty programs gives me for that level of commitment:
- The ability to reserve exit rows. (I appreciate this).
- A second free checked bag. (Since I never check bags, this means nothing to me).
- Boarding status with Group Two. (That means I've earned the honor of getting on the plane after Concierge Key, first-class passengers, business-class passengers, families with small children, passengers needing extra assistance, military personnel in uniform, and group one passengers comfortably seated with their bags stowed).
- Occasional upgrades. (I mainly get these when flying between minor markets: Head Cheese, Alabama, to Sphincter, Wyoming, for example).
Unlike George Clooney's character in Up in the Air, on my one-million and two-million-mile flights, I was rewarded with… wait for it… nothing. No “thank you for flying with us,” no free champagne, no balloons, no confetti, no complimentary upgrade.
No nothing.
Last year, good friends gifted me a subscription to an online winery. They put some money in the account (which I continued to add), and we'd receive monthly deliveries. One day, I received a coupon for $100 off wine from this same company. But when I tried to type the code into my account, I was told it was for new customers only. In response, I pointed out how much we'd spent with them. They said, “No.” Then, I suggested canceling my subscription and starting a new one with the code. No dice.
That was the last time I did business with them.
Loyalty Programs.
How much more productive would loyalty programs be if companies realized that the way to keep their customers loyal is to demonstrate that the brand is loyal to them?
It should be obvious. But somehow, they either forgot or never cared.
Although this is a big problem, a simple, proven solution exists.
Want to know how to solve this problem for your business? I recently did a Q&A after a keynote speech where I answered this question. Click HERE or click on the image above to rediscover how to create loyalty.
The timing of your email is impeccable. Today I called Citibank. I wanted to speak with my “Citigold” representative. I am special, you know (tongue in cheek), by virtue of the amount of money I have in their bank and they have determined that I qualify as a Citigold customer. I asked my rep why I was still getting .000002% interest on my money. I told the rep that the other three banks I do business with had all increased my interest rate on my money to between 4.5% and 5.0%. I wanted to know whether Citibank would do the same. I reminded the Rep that I had been a loyal customer of theirs since 1980 and I currently had seven bank accounts and two credit cards with Citibank. The Citigold Rep explained to me that the only customers who get a high interest rate are the new ones when the bank runs a promotion. I was not entitled to a higher interest rate. I explained to this person that the concept of rewarding a new customer and not to a 43 year loyal customer was “ass-backwards” and I would be an idiot to keep my money with his bank when I could be earning thousands of dollars more in interest at many of the other banks. Late today I received an email from the Rep explaining that he was speaking with upper management about my request but that it would take two weeks for an answer.
Oy, Rick. Don’t get me started on banks and credit card companies.
Thanks to the feedback on this post here and on social media I think I will write a blog post on acquisition vs. retention.