Saturday, April 13, 2013

Loyalty

When an organization seeks loyalty and gets it, the work just begins.

It's not about handing out the points, the perks or providing the ability to track "status".  It's a contract - a subtle one where the organization has said - "we value you, and we'll recognize that".  That in itself is a huge step.  And it's the heart of the matter.

The loyalty offer doesn't have to be made by the way; we could all live in a Walmart world where the provision of lowest prices carried the day. When the organization elects not to do that, and instead seeks our continued patronage in return for recognition, it's very compelling for many people.  However it carries an implicit promise that is so often over-looked, and that is that when we perceive that the recognition of the value you or I provide isn't forthcoming, we tend to head for the hills quickly.

Recognition isn't 'points' by the way, these are the reward for past behaviour and the lure for future patronage..just one more coffee, flight or trip to the grocer for the free whatever-it-is-we-seek.

Recognition is that acknowledgement that we're all participating in a contract whereby you get my business in return for the understanding that it's appreciated.  When that stops - the points and other mechanisms aren't enough to maintain that loyalty on their own, as just about everybody else has similar reward schemes these days.

Sadly too many organizations have lost the plot on loyalty.  They think they're trading prizes for loyalty, when in fact that wasn't really the basis the customer had for entering into the arrangement.  It is why their customers leave though.

No comments:

Post a Comment