Gaining Customer Loyalty

December 12, 2011 at 7:27 am Leave a comment

by Mike Daly

The Holidays are in full swing, and the annual retail pilgrimage is underway. This year, several gifts on my list include travel and entertainment items, from a plane ticket for my mom to a membership in AARP. (Yes, that one’s for Tony D.)

Like many of you, where I purchase my gifts and how I pay for them will likely come down to where my loyalty lies – which in my world often means getting the most points possible to maintain my Platinum Medallion status. Case in point: A few years ago, I switched my home’s natural gas provider, because I was able to save about $100 annually.  My old provider recently started offering Delta Skymiles, so if I switched back, I’d pay $100 more per year, but in the end, earn about 5000 miles. I made the switch.  Why?  Because I’m a points hound.

But what is really interesting about that little tale is I took that offer because it was relevant, contextual, and personalized. They knew how much money I spent each year to heat my home, and also knew I was a Platinum Medallion. With that knowledge, I was offered something that I perceived had value, based on who I was, and my preferences.

Hopefully one day my holiday shopping will be that easy. Someone will know I usually fly my mom to be with me and that my friends are getting older and will soon be in need of AARP’s advocacy.  Wouldn’t it be great, if based on my buying patterns someone sent me a shopping suggestion list of the gifts that would delight my friends and family?  Erasing that headache would make me indebted. Loyalty is a powerful thing.

Tell us, Carrying On Compadres, what makes you loyal to a merchant?

Entry filed under: Customer Loyalty, Mike's musings. Tags: , , , .

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