A loyal and satisfied customer is the best business strategy of all
Well,it is said that those who stay loyal deserve appreciation.In the modern retail, recognizing and rewarding customer’s loyalty has been a standard practice – and retailers have been trying to up their game by creating some differentiation. Here, in a series of blog, I would like to very briefly talk about loyalty and move on to cover what are the possibly trends that could create a lasting differentiation to build an effective customer relationship that helps retailer’s top and bottom-line.
One of the earliest documented loyalty programs goes back to 1896 - S&H Green Stamp program was introduced to win the hearts, minds and customer’s walletshare. To encourage loyalty, consumers received tiny stamps with each of their purchases from the merchants, which they then glued onto pages of booklets and redeemed them to buy products when the accumulated stamps had attained a particular value. Well, do you know how popular this program became? S&H Green Stamps once issued 3 times as many stamps as the US Post Office, and by the 1960’s, S&H became one of the highest selling consumer products in the whole world.
Starbuck's in US at one time borrowed a leaf from this book to come up with similar idea – every coffee you would buy qualified as a stamp on the ‘Loyalty Card’ – once you had 10 stamps, the 11th coffee was on the house. Accumulating and redeeming some sort of points/stamps are all intended to create a consumer stickiness - don’t you think with all the new technologies coming up, we could enhance it to make it more customer centric as well as profitable?
Stay tuned for the next blog in the series – The Loyalty Outlook.
About Author :
Laksh Dua is a business analyst working in the field of business intelligence and strategy in the retail space . He enjoys writing blogs and is an enthusiastic follower of emerging technologies
249, Udyog Vihar, Phase - IV, Gurgaon,