Needless to say my answer was no more than a couple of sweet and short paragraphs. The below are all the ideas that jumped to my mind when she asked me her couple of questions:
Q1- What brand name nailed the concept of loyalty program?
Answer: Air Miles of course.
However, having lived in the Middle East all my life and in Dubai for the past 12 years, the brand name that jumps into my mind when you say loyalty is Skywards.
Skywards is by far the strongest brand in loyalty in the UAE. The brand recognition of the program itself is very high, let go Emirates.All other airlines have loyalty cards, some more successful than others, British Airways is one of the best…
The brands that jump into my mind in the second place are the hotels.
Here it’s a grey area. All international chains have rather strong loyalty programs. My husband only stays in Intercontinental hotels, my friend The Hilton. I have absolutely no loyalty; I shop around and always get better deals. Same with airlines, I always shop around.
Q2- What would be appealing to you as a customer in a loyalty program?
Answer: Dina darling, this is a very tricky question!!!
The concept of loyalty programs is rather new, and the effectiveness of those programs, although it can be proved, is difficult to attribute to a single factor or specific factors that is. So when you ask what would be appealing to me as a customer in a loyalty program… that is a very difficult question to answer!
What do I want from a loyalty program is way more complex than a simple straight forward answer. The straight forward answer would be more and more benefits. But that would be a rewards program and not a loyalty one: give and take, peer to peer. As for a loyalty, it is unconditional.
For a brand to capture my loyalty through a program there is a mix of psychological and pragmatic factors that it needs to consider:
Trust:
I trust that this brand is brand is the best in this field, I have strong believe in it
Identification:
This brand represents me, I identify with it
Aspiration:
There is always something in it for me to be engaged in. I wanna shoot for more
Status:
I proudly belong. This brand represents who I want to be. I will thrive to get it and to keep it up
Rewards:
This brand rewards me for being loyal. It pays to be part of this program. I am recognized. They value me and I value them
Continuity:
This is not a onetime promotion, I will always be rewarded for my loyalty
So to sum it up, loyalty is very difficult to establish, it needs way more than a simple program.
That’s why I’m an advocate of Rewards programs; they are very pragmatic and do the job in a faithless and such a competitive world.
You straight away jump to tangibles:
- establish trust,
- and then the rewards program becomes a revolving promotion that a consumer will lose if they are not part of it.
Am I a loyal customer?
No, I don’t identify with the brand; it doesn’t inspire me and doesn’t satisfy my ego or status. The moment the rewards stop, I will stop being a customer. The program keeps me “leashed”. But then again next month I’m getting into the Sheraton program, same rewards, less outlets, so it’s not as convenient as the Rotana one, but gives me variety and the satisfaction that I’m not tied up to the Rotana program.
Now the Jumeirah Sirus card is a loyalty card. If you check their rewards, they are not even worth it.
I don’t have to buy this card, it’s free. But I have to spend fortunes to start getting any recognition. Why is it so important for me to have it in my wallet then? It’s a status thing. The brand inspires me and I aspire to be part of it. The moment I get the gold card is very important: I’m with the same club as celebrities and VIPs!!!
How effective is such a program? It depends on what the company is looking to achieve out of it.
The loyalty card that is a true loyalty and rewards program is Skywards. It pays to travel Emirates and collect miles. As for the tiers program, it is just right: once I’m a silver card member or a gold card member I’m in the VIP club, and the more loyal and active I am, the more I’m recognized. It’s a status issue. It’s not about what to do with the miles anymore; it’s with collecting them and bragging about them.
I will leave you with a scene from last year’s Up in the air movie. Please tell me you watched it! If not go get a DVD tonight. A great movie for girls night in!
Ryan Bingham: Our business expense allots forty dollars each for dinner. I plan on grabbing as many miles as I can.
Natalie Keener: Okay, you got to fill me in on the miles thing. What is that about? You're talking about, like, frequent flyer miles?
Ryan Bingham: You really want to know?
Natalie Keener: I'm dying to know.
Ryan Bingham: I don't spend a nickel, if I can help it, unless it somehow profits my mileage account.
Natalie Keener: So, what are you saving up for? Hawaii? South of France?
Ryan Bingham: It's not like that. The miles are the goal.
Natalie Keener: That's it? You're saving just to save?
Ryan Bingham: Let's just say that I have a number in mind and I haven't hit it yet.
Natalie Keener: That's a little abstract. What's the target?
Ryan Bingham: I'd rather not...
Natalie Keener: Is it a secret target?
Ryan Bingham: It's ten million miles.
Natalie Keener: Okay. Isn't ten million just a number?
Ryan Bingham: Pi's just a number.
Natalie Keener: Well, we all need a hobby. No, I- I- I don't mean to belittle your collection. I get it. It sounds cool.
Ryan Bingham: I'd be the seventh person to do it. More people have walked on the moon.
Natalie Keener: Do they throw you a parade?
Ryan Bingham: You get lifetime executive status. You get to meet the chief pilot, Maynard Finch.
Natalie Keener: Wow.
Ryan Bingham: And they put your name on the side of a plane.
Natalie Keener: Men get such hardons from putting their names on things. You guys don't grow up. It's like you need to pee on everything.
