Businesses have been advised to offer rewards to customers in order to drive loyalty.
According to Irving Fain, chief executive of CrowdTwist, loyalty is a “culture, not a commodity”, which means it has to be earned rather than bought.
He suggested that providing loyalty-based rewards could be a great way to achieve this, as it will help to give people “a reason to stick around”.
Mr Fain pointed out that the nature of the reward can “take many forms”. For instance, some firms might offer discounts to long-standing customers, while others might hand out promotional gifts, such as pens, bags and accessories.
He added that a good way of encouraging loyalty is to make customers feel as if the brand actually knows them.
This, he said, means they need to use all the information they have on their tastes, preferences and purchasing history in order to come with a personalised and relevant way of rewarding them.
Why money can’t buy customer loyalty, iMedia Connection
Posted by Robin McCrink