More on Loyalty and Customer Marketing ...

We recently conducted research in this area, both with end-customers and the marketing directors employed to build a relationship with them. We found a number of key areas that brands simply have to deliver on in order to drive loyalty and ultimately advocacy:

> Loyalty starts with the basics and a brand’s ability (often via its sales force) to deliver on its promise. Damage is inevitable when there is disconnect between marketing’s promise and sales’ ability to deliver.

> Customers want the brands they choose to be open and honest. The moment something goes wrong it is on your ability and energy in fixing it that you will be judged.

> Loyalty can be built by rewarding customers. But different customer segments value very different types of rewards. A student might want a free cinema ticket from his bank but a small business owner might be happy with an unprompted letter thanking him for the 20 years he has been the bank’s customer.

> Brands that succeed retain their relevance to people as they move through the different stages of their life and career. Think about a technology specialist who moves up the corporate ladder to a board level technology or business role. Think how IBM’s brand deals with this versus some of the more product focused IT vendors.

The same research also looked at the link between the current economic situation and marketers focus on loyalty. The results were interesting:

In interviews with marketing directors from a range of industry sectors, 51% said that they have increased their focus on loyalty marketing as the full effects of the credit crunch start to be felt, with 38% of this group saying that they have significantly increased spend in this area. Of those consulted no on had reduced their focus on brand loyalty and loyalty marketing schemes.

We also found that 83% of marketers are investing more in building or sustaining relationships with existing customers. With only 2% saying they had reduced investment in these relationships as a result of the unstable economic environment.

Get a summary of the research here:

http://www.gyrointernational.com/press_office/loyalty_for_life.html