The Misnomer of Customer ‘Loyalty’ Programs

Here’s a statistic about customer buying behaviors that may surprise you. The Financial Post cited the findings of the Acumen Research Group on the value of customer “loyalty programs”. Loyalty programs are frequent shopper programs that give awards and discounts based on customers’ total purchases. The study found that loyalty programs were the second to last reason (21 out of 22) why customers returned. Value and good service got the highest marks. In other words, ‘loyalty’ programs aren’t. They create some repeat customers – not necessarily loyal customers. True customer loyalty is largely based on the way businesses deliver the intangibles.

 Jeff Mowatt is a customer service strategist, award-winning speaker, and bestselling author.   For more tips, training tools or to inquire about engaging Jeff for your team visit    www.JeffMowatt.com

Today’s chuckle:

Why do doctors call it practice?

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