Michael Heppell: Why it's time to think about loyalty 3.0by
The debate about what represents customer loyalty in the digital age is a perennial one. Consumer behaviour expert, Philip Graves is part of an academic faction that says loyalty shouldn't be part of the business lexicon at all, because humans are not psychologically wired to be 'brand loyal'.
Despite this argument, many business are forging ahead with trying to refine their approach to fostering loyalty. Forrester’s recent ‘State of Loyalty Strategies’ report found that 80% of decision-makers at large organisations have set customer loyalty as their top marketing priority for the coming 12 months, spurred on by the growing financial discrepency between acquiring and retaining customers.
Yet, loyalty appears to no longer be as cut-and-dried to consumers as it once was. Today, there are 3.3 billion loyalty programme members in the US alone - representing an average of 29 per household. Yet in the UK, for instance, around 48% of these 'members' fail to claim points or paper vouchers through the schemes they're signed up to, suggesting loyalty can no longer be bought by brands via reward in the way it once could.
Author and business expert, Michael Heppell holds this view, and believes many brands are in need of redefining their approach to customer loyalty. He refers to this new line of thinking as 'loyalty 3.0', and recently spoke to MyCustomer at Rant and Rave's Year of Emotion event about why this was so important:
00.13 - Why have we reached the 3.0 phase of customer loyalty?
00.49 - Why do we need to enter this new phase of thinking around customer loyalty?
01.26 - What does a business need to do to get its approach to loyalty right?
02.06 - Are we guilty of being too reliant on customer satisfaction as a measurement of loyalty?
02.41 - How do we turn detractors into loyal customers?
Chris is Editor of MyCustomer. He is a practiced editor, having worked as a copywriter for creative agency, Stranger Collective from 2009 to 2011 and subsequently as a journalist covering technology, marketing and customer service from 2011-2014 as editor of Business Cloud News. He joined MyCustomer in 2014.