New thinking: Customer Loyalty

ScissorsCIM members can receive a weekly bulletin called Cutting Edge which summarises marketing-related news from across the sectors.  In their words it: “It will keep you up to the mark with short and snappy paragraphs on everything from FMCG to brands, and from loyalty programmes to fashion marketing”.

This week there was a running theme on customer loyalty which is relevant to Intro Certificate students taking the Understanding Customer Relationships module.   Here are some snippets from it:

A question of loyalty

Brand loyalty leads to extension, high market share, good return on investment and high brand equity. However, loyalty schemes are often developed without thought to why consumers remain loyal to a brand.   Customer loyalty and customer satisfaction are not the same thing and customers can remain loyal without necessarily being altogether happy with the product or service. Low customer defection does not equate with satisfied customers. This paper examines the issues surrounding brand loyalty.

Journal of Brand Management, Vol 18 (4/5) pp285-299

Loyalty cards are back

Retailers that have introduced loyalty schemes recently, such as Waterstone’s and, report that customers respond well to earning points on their purchases. But the real value of loyalty programmes is deemed to be their insight into customer behaviour, allowing the likes of Tesco to get ahead of the game. So are retailers benefiting in this respect? The aim is to attach sales information to customer information and discover what customers buy regularly so that they can be segmented and marketed to accordingly. The latest ideas are discussed, with particular reference to Ice and Debenhams Beauty Club.

Retail Week, 4 February 2011, pp40-41

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