“There’s a lot to be gained from taking care of existing customers,” says Johan Gente, seller at Strålfors with a loyalty programme focus. Photo: Ewa Levau
“Earn your place in the customer’s wallet”
4:14 PM 2/9/2010RELATION DIRECT, LOYALTY CARDS
Customers’ wallets are filled with loyalty cards. And letterboxes are filled with offers. “But customers want to be appreciated. If the offer isn’t relevant, they’ll soon replace it with something else,” says Johan Gente, seller at Strålfors and former manager of Lindex’s loyalty programme.
Inviting customers to join a loyalty programme with a range of attractive offers is a popular trend in the service sectors.
“But very few businesses keep the promise they make when they start their loyalty programme – giving something back with customer-perceived value,” says Johan Gente.
The offer must be constantly renewed to keep the loyalty club alive.
Otherwise the customer will replace your membership card with someone else’s.
“You have to earn your place in the customer’s wallet. Find out why the customer has chosen you and give them a reward.”
Can anyone create a loyalty club?
“Yes, anyone who runs a business should be interested. It costs considerably less to keep existing customers than find new ones. You can save money while making a profit.”
Why not use normal channels for communicating with customers?
“TV ads, for example, communicate the same message to everybody, without knowing who the message reaches or what impact it has.”
In a loyalty club, the customer has consented to receiving the information, and we know what the customer likes and usually buys.
“The relationship has already been established, the task is nurturing it.”