By Julia HydeRemember trading stamps? If you’re over 40, chances are you will. Every time you shopped at a participating grocery store or gas station they gave you stamps to paste into a book. When you’d accumulated enough stamps, you could cash them in for “free” gifts.
These stamps were one of
first loyalty programs. They kept customers loyal to a particular product or merchant because they offered an incentive that encouraged
customer to keep coming back – and spend more money.
While trading stamps are a thing of
past, a wide range of industries still use loyalty programs to establish long-term relationships with their customers. By far
most successful and well known is
frequent flyer program.
On
surface, frequent flyer programs appear to be all about rewarding customers with free flights just because they choose to fly with a particular airline –
more miles you fly
more free miles you get. But, if you asked
airlines who really benefits from these programs, chances are you’d hear a resounding, “We do.” Ask them to explain, and they’ll likely tell you that frequent flyer programs allow them to collect data on individual customers, help them tailor their mailings and special offers to
customer’s specific needs, allow them to promote higher fares, and ultimately increase their sales.
But, as popular as frequent flyer programs have become they only work if
service offered by
airline is good enough to earn
customer’s trust. And that means not only offering a quality flying experience but great customer service and on-going communication.
For smaller businesses,
benefits of establishing a loyalty program are no different to those enjoyed by
major airlines. And equally,
program’s success depends on first establishing
three most important elements of building that loyalty:
1. Treat your customer’s right, and they’ll be yours for life.
Your customers will not only judge your company by
quality of your product, but also by
level of service you offer. Offer one without
other and you may as well give up now.
Great customer service includes, among other things:
Credibility: Your customers should be able to trust you. No one wants to be on
alert for
small print or hidden charges. They want to know that your company can be trusted and has their best interests at heart.
Flexibility: Never use
words, “I’m sorry but it’s not our policy.” Always solve your customer’s problems, even if it means losing
sale. There’s nothing worse for a customer than a company that will not go out of their way to accommodate their needs.