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January 19, 2005
Loyalty cards
Last Sunday, during the Blogger’s meeting in Starbucks, I went to get a cup of coffee.
They asked me if I have a loyalty card – I had none, but also told them that I don’t want one. I have so many already, and I believe, my wife has even more.
Have you realize that loyalty card schemes become more and more prevalent? Just open your wallets and your purses and count them.
You buy and buy something with the loyalty card, and than, sometimes in the nearer or farer future, you get a free price, mostly a product.
In Jaya Jusco and being a good purchaser, well, the cashier register shows the sign: Good Customer.
Does this “celebration” change anything? Nope. You still don’t get a smile from them, or an acknowledgement, straight away, right at the cashier.
But this is not what I am getting at, also it is upsetting. Especially when you want to redeem the free price you get from Jusco.
A long queue, and waiting, waiting, waiting. Customers redeeming their price get actually punished for using their loyalty cards.
Does a loyalty card make me more loyal, to any one company? Nope, not at all. I grab the price but I won’t necessarily come back to them, if service gets bad, or the food quality declines (or the queue gets too long).
In many cases, would the company come back to me, to check, if all is alright withme, when I or my wife don’t purchase that much anymore in their place? It hasn’t happen to me. Let’s get back to Jaya Jusco – they collect all those data, and I believe they have a great database that collects all those data. But still, there is no personalised communication from them to my wife, when she is not shopping in Jusco anymore.
They could do that, couldn’t say? All you get is the brochure that let’s you decide on your free price or their invitation to have the pleasure of early shopping (late at night), when they offer a sale. You can shop/ spend money, before anybody else.
But no birthday greetings, or inquiry, if you are sick, if you haven’t shopped with them for let’s say, 6 months. Or your purchase level drops dramatically suddenly. No question asked, what happened to you. Is this asked for too much?
I think that this personalised service creates more loyalty than any loyalty card. Especially since loyalty cards are all around us, thus, they don’t offer any competitive advantage. Just one more card in my wallet, taking more of the limited space.
Tim Manner, over at Fast Company writes about Loyalty Cards today – I found his writing at Seth’s blog. He talked to Spence Hapoienu, CEO of Insight Out Of Chaos, who is in the loyalty card business.
Spence said "A loyalty card is a piece of plastic. Most loyalty programs are plastic. They do nothing more than replace traditional paper coupons with electronic coupons. Why would that generate loyalty?"
Anna Schyver of Land's End is quoted in the article as well. She says that "Customers who customize are more loyal."
I would say that companies who created personalised and customised the experience create loyal customers and wins in the business.
I just read this entry about Singapore Airlines:
While I don't agree with the first action - cancel the account because it hasn't been used for a long time - I like the second mail send to Prema
Posted by Andreas at January 19, 2005 12:47 PM
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Comments
Try the loyalty card from No 8 Restaurant and Pub in Graaff Reinet, South Africa. At least someone knows what a loyalty card should be used for. You name it, prizes, lucky draws, discounts, demographics, security, advertising, VIP treatment at its best. Believe it!
Posted by: Paul at February 13, 2006 08:36 AM
Loyalty cards work if there is a personal touch to it. But largely here, the cards are cashing in making shoppers their slaves.
Jusco for example, is horrible in their service. What good customer are they talking about. The manner they ask for your card is not the least pleasant. Try calling their customer ralations people for the Jusco Card, you'll be amazed that they don't even know how to converse in proper English. Mind you, that is their manager answering my queries and complaints. Some Jessica woman.
They did come out with impressive marketing materials to garner more customers. But what is the point when their first tier or second tier of contact people are just absolutely hopeless?
So these days, I just don't bother anymore with Jusco. Hopeless!
Posted by: eka at August 17, 2005 05:11 PM
Loyalty comes not from the card but from the experience. I agree. I feel loyalty cards is simply an extra incentive... knowing I'll save more or get a nice gift whenever I shop at one of my favorite places anyway... from my favorite grocery store to bookstore... If the retailer notices that I am a frequent shopper, it's nice to be treated like a VIP. Personally, I like getting emailed incentives and updates more than loyalty cards. Companies just need to do the unexpected for their loyal customers. Surprise us by your generosity or let us know you care.
Posted by: Maya at January 21, 2005 07:35 AM
I have one from Body Shop - which is the only one I really use - Coffee Bean, Starbucks, MPH (which I'm not updating), Sushi King, Real Rewards (belongs to Mum) and BonusLink (belongs to Mum).
And I don't even use any of them on a regular basis except when Nil wants a Mango Frappe, I'm craving for Body Shop and Coffee Bean! >_<
Posted by: Mei at January 19, 2005 03:52 PM