Last week I tried a new frozen yogurt shop at the mall.
An employee was giving away samples. She asked me if I had ever tried the place. I told her no. She gave me a taste and explained how I could load my frozen yogurt with as many toppings as I wanted from the variety of choices available.
After I had loaded up my vanilla bean frozen yogurt with peanut butter cups, I proceeded to the register to pay.
The same girl, who had just asked if this was my first visit, also asked me if I wanted to join their Exclusive Loyalty Program.
I told her no, but asked her to tell me what made it exclusive and why I might want to join.
She said, “In all honesty, the only reason to join is to get all the promotions and coupons we’ll send you.”
And here lies the problem.
Loyalty programs and loyalty cards – even the very concept of customer loyalty – needs to be less about the discounts you give and more about the relationship you can create.
When we continue to condition our customers to be on the lookout for the next way to save a buck, we’re missing the essence of what loyalty is all about
In his classic book, Drive: The Surprising Truth About What Motivates Us, thought leader Daniel Pink shows us why most loyalty programs don’t work as well as they could when he examines employees and what motivates them to do their best work. Pink explains that historically most organizations have motivated employees through extensive rewards (think: cash bonuses), that that’s not really what drives people. Instead, people are driven by intrinsic motivators such as autonomy, mastery, and purpose.
Pink’s work can transform the way we think about customer loyalty. Don’t get me wrong, customers like perks and rewards but customers in today’s digitally interconnected society want more.
Customers want to be recognized and appreciated for their loyalty.
They don’t want to be viewed as just another transaction.
They don’t want to be placed on yet another email list.
And it’s this understanding that creates an amazing opportunity for you.
But you need to take your time and quit trying to rush to third base.
Today’s Key Challenge: Spend 60 seconds with your team and answer the following questions:
What are you doing after the sale to further the bond with your new customer?
How are you moving a client from the first transaction to their fifth?
What little perks and extras can you do to strengthen loyalty and word of mouth without giving away the farm?
