Loyalty Programs are Uncool Now? - The May 27 Customer Engagement Recap

By Brandon Carter | Updated on May 27, 2016 11:28:00 AM

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The news and Opinions affecting consumer engagement 

That You Need to Know

 

In this week's customer engagement recap:

member benefits

    • Dipping Into Loyalty: Chipotle Program to be Called ‘Chiptopia’ (Colloquy)

The long-rumored Chipotle loyalty program has a name, though it sounds like something your spouse may have picked up as an impulse snack on the natural foods aisle. Regardless, building out a system to cater to loyal spenders can only help Chipotle, and it'll be money far better invested than simply flooding the market with free burritos to any and all takers. 

The big takeaway from this is as long as you find a way to add value, you can send just as many emails as you see fit. Don't get carried away and send dozens throughout the day, of course. But the value is the biggest challenge - what can you give customers that isn't just asking for more purchases, that will make their lives better somehow? That's the million dollar question, but some businesses have figured it out (Quora, for example, has very good emails that go out daily)

The headline is a tad overstated (shocking!), but there is good stuff in the Collinson survey the article is built around. Namely, that loyalty programs aren't going to make up for poor customer service and shabby products. It's not programs that are falling out of favor; it's the retailers themselves.

Over at our sister blog we examine a common hiring dilemma: hire the Superstar Diva or the Pretty Good Performer Who Won't Completely Wreck Coworkers' Morale. I think you can guess which choice we side with.

  • The 3 Most Expensive Customer Loyalty Program Mistakes (Thankx)

The second bullet here is key, and is related to the "out of style" BI article above. Namely, the tasks some loyalty programs ask members to complete to get to their rewards are counter-productive. The more hurdles customers have to climb, the more likely they are to disengage.

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Topics: Customer Engagement, consumer trends

Written by: Brandon Carter

Brandon is a writer and marketer for Access Development. He's a frequent blogger on customer and employee engagement & loyalty, consumer trends, and branding.

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