And now we come to the explanation of why investment in customer loyalty systems should still be increased if we already invest so much money…
These reasons are found in the graphic below where these reasons are summarized…
Specifically, in the responses to the questions that were asked of the respondents, we placed them in order from 1st to 6th, based on the number of those who considered the content of each response most important.
Let’s comment on them together…
According to 42% of operators surveyed, membership in loyalty programs leads to sales growth.
In second place is the answer given by 36 percent of respondents who say they need to increase efforts and investments to implement systems from a technological point of view, while for 35 percent of respondents, in 3rd place on the value scale, when major performances are recorded it becomes a priority to increase investments in this regard.
4th place and that is, 34% of operators say that being a leader is also shown by being among the main players in loyalty investments while in 5th place we find those who say (33%) that with the increase of competitors it becomes necessary to increase investments in loyalty programs and finally in 6th place, for 30% of respondents, it is considered absolutely necessary to provide more value to those who are registered to loyalty programs.
Let us begin by stating that, in our opinion, the outcome that ranks 6th out of 6 questions, should instead be the top priority and should be in the 1st place in the minds of operators because only by providing more value to their loyal customers can they really build something over time.
It is clearly obvious that we are stating this because the loyalty program was created precisely with this objective, that is, to give more value not only to those who are simply registered but those who actually, in addition to being registered in the loyalty program, actually bring more value to the company and who then trigger then all those actions, some of which were read as answers to the questions posed and also highlighted in the graphics…
That membership in loyalty programs leads to sales growth is an absolutely natural thing if the loyalty program represents a true ongoing interaction with your customer…that as competitors increase, investments in this regard must increase, is absolutely normal but, the first goal must be precisely to provide more value to those who sign up for your loyalty card and who then really want to follow you.
Of course, considering that the companies interviewed are among the largest in the world, on the one hand one has to consider that, being precisely global giants, they develop mind-boggling turnovers and therefore should have those skills within them that are suitable for touching such important topics.
In fact, what yesterday was called the marketing director or marketing director in English, is now being supplanted by the CGO i.e., the Chief Growth Officer, in other words, the one who is in charge of the division that deals with the whole world that revolves around sales growth and company growth, which of course goes through marketing.
Marketing in the narrow sense is outdated as a way of understanding growth models that are more focused on products or advertising; today we talk about real offices that deal with business growth where the old model is always there, but it represents only a part.
It is clear, however, that if 3 out of 10, because in 6th place we saw there were 30 percent of respondents, put the need to provide more value to their truly loyal customers through loyalty programs at the top of their list, it is implicitly clear how far they still have to go in this regard, and if a company does not make this consideration one of the company’s “musts,” either they are fortunately able to grow from inertia, or they risk not growing at all.
Then there are those who escape these rules because they are market leaders, because they occupy particular market niches with high barriers to entry but, in the generality of cases what we have said so far applies while, even if you are the former, but you do not maintain the mentality of the latter with that unstoppable desire to climb mountains, lulling yourself on your own prowess you run the risk of making big slides backwards, and history teaches us how this is unfortunately true with companies that from leaders (Nokia, BlackBerry, Ericsson…just to name a few), have been downsized considerably.
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