Loyalty (Consumer Rewards)
Loyalty is important in business for many reasons , today we would like to discuss loyalty to a brand. Many consumers, travelers especially, have in years past cast their vote for their favorite airlines, hotels, retail stores and restaurants, by obtaining customer rewards and loyalty cards. Many businesses offer their customer’s rewards cards, credit cards that offer the client incentives based on the amount of money they spend at the store or the amount of time spend using their services. These incentives include discounts, the accumulation of points and or free merchandise or service. In years past this has created fanatical loyalty, but due to recent changes in many of these programs, most apparently in airlines, these die-hard consumers are cutting up their once cherished rewards cards.
The causes behind the mass exodus are changes viewed as unfair or biased, changes in many of these rewards based programs are now riddled with stipulations and fine print. For example many airlines are not rewarding you by the amount of miles that you fly but by the amount of money you spend. This heavily favors the business traveler as opposed to the leisure traveler as the later normally has the rewards card so that they can save money and take advantage of different perks as they become available. So the results are that approximately 33% of travelers last year were driven by cost and value as opposed to 9% that were driven by loyalty to the brand or company. This is a drastic change from past years.
Ultimately it may mean the end of loyalty programs and rewards cards or a reversion back to the old ways when consumers were happy. The average customer has access to a lot more options and information then they once had and they now have a choice. The answer for companies is to give the people what they want or risk losing their business.
In conclusion customer loyalty to a brand or business is what drives profits and growth. If a business loses the loyalty of its customers the result can only be a negative impact to the bottom line. The change in many of these programs was made in an effort to get their customer base to spend more, but in reality the change has done the exact opposite. If brands want to keep their customers happy a change needs to be made.
All Star Limousine is a Long Island, New York based company with an extensive global reach; we provide expert Wedding, Special Event and Executive Travel services throughout the Tri-State area and the world. We have over 30 years of experience in the travel industry; our attention to detail, 2014 top-of-the-line vehicles and professional trained Chauffeurs set us apart from the rest!
by Jarrad Kulick