Paradox of Loyalty
the marketing press and you will frequently read about new loyalty
programmes or loyalty programmes being discontinued. The world seeks to
have gone “card crazy.” However, while a dedicated reward programme
can play an important role within a company’s marketing communications
mix, the subject of loyalty is part of a much wider issue.
of the problem, according to Through the Loop, is that all too often
marketers are focusing on attracting new customers rather on satisfying
their existing customer base. The result is not only that they take
their eyes off the ball but also there may be promotions such as
low-price deals to attract customers that have the potential to alienate
existing customers who pay a higher rate and over a longer-term.
customers are important as they are the best source of long-term
profitability for a company. The costs of maintaining these
relationships are lower than those of customer acquisition yet companies
persist with giving away hard-earned margin to attract what may
frequently be disloyal consumers. Customer promiscuity is encouraged
while genuine loyalty is not.
or reward schemes do have a role to play in helping marketers understand
consumer behaviour. However, these often appear to be launched without
any clear strategic objective or overriding consumer benefit.
Understanding of the behaviour of individual consumers is the best way
to achieve genuine satisfaction and a reward scheme can be a useful to
is one of the key consumer issues facing marketers today that is
analysed and discussed in the latest edition of BrandLoop from Through
the Loop Consulting. BrandLoop is written specifically for the benefit
of senior professionals in the business of marketing and gives an expert
and objective analysis of key branding issues that impact directly on
the success of marketing operations today.
the Loop Consulting Limited is an independent research-based marketing
consultancy. Through the Loop analyses key marketing and branding issues
that affect companies today in a chaotic business environment.
further information, please contact: Through the Loop Consulting Ltd.
Tel: 020 8334 6300/Fax: 020 8940 1447