Bill Hanifin
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Neil Rogers was the original “shock jock” in South Florida radio. Not being a fan, I was in a clear minority as he stacked up top ratings year after year before retiring in 2009.
Part of Mr. Roger’s shtick was living in the gray area of FCC regulation, and he was reminded from time to time by his employer that there are 7 dirty words that can’t be spoken on the air.
Rick Barlow was a man of different fiber. Mr. Barlow was the founder of Frequency Marketing, a company conceived and developed as the Loyalty marketing business unfolded.
Barlow had a laser-like focus on perfecting the art and science to “identify, maintain, and grow best customers through long term, interactive, value-added relationships”. That phrase is emblazoned on a coffee cup still in my cupboard, a souvenir from my days in Barlow’s Cincinnati office.
The evolution of the marketplace has placed pressure on “Loyalty” and how it is defined. Use the “L” word in a meeting and most people instantly think of points and miles, selling the concept short.
Has this made “Loyalty” a dirty word?
I’m not dropping the L word, but I do prefer to talk with clients about the need for a well planned and executed Customer Strategy. The broader term remains founded on the blending of behavioral and attitudinal data to create profitable behavior change across a portfolio, customer base, or market. The advantage of a Customer Strategy is that it allows for forms of execution well beyond points or miles and can be effective using no currency at all.
To underscore that I am not the only one concerned about being labeled the “points” guy, I was witness to a lengthy discussion at Templeton College where a room full of loyalty “experts” debated whether they should use different language to describe what they do. Suggestions ranged from “Customer Management” to “CRM” to “Relationship Management”, but in the end the group agreed it was becoming overly narcissistic and stuck with Loyalty.
Today, the idea of creating enduring customer loyalty to a brand is a lofty goal. Mark Johnson, CEO Loyalty 360 was recently interviewed by Fox Business on the subject and I have included the video here.
As Mark mentions, it is well within the capability of business to use its data intelligently to build relationships to give it an edge over competitors using pricing and discount strategies.
Loyalty lives, it’s just a lot more complex to deliver these days.
