Loyalty Truth

Editor’s Note: Brian Kryzanski is one of the visionary leaders in the Loyalty Marketing industry and we are proud to introduce him to you as our newest Contributing Author at Loyalty Truth. Brian broke new ground while leading the launch of “Live It With Charter”, the new loyalty initiative at Charter Communications.  I hope you enjoy Brian’s insightful article on what it takes to gain traction for Loyalty programs in the Executive suite and at the Board level of major companies. Brian can be reached via Brian.Kryzanski@chartercom.com

The Art of Selling Customer Loyalty

Over the past five years customer loyalty has become a high priority for many businesses, but a low one when it comes to pulling the trigger on the financial investment and overall commitment that is needed to be successful. The bad economy has been top of mind for many businesses as they look to tighten their belts on their budgets and many times loyalty doesn’t make the cut.

Why is this? Most companies want to see an immediate return on their investment and lack the vision needed to see the benefits of building strong relationships with their customers over an extended period of time.

Companies that have loyalty programs are relying on them heavily as a retention tool as marketing dollars diminish. We all know it is much cheaper to retain a customer then to get new ones. Loyalty programs not only build stronger relationships with current customers, they increase share of wallet as well.  In tough economic times it is important to remember that the consumers are belt tightening as well, and have more choices today in how they do business than ever before.

If you are the one spearheading the charge in gathering the facts for your company in regards to the benefits of a loyalty program, assume your audience has minimal knowledge. When pleading your case, most executives want to see hard core numbers, ROI, and what results it will generate in the next 6 months.  Loyalty marketing is based on emotional stimulus, which can be complicated to measure and explain. It would be like telling your spouse you love them and then having to prove it on paper through analysis. It can be done, but you must set the expectations up front.

When I started “Live It With Charter” the new loyalty program at Charter Communications, we put a compelling proposal together backed up by a pilot program that proved its effectiveness. Be sure to understand your executive audience and show them what is needed to prove your case. Many times when they hear “loyalty programs” one assumes it comes with spending a lot of money on awards and prizes in hopes to retain customers. It is crucial to explain the back end analytics at work and how easy it is to gather valuable data from loyalty program members. The goal is to enable 1:1 marketing utilizing customer insights that lead to better response rates through email, direct mail and telemarketing in your acquisition efforts.

It is very important to remember that loyalty programs are not a magic bullet. The concept needs to be embraced by the entire organization, and excellent customer service needs to be at the forefront. Loyalty is just a piece of the overall customer experience and many consumers want to feel like they are getting something for doing business with you.

As we transition to the new era of loyalty marketing, it is important to be as educated as possible. I was grilled from all members of the organization, and the more I was able to answer questions and back them up, the more comfortable they became. Loyalty is a very “loose” term as it means different things to different people.  Building Loyalty requires a long term investment, and companies cannot make the mistake of sticking their toe in the water instead of jumping in. The results are not immediate, but will sure pay off long term.