The idea of customer recognition

Last Updated: December 1, 2011By Chintan Bharwada

If you have a loyalty program you probably have different levels where members belong, this is the idea of recognition – Platinum customers get preferential treatment. I strongly believe that customers like this recognition and feel proud about their association. After all, all it signifies is that “Hey, you are important to us.” If you don’t believe me, just look at any airline frequent flyer program. I have come across many members who like state that they are “gold” and “platinum” members.

I believe that at every level of your loyalty program there should be increased customer recognition. The recognition you give should be noticeable e.g. extra points, or intangible e.g. special entry or invitation to VIP nights. For retail loyalty program, being able attend sale before its open to the public, is nirvana. Or being able sip a glass of champagne in-store while shopping is heavenly. In this dynamic business environment, it is critical that you don’t misjudge or miscalculate customer recognition.

Consequently, I urge you to ask this question to your marketing or loyalty manager “what are you doing to tackle our customer’s hunger for recognition?” Remember, when retail-marketing people said that they wanted to create special extended trading hours for their best customers, the operations people cringed and said they were crazy. Guys, don’t take “no” for an answer.

Chintan Bharwada

Chintan is the Founder and Editor of Loyalty & Customers.

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To achieve better sales and profits, most companies could be doing more to cultivate business from their existing customers. However, enthusiasm for customer-retaining strategies must not endanger sound customer-getting efforts. How companies balance the two is the big question. To intensify reaching old customers while still seeking new ones, for many firms, will mean changes in market analysis, planning systems, management incentives, and marketing and/or operations organization. In the rush toward growth, consumer marketers have tended to regard success as stemming from obtaining new customers while unwittingly minimizing the importance of satisfying old ones. It is time for more companies to distinguish between their getting and retaining functions, to assess the balance between them, and to remedy any deficiencies in customer retention. This process requires management to value the potential of current customers and to treat them in special ways to get them to keep coming back. Several major elements should be part of the new marketing mix for customer retention: Product extras Keeping customers frequently requires giving them more than the basic product that initially attracted them. Product extras for individual customers over time can play a sales-expansive role. Reinforcing promotions Product promotion works better when aimed at existing customers. If a marketer knows who these customers are, benefits can be obtained by giving them reinforcing communications. Sales force connections The sales force can play a decisive role in the customer-retention function. At a retail or service counter the salesperson is the focal point of the company's strategy and is the firm to the customer. Post-purchase communication A company must anticipate that some customers will encounter either minor or serious problems after purchasing. If the firm is not ready to hear and correct these difficulties, the customer may not repurchase or may cancel the the relationship. Whether company or customer is at fault, standby post-purchase activities can be instrumental in saving these customers.

One Comment

lori January 21, 2013 at 7:53 pm

Great post to read.
I have to start looking after our customer recognition of our company.
Thanks to the article.

Comments are closed.

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