Customer Retention & Loyalty

Program Planning and Implementation.
Most people think of loyalty programs as an airline that gives miles to frequent fliers, a hotel that gives points toward a stay or a restaurant that offers a punch card incentive. While these may be called loyalty programs, we would submit they are marketing programs; disguised as loyalty programs.
While we do not have a problem with this concept, we need to have a clear understanding of the differences between loyalty and marketing.
Some customers choose to be loyal to the airline, hotel, restaurant, etc., because of points more than anything else. Human nature kicks in and the “member” of the loyalty program becomes fixated on earning points. That is why passengers will fly an airline with which they have the most points, even if it means paying more for a ticket. The bottom line is that these customer “loyalty programs” do work to drive sales and create repeat customers.