Companies that want to capture more business from their existing customer base often devise loyalty programs as the means; they combine discount pricing with technology or special services, then try to sell customers on implementing the program.
Three problems with this tactic exist:
- Loyalty programs have become commodities, easily copied or matched by competitors.
- In many cases, customers can switch loyalty programs as easily as they switch suppliers of commodity products, without losing anything they value. At best, they can be temporarily satisfied with a loyalty program.
- Satisfaction is not even remotely the same thing as loyalty. Loyalty attaches to people, not programs.
Consider these findings from extensive research by The Sales Board…
About Duane Sparks
Duane Sparks is founder and chairman of The Sales Board, the authoritative source of practical and leading-edge information about the art and science of selling. He has created Action Selling sales training products and learning systems that transform sales organizations. Duane is author of these best-selling books: Action Selling, Selling Your Price, Questions (the Answer to Sales), Masters of Loyalty (How to turn your sales force into a loyalty force), and Sales Strategy from the Inside Out (How complex selling really works).
Discover how the best sales training process can make spectacular improvements in sales skills. Action Selling: How to Sell Like a Professional (Even If You Think You are One).