The New Customer Loyalty Program
How loyal are you? For me, that question immediately derives two words: it depends.
If you've done something that was a positive result for me, was done with intent on your part and I can easily recall… well, I'm pretty loyal. I owe you. But, if only one out of three or even two out of three occurred… well, I'm not so loyal.
SundaySky customers spend a lot of time on this question of loyalty, and I'm fascinated by how it is driving a transformation of the old school “loyalty program.” These programs are quickly evolving from "shop here, get points, and redeem them for more stuff" to THE critical medium through which customers are introduced to, engage with and gain value from a brand.
For example, have you registered with MyLowe's, a super cool customer engagement portal Lowe's launched in October 2011? If not, check it out, because MyLowe's represents (to me) a great representation of the future of loyalty programs:
Continuously updated content, suggestions and recommendations based on where I live, my home profile, my order history, etc.
Truly valuable services, such as making sure I get that $100 rebate on my new appliance or storing my paint formulas so I don't have to find an old can before buying more
An integral part of a senior executive led strategy to "transform Lowe’s from a retailer to a dynamic and exciting brand that can connect emotionally with one of the most important things to people, their homes,” states Tom Lamb, Senior VP, Marketing
Don't get me wrong, as a customer of Lowe's and many other retailers, I get it: the end goal is to have me buy more from Lowe's than the competition. Yet, the difference with a loyalty program like MyLowe's is they're doing things that are genuinely good for me, there is obvious intent on their part to be helpful and, because I'm pretty much constantly needing something for my house, I'm always reminded of how they're helping me. Three out of three!
MyLowe's is a big step forward in loyalty programs and I encourage any company in any industry to evaluate it in the context of two key words: it depends.
What do you think? Are loyalty programs like MyLowe's the next big thing or is your company taking a different approach? I'd love to hear your feedback or comments!