Loyalty Programs Get Personal

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Thursday, April 26, 2007
By Lisa Wilton
Calgary Herald

Do you have a point? Chances are you have hundreds, if not thousands of points.

The average consumer's wallet is packed with loyalty cards that exchange points for purchases, or give an extra discount at the till.

But companies have recently been taking a closer look at how attractive loyalty programs really are to their customers.

And what many companies are finding is that consumers want to be acknowledged as individuals with products and services tailored to their particular needs and tastes, says Scott Martin, managing partner of Calgary-based Strategic Direct Marketing Group. " It's getting increasingly difficult to get people to carry around loyalty cards because there are so many out there right now," says Martin.

"One thing companies are trying to do now is to talk to you in a personalized way and to offer something that is specific to you."

In fact, Martin-who has spent more than a decade studying the impact of personalized marketing and refining marketing strategies for companies-doesn't believe loyalty programs necessarily need to include a card or points system to produce loyal customers. He says there are many options that can work in conjunction with the traditional loyalty programs.

Value-added personal service-type applications and programs, which aim to provide better service with each interaction, will ultimately overshadow monetary rewards, says Martin.

"The ongoing competition for customer attention for customer attention and ultimately loyalty is the new marketing imperative," says Martin.

"Companies need to provide people to consider them over their competitors."  SDMG senior partner Mike Allan agrees, even likening the relationship between company and consumer to a first date.

"When you first meet them and you're getting to know them, you make some assumptions about their likes and dislikes, " Allan explains.

"But over time, if you don't learn enough about them or get to know them well, the relationship isn't going to last long."

Westjet, for example, recently unveiled its innovative desktop tool called Get Set. When installed, Get Set notifies customers of sales and specials from Westjet and its partners. Travellers can personalize this information by inputting which destinations they wish to fly to and at what fare. When the specifications are met, a Get Set notification will appear and customers will be able to book the flight online.

When we set out to build Get Set, we really wanted it to be a one-on-one application," says Westjet director of web business David Jones.

"And it's pretty evident how it builds customer loyalty. It's letting you know the fares you want as opposed to fares and destinations that your not interested in."

WestJet web services advisor Jennifer Ishiguro adds the airline was eager to develop another way to connect with its customers.  "You have to keep things fresh and dynamic because there are so many things out there vying for attention," she says.

"This information is going to be more valuable to you because it's something you've actually asked for."

Coast Hotels, meanwhile, implemented an inventive live chat system on its website that enables online visitors to interact directly with the Coast Hotels call centre for assistance in online booking.

"Live chat is another example of a service that increases learning about customers' preferences," explains Allan, noting SDMG worked with Coast Hotels on the system.

"It enables Coast Hotels to interact in a personal way that improves the interaction with their company and the results point to increased loyalty to their offering."