Five steps in the right direction

Our Web site address on the Internet is: http://www.marketing-week.co.uk/mw0001

Yes, we agree with Alan Mitchell’s summary in “No rewards for buying loyalty ruse” (MW June 7) that the critical objective for any loyalty scheme must be to provide convenient and appropriate facilities to customers. However, we do not agree that there’s any comparison with the Eighties boom and upwardly spiralling margins and prices. Consider a few Nineties facts:

Price differentials in all markets are narrowing practically to the point of equilibrium.

Most service-based initiatives are immediately replicable.

Consumers are increasingly conditioned to the (apparent) benefits of mobility.They want pay-back not just product or service fulfilment.

All these issues are correctly focusing marketers’ attention on the opportunities for added-value marketing using relationship communications. The provisions of substantial added-value benefits to a customer base can offset the (perceived) gain by customers of moving their business to another (cheaper) provider.

Over six years, we have identified the following five key steps to successfully implementing a relationship marketing programme.

1 Isolate and address causes of defection

2 Focus on potentially profitable customers

3 Sell the programme internally

4 Ensure the objective is achievable and measurable

5 Aim high, go for customer growth, not just loyalty.

Chris Ogilvie-Taylor

Managing director

Marsden Grant Loyalty Marketing

London EC2

Latest from Marketing Week

NOT REGISTERED? IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and opinion that will help you do your job better.

Register and receive the best content from the only UK title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work. The more we know about our visitors, the better and more relevant content we can provide for them. And, yes, knowing our audience better helps us find commercial partners too. Don't worry, we won't share your information with other parties, unless you give us permission to do so.

Register now

THE BEST CONTENT

Our award winning editorial team (PPA Digital Brand of the Year) ask the big questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we are your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here