‘Money can’t buy’ offers are limited in the loyalty factor
I read your news article on The Loyalty Practice research into brand building (“Money can’t buy” offers are key to brand loyalty, MW 14 October). While it is true that keeping consumers loyal is down to far more than simple price discounts, I think the notion of building loyalty through ‘money can’t buy’ extras may only appeal to a limited demographic. The UK is still in a recession and many consumers are fundamentally rethinking the way they interact with brands, and changing lifetime habits to fit with their new circumstances.
Coupon use has become widespread over the past year and while traditional bogof discounts will no longer provide the market the cut-through needed, price-based discounts still have the power to attract consumers. In order to convert consumer interest into consumer loyalty, brands need to convince customers that the offers are personally relevant to them as individuals, rather than fitting into the “one size fits all” bracket.
To attract price-conscious consumers, and encourage them to stay beyond the initial discount, retailers need to offer a more sophisticated discount scheme, looking at past and present purchasing behaviour and offering an individual, targeted offer. Maintaining a constant dialogue with individual customers is the key to changing behaviour in the long term, rather than simply increasing footfall in the short term.
By continuing to offer the price cuts that consumers want, while delivering offers that are relevant, retailers and brands can build loyalty, and delivering on the more immediate need for competitive prices.
Dak Liyanearchchi
Senior VP, global retail solutions
Catalina Marketing
