Does it still have value for your long-term clients? (You’ve locked in prices, but are there any other incentives)
…you still think it’s working
When was the last time you updated your loyalty program? (Has it been more than 2 years?)
…do you still think you have a solid program
Here is an example that I keep replaying in my head. This example happened to me this week.
I have belonged to the same Fitness Club in my area for over 15 years. Currently, I pay $60.00 a year because I have been a member so long. In addition, I also joined another club because it was more family oriented and I wanted to go workout with my sons. The price of this membership is $80.00 for a family of 7. We have been members for 1.5 years.
At both locations, the equipment is very dated and the decor has hardly changed over the years. At the Fitness Club, I could tell you which pieces of equipment are less than optimal. In addition, the locker room is so dirty that I use the small public lockers which are visible from the equipment. At the family fitness club, the equipment is very limited and usually the best equipment is always being used because the other members have also figured out which equipment works best.
Now enter a new fitness club to my area. I took a tour of the place and could not believe the wide array of equipment and all of it was brand new. The place is clean and the workers are eager to please. There were two price levels and one level came with no contract requirement. It could be paid on a month-to-month basis. Needless to say, the new equipment caught my eye and I was really overcome with a renewness to workout in a clean environment. I signed up for the $10.00 an month program with $20.00 initiation fee and have since started going to this new location.
Working out for me is a much better experience and eventhough I receive tremendous price savings because of my loyalty, it comes at a price. At some point, that huge savings may not be that great of a deal if the experience is not improved soon.
Companies need to reinvent themselves and update their look
This example really showed me how critical it is to keep updating and maintaining a pristine look. Too many companies are trying to get by but investing the minimum into the client experience. Now some people would say, that people do not like change. This may be true, but who doesn’t like to go to a place that has been updated.
People are loyal with respect to price, but people love newness and the feeling that they are loyal to a company that is cutting edge and always trying to improve upon its processes and image. Clients want a better experience. There is a high value on this particular feature.
Companies need to create “much” better experiences for their clients
How would clients talk about the experience they get from your company? Are you making little changes which may not be noticed or are you really taking time to create a much improved experience. There is a difference.
Focus on building a better EXPERIENCE than designing another loyalty program
Price is only one factor. Build and experience where the client is in control and takes hold of the experience and makes it personal.
Focus on creating a better experience in the following areas:
- client service
- phone call
- reception at the front door
- parking at your company
- outside/inside physical look
- personal visit or personal letter
- hiring higher-standard people
People will pay more for a better experience! Always remember that!
Image courtesy of stockimages at FreeDigitalPhotos.net