LinkedIn’s most influential voice in Asia Pacific Media Agencies, Anthony J James, argues that the change in market access has paved the way to a shift in market behaviour. The rise of a hyper competitive global marketplace has meant that customers can more easily do research on brands, find better offers, and jump ship from the brand to which they had previously been loyal.
While corporates are dismayed that their customers have departed en masse, it really should not have been a surprise. It was a change in market access that paved the way to a shift in market behaviour.
And this is all because customer loyalty was not so much relationship-driven as it was convenience-driven. While membership-based loyalty programs were designed to address this, and to reinforce the relationship status, they have not been regarded as quite so valuable to consumers. And they have again been criticised by commentators for reducing profit margins on existing customers. Meanwhile, membership-oriented data on purchasing is being accrued in great volumes, and there is little – if any – discernible benefit to brands, because nobody is quite sure how to interpret the data. Again, this should not have been a surprise.
Loyalty programs have generally been poorly framed, poorly executed and poorly supported from a technical and data standpoint. Let me unpack all these assertions.
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