Monday, March 12, 2007

Loyalty can be bought for less than you think

I was feeling guilty the other day about all of the people that have done nice things for me, whom I have forgotten to thank. So, after my meeting, I walked into a Hallmark store. I’ve never expected to have a life-changing loyalty event.

At first, I was unimpressed. While the place was stocked to the ceiling with cards, it was also predictably overrun with Valentine’s Day merchandise. But, this story isn’t about variety vs. duplication, so I digress. After picking out a stack of cards, I proceeded to checkout expecting my pile of appreciation to cost at least $10. The owner asked if I had a “gold sucker card” or something like that. Realizing this was yet another scam to get me to “pay to save” or a grab for my personal data, I quickly told her that I had no interest in her club. I mentally accepted that my $10 of cards were now likely to cost $12. It cost $35. A bit in shock, I stammered, “Well, I guess I have a lot to be thankful for!”

But this is where the real story begins. The shopkeeper looked up, smiled brightly, and said, since you purchased more than $30 today, you can have one of those lovely Valentine’s day coffee cups behind you for free. Incredulous, I turned around and did indeed see a display of lovely “love mugs" with a prominent sign describing the promotion. And then, my natural cynicism was vindicated; I noted the bold starburst on the sign that read, “a special gift for our gold sucker members” (or something like that anyway). Alas, it was clear…this was another attempt to get me to join Hallmark’s evil cult of chronic card givers. I resolved myself to resist the allure of the free love mug and maintain my independence. I told the smiling gray haired lady behind the counter, “but I told you I don’t have a Gold Sucker card.”

And that’s when the loyalty happened…

She said, “Oh sir, I insist. I appreciate your business and think you deserve it. I also gave you the club discount. Please take the mug with my compliments.” My jaw dropped. And suddenly, what had previously had been a chintzy chotchke, became an objet d'art. I leapt for the mug and said, “Thank you. Thank you. I’ll buy all of my cards here.” And I meant it.

Now look, the last thing I need is another novelty coffee cup. But at that moment, I felt like I had won the lottery. I was a valued customer! I had a gaudy novelty mug to prove it! And take note Walgreen’s, Kroger, Safeway, and Wal-Mart…I will be buying all of my cards there from now on. Is that a big threat to these behemoths’ business? Of course not. But, imagine how much loyalty any retailer could develop is they applied the same philosophy?

A fine Category Manager I know, once said, “Why don’t we give our customers a pie once in a while? We’re probably going to throw half of them away anyway, and at least then we could make a few shoppers feel special.” [I’m paraphrasing of course. Category Managers are always more eloquent that this.]

HE WAS RIGHT! Why don’t retailers do that? Do I want a pie? No! But I didn’t want a novelty mug either! I want what most shoppers want…I want to be appreciated! And there is no better way to show someone you value them than with a smile, a thank you, and the occasional token of your sincerity.

So, retailers,…use your cards, analyze the data, send coupons, and do all the other wonderful things you do with your loyalty programs. But, don’t forget your shoppers are people, and a piece of pie might get you a lot more loyalty than that piece of plastic you call a loyalty card.

1 comment:

Unknown said...

Bart - thanks for being a cynic AND a great marketer. It doesn't always come in the same package. Thanks for sharing. Doug

Doug Bruhnke
www.DataPreserve.com
Scottsdale, AZ USA