Has Loyalty Become a Bad Word?
filed in Loyalty Futures, Thought Leadership on Apr.07, 2010
Neil Rogers was the original “shock jock” in South Florida radio. Not being a fan, I was in a clear minority as he stacked up top ratings year after year before retiring in 2009.
Part of Mr. Roger’s shtick was living in the gray area of FCC regulation, and he was reminded from time to time by his employer that there are 7 dirty words that can’t be spoken on the air.
Rick Barlow was a man of different fiber. Mr. Barlow was the founder of Frequency Marketing, a company conceived and developed as the Loyalty marketing business unfolded.
Barlow had a laser-like focus on perfecting the art and science to “identify, maintain, and grow best customers through long term, interactive, value-added relationships”. That phrase is emblazoned on a coffee cup still in my cupboard, a souvenir from my days in Barlow’s Cincinnati office.
The evolution of the marketplace has placed pressure on “Loyalty” and how it is defined. Use the “L” word in a meeting and most people instantly think of points and miles, selling the concept short.
Has this made “Loyalty” a dirty word?
I’m not dropping the L word, but I do prefer to talk with clients about the need for a well planned and executed Customer Strategy. The broader term remains founded on the blending of behavioral and attitudinal data to create profitable behavior change across a portfolio, customer base, or market. The advantage of a Customer Strategy is that it allows for forms of execution well beyond points or miles and can be effective using no currency at all.
To underscore that I am not the only one concerned about being labeled the “points” guy, I was witness to a lengthy discussion at Templeton College where a room full of loyalty “experts” debated whether they should use different language to describe what they do. Suggestions ranged from “Customer Management” to “CRM” to “Relationship Management”, but in the end the group agreed it was becoming overly narcissistic and stuck with Loyalty.
Today, the idea of creating enduring customer loyalty to a brand is a lofty goal. Mark Johnson, CEO Loyalty 360 was recently interviewed by Fox Business on the subject and I have included the video here.
As Mark mentions, it is well within the capability of business to use its data intelligently to build relationships to give it an edge over competitors using pricing and discount strategies.
Loyalty lives, it’s just a lot more complex to deliver these days.









April 8th, 2010 on 12:35 am
Rather than redefining an entire category of corporate philosophy ‘behaviors’ by changing the heading of loyalty without changing your attitude to also include thoughtful service to a particular business community, why not define clear branded business ‘descriptions’? In other words, loyalty remains loyal ‘gifts’ (not rewards) to clientele (a segmented client-base), and customer strategy becomes reward-aside.
Rather than attempting to train a market through management of repeat offenders, so to speak, isn’t it better to offer appreciation toward boastful capture? Word of mouth should articulate, and pontificate, not resonate.
April 24th, 2010 on 12:54 pm
[...] Neil Rogers fue el original "Jock" choque de radio en el sur de la Florida. Al no ser un fan, yo estaba en una clara minoría como él apilados año tras año calificaciones arriba antes de retirarse en 2009. Parte de Roger shtick Sr. vivía en la zona gris de la regulación de la FCC, y se le recordaba de vez en cuando [ . . . ] URL del artículo original http://blog.hanifinloyalty.com/2010/04/07/has-loyalty-become-a-bad-word.html [...]