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	<title>Loyalty Truth Blog &#187; Brand Loyalty</title>
	<atom:link href="http://blog.hanifinloyalty.com/tag/brand-loyalty/feed" rel="self" type="application/rss+xml" />
	<link>http://blog.hanifinloyalty.com</link>
	<description>Straight talk and opinion about Customer Strategy, Loyalty Marketing, and Measurable Marketing</description>
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		<title>NBC&#8217;s Loyalty Disconnect</title>
		<link>http://blog.hanifinloyalty.com/2010/01/18/nbcs-loyalty-disconnect.html</link>
		<comments>http://blog.hanifinloyalty.com/2010/01/18/nbcs-loyalty-disconnect.html#comments</comments>
		<pubDate>Mon, 18 Jan 2010 04:17:23 +0000</pubDate>
		<dc:creator>TheDudeDean</dc:creator>
				<category><![CDATA[Communications]]></category>
		<category><![CDATA[Viral Marketing]]></category>
		<category><![CDATA[Word of Mouth]]></category>
		<category><![CDATA[ABC]]></category>
		<category><![CDATA[Brand Loyalty]]></category>
		<category><![CDATA[CBS]]></category>
		<category><![CDATA[Conan]]></category>
		<category><![CDATA[FOX]]></category>
		<category><![CDATA[I'm with Coco]]></category>
		<category><![CDATA[Leno]]></category>
		<category><![CDATA[Letterman]]></category>
		<category><![CDATA[Loyalty Disconnect]]></category>
		<category><![CDATA[NBC]]></category>
		<category><![CDATA[Social Media]]></category>
		<category><![CDATA[The Tonight Show]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=2094</guid>
		<description><![CDATA[Where is everyone’s Brand Loyalty?  Is it with NBC, Leno or Conan?  There’s no apparent popular effort to bring Leno back to the Tonight Show – but there is a whole lot of buzz on the Social Media web sites in support of Conan.  Simply put, NBC would be stupid to let Conan go. ]]></description>
			<content:encoded><![CDATA[<img style='float: left; margin-right: 10px; border: none;' src='http://www.gravatar.com/avatar.php?gravatar_id=53dfb664958ce97fbbc2bc75447fc935&amp;default=http://use.perl.org/images/pix.gif' alt='No Gravatar' width=40 height=40/><div class="tweetmeme_button" style="float: right; margin-left: 10px;"><a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2010%2F01%2F18%2Fnbcs-loyalty-disconnect.html"><img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2010%2F01%2F18%2Fnbcs-loyalty-disconnect.html" height="61" width="51" /></a></div><p>In case you&#8217;ve been going to sleep early these days and you&#8217;ve been missing all the buzz on both <a title="Conan Facebook Fan Page - I'm with Coco" href="http://www.facebook.com/imwithcoco" target="_blank">Facebook</a> and <a title="Twitter - I'm with Coco" href="http://twitter.com/#search?q=imwithcoco" target="_blank">Twitter</a> about what&#8217;s going on in the late night TV world,  NBC &#8220;Promoted&#8221; <strong>Conan O&#8217;Brien</strong> to the big chair of late night, <a href="http://www.tonightshowwithconanobrien.com/" target="_blank">The Tonight Show</a>.  But for some reason, they wanted to keep <strong>Jay Leno</strong> in the NBC fold and put him in a prime time 10 PM slot before the local news.  The reasoning for this is very simple.  Producing one show with one star is <strong>100 times cheaper</strong> than producing five quality prime-time shows with multiple casts, crews, directors and teamsters for five 10 PM prime time slots.</p>
<p><br class="spacer_" /></p>
<p>
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</p>
<div style="text-align: left; font-size: x-small; margin-top: 0pt; width: 512px;"><a title="from sustainabletips" href="http://www.funnyordie.com/videos/6d1caacad1/jay-s-2004-announcement">Jay&#8217;s 2004 Announcement</a></div>
<p><br class="spacer_" /></p>
<p>After a very short run, a simple domino effect is in play.  Leno &#8220;failed&#8221; in the 10PM time slot which led to lower ratings for the local news and lower ratings for The Tonight Show. NBC Failed to provide good shows before the local news. And now, it seems that rather than accept responsibility, the NBC execs have thrown the blame on Conan.</p>
<p>Was this Conan&#8217;s fault?  Maybe a little.  He didn&#8217;t ask about the prime-time line up and his lawyers didn&#8217;t go through his contract with a fine tooth comb.  Conan has a pretty <a href="http://www.businessinsider.com/henry-blodget-conans-lawyers-screwed-up-forgot-to-specify-tonight-show-time-slot-2010-1" target="_blank">iron clad contract</a> <strong>BUT</strong> they missed the detail of what time the new Tonight Show was supposed to start.</p>
<p>&#8220;I believe that delaying <em>The Tonight Show</em> into the next day to accommodate another comedy program will seriously damage what I consider to be the greatest franchise in the history of broadcasting. <em>The Tonight Show</em> at 12:05 simply isn’t the <em>Tonight Show.&#8221;  - </em>Conan O&#8217;Brien</p>
<p>&#8220;I left NBC prime-time the same way I found it: a complete disaster.&#8221; &#8211; Jay Leno</p>
<p>Considering what happened when Johnny Carson left the Tonight Show and the fallout between Letterman and Leno and now with the flip flop between Leno and Conan and back to Leno again, NBC is losing trust within the industry and Loyalty with its viewers.  And if NBC screws over Conan after what they did to Letterman the last go around, who&#8217;s going to want replace Leno AGAIN?  If Leno failed in a prime time slot why is NBC giving him a 30 min show at 11:35 going to help the Tonight Show or NBC?  What&#8217;s the point?  Carson didn&#8217;t do anything to compete directly with the Tonight Show when he left.  Why let Leno compete at all?</p>
<p><br class="spacer_" /></p>
<div class="wp-caption alignright" style="width: 154px"><a href="http://blog.hanifinloyalty.com/wp-content/uploads/2010/01/conan-imwithcoco.jpg"><img class="  " src="http://blog.hanifinloyalty.com/wp-content/uploads/2010/01/conan-imwithcoco.jpg" alt="I'm with Coco" width="144" height="223" /></a><p class="wp-caption-text">I&#39;m with Coco</p></div>
<p><br class="spacer_" /></p>
<p>This can either go down as the biggest disaster in TV history; bigger than when NBC passed Letterman over for the Tonight Show gig, bigger than when <a href="http://en.wikipedia.org/wiki/Star_Trek:_The_Original_Series" target="_blank">NBC Let Star Trek the original series</a> die in 60s, or it&#8217;s a fiendishly brilliant viral marketing plan to boost NBC&#8217;s lagging ratings (wishful thinking on my part, but we can hope right?).</p>
<p>Where is everyone&#8217;s Brand Loyalty?  Is it with NBC, Leno or Conan?  There&#8217;s no apparent popular effort to bring Leno back to the Tonight Show &#8211; but there is a whole lot of buzz on the Social Media web sites in support of Conan.  Simply put, NBC would be stupid to let Conan go. He would most likely end up on either Fox, ABC or, even worse CBS, where he could team up with Letterman and later on replace him on his show.  Everyone in Late Night is getting a leg up except for Leno and NBC.  Needless to say, <a title="I'm with Cooc" href="http://www.sirmikeofmitchell.com/imwithcoco/" target="_blank">I&#8217;m with Coco</a>.</p>
<hr size="5" noshade="noshade" />
<p><a title="The Dude Dean Tweets" rel="friend met" href="http://twitter.com/TheDudeDean" target="_blank">Dean Bairaktaris</a> &#8211; <a title="The Greatest Living American Dude" rel="friend met" href="http://blog.thedudedean.com/" target="_blank">The Greatest Living American Dude</a>:  Evil Power Digger, SEO Consultant, Social Media Maverick, Web Developer and Elite Space Monkey in Fort Lauderdale, FL. Think Green.</p>
<hr size="5" noshade="noshade" />
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		<title>Thanks Chris Brogan! We Do Need to Use The Data!</title>
		<link>http://blog.hanifinloyalty.com/2009/08/08/thanks-chris-brogan-we-do-need-to-use-the-data.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/08/08/thanks-chris-brogan-we-do-need-to-use-the-data.html#comments</comments>
		<pubDate>Sat, 08 Aug 2009 18:45:20 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Banking & Cards]]></category>
		<category><![CDATA[Brand]]></category>
		<category><![CDATA[Database]]></category>
		<category><![CDATA[Loyalty 201]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Airline Loyalty]]></category>
		<category><![CDATA[Brand Loyalty]]></category>
		<category><![CDATA[Chris Brogan]]></category>
		<category><![CDATA[Loyalty Marketing]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=1500</guid>
		<description><![CDATA[One of the blogs I enjoy reading is written by Chris Brogan. He&#8217;s got some interesting takes on social media and a huge following.
Today he stepped in the Loyalty Marketing sandbox with  his post The Myth of Brand Loyalty. I won&#8217;t recount the story here and encourage you to read it as well as [...]]]></description>
			<content:encoded><![CDATA[<img style='float: left; margin-right: 10px; border: none;' src='http://www.gravatar.com/avatar.php?gravatar_id=113ca9466981598d0d2f459cbcbf1d4c&amp;default=http://use.perl.org/images/pix.gif' alt='No Gravatar' width=40 height=40/><div class="tweetmeme_button" style="float: right; margin-left: 10px;"><a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2009%2F08%2F08%2Fthanks-chris-brogan-we-do-need-to-use-the-data.html"><img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2009%2F08%2F08%2Fthanks-chris-brogan-we-do-need-to-use-the-data.html" height="61" width="51" /></a></div><p>One of the blogs I enjoy reading is written by <a href="http://twitter.com/chrisbrogan" target="_blank"><strong>Chris Brogan</strong></a>. He&#8217;s got some interesting takes on social media and a huge following.</p>
<p>Today he stepped in the Loyalty Marketing sandbox with  his post <a href="http://www.chrisbrogan.com/the-myth-of-brand-loyalty/" target="_blank"><strong>The Myth of Brand Loyalty</strong></a>. I won&#8217;t recount the story here and encourage you to read it as well as take in the comment stream which follows. There are a few good ones and you can <a href="http://www.chrisbrogan.com/the-myth-of-brand-loyalty/?dsq=14493526#comment-14493526" target="_blank"><strong>read my take</strong></a> as well in which I reference how <a href="http://blog.hanifinloyalty.com/2009/03/05/airlines-take-flight-without-data.html" target="_blank"><strong>Airlines Take Flight Without Data</strong></a>.</p>
<p>To be fair, the airlines and Apple (Chris&#8217; example) aren&#8217;t alone. We see it all the time&#8230;.companies that have accumulated tremendous stores of data and are not using it to market efficiently and effectively. Or, as I witnessed this week in client meetings, there are banks with reams of customer satisfaction research, customer profile information, and transaction history that have studied it all, developed recommendations, but inexplicably have not put into action a measurable marketing campaign based on this information.</p>
<p>It&#8217;s not about <strong>capacity</strong>, it&#8217;s all about <strong>willpower</strong>. Corporate commitment to Customer Loyalty from the top down is needed for success and, where I can identify that commitment, <strong>I would personally invest</strong> in the related equity issues. These will be the winners in the market over the next 10 years.</p>
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		<title>Speedbumps on the Social Media Highway</title>
		<link>http://blog.hanifinloyalty.com/2009/06/18/speedbumps-on-the-social-media-highway.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/06/18/speedbumps-on-the-social-media-highway.html#comments</comments>
		<pubDate>Fri, 19 Jun 2009 00:03:07 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Social Media]]></category>
		<category><![CDATA[Thought Leadership]]></category>
		<category><![CDATA[Brand Loyalty]]></category>
		<category><![CDATA[Customer Loyalty]]></category>
		<category><![CDATA[Millennial Generation]]></category>
		<category><![CDATA[online loyalty marketing]]></category>
		<category><![CDATA[social media marketing strategy]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=1201</guid>
		<description><![CDATA[Speedbumps are everywhere.
They&#8217;re in my neighborhood, at the mall and also on the internet.  If you&#8217;re in new environs, speedbumps can by definition be mileposts of learning. Ever fly down the street in an unfamiliar area only to discover speedbumps the hard way? It&#8217;s not pleasant for you or your passengers and can do damage [...]]]></description>
			<content:encoded><![CDATA[<img style='float: left; margin-right: 10px; border: none;' src='http://www.gravatar.com/avatar.php?gravatar_id=113ca9466981598d0d2f459cbcbf1d4c&amp;default=http://use.perl.org/images/pix.gif' alt='No Gravatar' width=40 height=40/><div class="tweetmeme_button" style="float: right; margin-left: 10px;"><a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2009%2F06%2F18%2Fspeedbumps-on-the-social-media-highway.html"><img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2009%2F06%2F18%2Fspeedbumps-on-the-social-media-highway.html" height="61" width="51" /></a></div><p>Speedbumps are everywhere.</p>
<p>They&#8217;re in my neighborhood, at the mall and also on the internet.  If you&#8217;re in new environs, speedbumps can by definition be <strong>mileposts of learning</strong>. Ever fly down the street in an unfamiliar area only to discover speedbumps the hard way? It&#8217;s not pleasant for you or your passengers and can do damage to your vehicle depending on your velocity at impact.</p>
<p>Web 1.0 had its share of speedbumps, coming in the form of viruses, phishing schemes, and deals that seemed too good to be true from deposed Nigerian princes. Web 2.0 has a different set of annoyances and the more comfortable we get with building virtual networks and storing data in the cloud, the more vulnerable we will be to connectivity outages.</p>
<p>My modest goal in joining the social media landrush is twofold:</p>
<ul>
<li>Understand how to best incorporate the social media tool-set to communicate with customer loyalty program and frequent shopping club members</li>
<li>Reach the Millennial generation in an effective way to build brand loyalty</li>
</ul>
<p>If you are paying attention to the space, you will understand when I say that there are an inordinate number of social media &#8220;experts&#8221; and others who claim to be able to build brand awareness and increase customer engagement, all leading to greater customer loyalty for profit. If you&#8217;re not involved but observing from the sidelines, <strong>trust me</strong> on this one &#8211; they are ubiquitous to say the least.</p>
<p>In my book the &#8220;experts&#8221; you want to associate yourself with, and trust your future online loyalty marketing efforts to, are the ones who have been playing the game, taking some lumps, and learning by doing. I&#8217;ve been at it long enough to hit a few bumps and thought it was time to share a short list of cautions to consider as you build a <strong>corporate or personal social media marketing strategy</strong>:</p>
<ul>
<li>Concerning your <strong>blog</strong>, <strong>Facebook</strong>, and <strong>Twitter</strong>, add value with everything you post. The criticism that Twitter is a waste of time because all people do is update about their last meal shouldn&#8217;t bother you because you won&#8217;t be posting this sort of garbage (will you?).</li>
</ul>
<ul>
<li>Remember that everything digital has a life similar to a <strong>cockroach</strong>, i.e. longer than most of us will live. Be ever so cautious about posting anything that you might regret later. My SM muse told me at the outset to write,read, proofread, and do it again, before pressing the update button. You&#8217;ll sleep better and won&#8217;t get fired when your legal department reads your Facebook page.</li>
</ul>
<ul>
<li>Reveal personal information with the same care you take with your wallet. Would you let strangers <strong>look through your billfold</strong> while checking out at Walmart? Didn&#8217;t think so. Why then would you post highly personal information online in the interest of being more &#8220;human&#8221;? There are others ways to accomplish this goal.</li>
</ul>
<ul>
<li>Speaking of being human, do <strong>attempt to create conversations</strong>, don&#8217;t just blast information at the ether and expect people to respond positively. If you equate SM with digital public relations, you are missing out on better tools for that purpose, and are inviting attrition from your fans, followers and customers.</li>
</ul>
<ul>
<li>Balance openness and immediacy with <strong>common sense</strong>. You are fully within your rights to moderate comments on any blog you are responsible for, and the practice is highly sensible. You are not obligated to approve comments that have only tangential relationship to the topic or are little more than personal rants. </li>
</ul>
<p>This list is equally applicable if you are building a personal brand, establishing yourself as a subject matter expert for your firm, or are the corporate officer responsible for setting social media policy across your associate base.</p>
<p>Some brands have adopted the viewpoint that they will <strong>hold-fire</strong> on their social media marketing strategy until they have it all figured out. Surely this approach will mean that they will have less scars than yours truly, but I&#8217;ll also be willing to be that they will be <strong>so late to the game</strong> that they will wish they had started earlier.</p>
<p>Be cautious, use common sense, and learn from others. If you do this, you&#8217;ll <strong>achieve your objectives</strong> with social media and also be able to recognize a true expert when you see one.</p>
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		<item>
		<title>Airlines Take Flight without Data</title>
		<link>http://blog.hanifinloyalty.com/2009/03/05/airlines-take-flight-without-data.html</link>
		<comments>http://blog.hanifinloyalty.com/2009/03/05/airlines-take-flight-without-data.html#comments</comments>
		<pubDate>Fri, 06 Mar 2009 03:17:05 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Airline]]></category>
		<category><![CDATA[Brand]]></category>
		<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Database]]></category>
		<category><![CDATA[American Airlines]]></category>
		<category><![CDATA[American Airlines AAdvantage]]></category>
		<category><![CDATA[Bose QuietComfort]]></category>
		<category><![CDATA[Brand Loyalty]]></category>
		<category><![CDATA[Directv]]></category>
		<category><![CDATA[Frequent Flyer]]></category>
		<category><![CDATA[Loyalty Marketing]]></category>
		<category><![CDATA[MyCokeRewards.com]]></category>
		<category><![CDATA[Value proposition]]></category>

		<guid isPermaLink="false">http://blog.hanifinloyalty.com/?p=459</guid>
		<description><![CDATA[Deregulation of the US airline industry in 1978 was intended to create a competitive environment that would benefit the flying public and bring profitability to the airlines. With a number of bull and bear cycles under the belt, 2009 finds the airlines continuing to struggle for profits, and consumers once again being punished just for [...]]]></description>
			<content:encoded><![CDATA[<img style='float: left; margin-right: 10px; border: none;' src='http://www.gravatar.com/avatar.php?gravatar_id=113ca9466981598d0d2f459cbcbf1d4c&amp;default=http://use.perl.org/images/pix.gif' alt='No Gravatar' width=40 height=40/><div class="tweetmeme_button" style="float: right; margin-left: 10px;"><a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2009%2F03%2F05%2Fairlines-take-flight-without-data.html"><img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2009%2F03%2F05%2Fairlines-take-flight-without-data.html" height="61" width="51" /></a></div><p>Deregulation of the US airline industry in 1978 was intended to create a competitive environment that would benefit the flying public and bring profitability to the airlines. With a number of bull and bear cycles under the belt, 2009 finds the airlines continuing to struggle for profits, and consumers once again being punished <strong>just for showing up at the gate</strong>.</p>
<p>The airlines pioneered the loyalty marketing business, linking customer data, profitability measures, and the reservation system to change the way all consumer facing companies viewed their customer policies. Since American&#8217;s AAdvantage program launched in 1981, the airlines have awarded zillions of miles to loyal frequent flyers and have collected untold terabytes of customer data.</p>
<p>It is astounding to see that <strong>the data collected remains largely under-utilized</strong>. My latest mailing from American congratulated me on my status with them and included some offers marked &#8220;specially for you&#8221;. I was disappointed to see that the offers had no connection to my preferences and looked like this:</p>
<ul>
<li>Offer to purchase additional frequent flyer miles</li>
<li>Bose QuietComfort 2 headphones offer</li>
<li>Directv &#8211; switch and receive 10,000 miles</li>
<li>A credit card offer (actually two different ones)</li>
<li>A sweepstakes offer in connection with MyCokeRewards.com</li>
</ul>
<p>Not only are the airlines missing a significant opportunity to engage their best customers based on data they already possess, they are <strong>eroding their value proposition</strong> by adding fees to multiple aspects of the in-flight experience as well as their frequent flyer programs.</p>
<p>A struggling industry should leverage the lowest cost assets they own and use this low-hanging fruit to generate profitability as well as engender brand loyalty. Why not take steps to use the valuable data they have gathered over time.</p>
<p>The favorite subject for most humans to talk about is &#8220;me&#8221;. <strong>Flyers are waiting to spill the beans</strong> on their preferences and <strong>all the airlines have to do is ask</strong>.</p>
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		<item>
		<title>Mail-In Rebates: Are they Consumer Friendly?</title>
		<link>http://blog.hanifinloyalty.com/2008/10/04/mail-in-rebates-are-they-consumer-friendly.html</link>
		<comments>http://blog.hanifinloyalty.com/2008/10/04/mail-in-rebates-are-they-consumer-friendly.html#comments</comments>
		<pubDate>Sat, 04 Oct 2008 15:30:24 +0000</pubDate>
		<dc:creator>BillHanifin</dc:creator>
				<category><![CDATA[Customer Experience]]></category>
		<category><![CDATA[Loyalty Asterisk™]]></category>
		<category><![CDATA[Retail]]></category>
		<category><![CDATA[Brand Loyalty]]></category>
		<category><![CDATA[breakage]]></category>
		<category><![CDATA[Generation Y]]></category>
		<category><![CDATA[Loyalty Truth]]></category>
		<category><![CDATA[Mail-in Rebates]]></category>
		<category><![CDATA[Millennial]]></category>

		<guid isPermaLink="false">http://www.customergrowthllc.com/blog/?p=69</guid>
		<description><![CDATA[Watching the Vice Presidential debates, there was a lot of talk from both sides about bolstering the hopes and fortunes of the middle class. This struck a chord as I reflected on my shopping experiences that same day and realized that retail marketers rely on several promotional tactics that, in our opinion, aren’t truly designed [...]]]></description>
			<content:encoded><![CDATA[<img style='float: left; margin-right: 10px; border: none;' src='http://www.gravatar.com/avatar.php?gravatar_id=113ca9466981598d0d2f459cbcbf1d4c&amp;default=http://use.perl.org/images/pix.gif' alt='No Gravatar' width=40 height=40/><div class="tweetmeme_button" style="float: right; margin-left: 10px;"><a href="http://api.tweetmeme.com/share?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2008%2F10%2F04%2Fmail-in-rebates-are-they-consumer-friendly.html"><img src="http://api.tweetmeme.com/imagebutton.gif?url=http%3A%2F%2Fblog.hanifinloyalty.com%2F2008%2F10%2F04%2Fmail-in-rebates-are-they-consumer-friendly.html" height="61" width="51" /></a></div><p><span>Watching the Vice Presidential debates, there was a lot of talk from both sides about bolstering the hopes and fortunes of the middle class. This struck a chord as I reflected on my shopping experiences that same day and realized that retail marketers rely on several promotional tactics that, in our opinion, aren’t truly designed with the customer in mind.</span></p>
<p><strong><span>Extended Warranty Protection Plans, Same-As-Cash deals, and Mail-in rebates</span></strong><span> are all on the suspect list but Mail-In Rebates are the focus of this post. Designed originally as a deferred discount to distract consumer eyes from the “real” price of the product, mail-in rebates came into view years ago and continue to proliferate throughout retailing. Today, they have proliferated across product and category to the point where consumers can’t just rely on reading the “price” shown in big bold type, but need to look at the fine print to see what conditions apply to enjoy the stated price.</span></p>
<p><span>Two quick stories will have you nodding your head as they illustrate <strong>customer experience</strong> in mainstream retailing:</span></p>
<ul>
<li><span>Needing to replace a <strong>mobile handset</strong> for a family member, I called the “help” line to find out what deals were available. I was given the prices of specific phones that I was eligible to acquire and was told that a $75 early upgrade fee would apply. The phone we selected totaled up to $125. This price was in my brain when I walked into the wireless store only to learn that it was net of a $50 Mail-In rebate. End of story…..I paid $175 and walked out with a new handset and a rebate form to complete.</span></li>
<li><span>My 19” <strong>computer monitor</strong> was on the fritz and I had no choice but to shop for a replacement. Prices for 22” monitors ranged from $179 – 295. When my frugal Irish eyes looked more closely at the $179 model, I noticed that the price was net of a $50 rebate. Next to it was a more attractive model with bigger brand name. Since the price was $249, I struggled with the wisdom of paying a higher price and not having to take my rebate “homework” with me. End of story……I am still shopping.</span></li>
</ul>
<p><strong><span>The attractiveness of Mail-In rebates for marketers is summed up in one word: breakage</span></strong><span>. The burden of cashing in on the rebate falls solely to the consumer. Completing the paperwork properly, including the right documentation, mailing before the expiration date, and spending additional money for delivery confirmation stacks up in favor of the retailer. It is a game that can be played successfully by consumers, yet many of us don’t have the discipline to follow through properly. The fact that Mail-In rebates continue to be a popular pricing tactic is testimony that breakage does benefit the retailer.</span></p>
<p><span>From what I have learned about <strong>Millennial (Generation Y) purchasing behavior</strong>, I wonder if breakage rates will go sky-high across this 80 Million person group. Maybe the only hope for this upcoming generation is out-sourcing. I’ve seen pet-sitters and dog-waste services advertised in the local paper along with cleaning and yard services. Maybe bookkeepers need to add rebate processing to their list of services.</span></p>
<p><span>Responsibility lies on both sides of the transaction and consumers need to be educated and disciplined when making purchase decisions. <strong>Marketers might consider this Loyalty Truth</strong>: whether this is the type of relationship they wish to promote with their customers over the long term. As they continue to employ tactics that <strong>force consumers to be detail driven in order protect their interests</strong>, the chances of <strong>building enduring brand loyalty will be diminished with each transaction</strong>&#8230;&#8230;Bill Hanifin </span></p>
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