Monday, 21 May, 2007

First mistake

It’s common for loyalty programmes to invite for membership on the basis of a particular purchase going over a threshold. In fact, most programmes offer the membership free, as a sort of reward for making a big purchase.

It’s equally common for those members to never come back. At any rate, most never use the card again.

This is hardly surprising. A cursory examination of any loyalty programme data will show that big purchases are rare events (otherwise they’d not be ‘big’) even among ‘loyal’ customers.

Why then do marketers continue with this wasteful practice, more so when it creates completely unrealistic expectations? (Why so may inactive members? Because they are accidental.) Isn’t a paid programme a better option, from every point of view?

No comments: