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Are loyalty schemes a good way to retain customers?

News by
Business
PRINT AND MARKETING GROUP
“In certain market. I’ve got no personal experience of these sorts of schemes, but I can see how they would influence people in the small to medium-sized enterprise arena. Personally though, I question whether they have a space in the corporate world. If we put a communications solution to some­one, it should be purchased based on the business benefit it brings the client. In my opinion, incentives can distort people’s judgement, which is what they’re designed to do, and I don’t think that’s got a place in the corporate arena.”
Phil Muller
Business development director
Adare
COMMERCIAL PRINTER
“Perhaps. For the public sector, I would suggest it is a big no go. This would not go down well with the bosses and even staff could feel intimidated by it. Staff may not place orders if they think that their bosses may consider the work is only coming here because they gain a personal incentive. For small businesses, there may be a way forward, especially with a large customer base of lower spending businesses. Further consideration at this level could lead to a workable scheme. Special offers with extra points for certain products could help to promote more profitable lines.”
Phil Wilce
Sales director
Formara
COMMERCIAL PRINTER
“Perhaps. Loyalty schemes have been used in many aspects of our lives and it is conceivable that it has a place in print. That said, as we all know, what is right for one customer or printer is not right for another. It’s therefore important that the decision whether to use a loyalty scheme, whatever its basis or reward mecha­nism, is considered carefully. I believe in the straight­forward custo­mer service approach to keeping customers. Provide a quality service and product to agreed timescales, while delivering value for money, and customers will have no reason to look elsewhere.”
Neil Arnott
Operations director
Horner Brothers
DIRECT MAIL PRINTER
“No. If it’s DM you’re doing, then at the end of the day, it will always be about response rates and return on investment. If your DM isn’t pulling in the returns it’s supposed to be, then you won’t be doing it again. Providing a loyalty scheme isn’t going to affect the quality of your print or your customer service and it won’t make customers respond better, so I don’t think it would work. The other thing is that a lot of blue-chip companies wouldn’t be able to accept that kind of reward.”
Lucy Edwards
Marketing director
Howard Hunt
Business