When trying to grow business, a natural tendency is to seek a strategy that finds more new customers. We see it all the time in the strategies employed by Triton Loyalty partners. They focus on increasing the numbers in the database. On the theory of increasing the number of people in your universe will lead to success. It seems logical, but often causes unintended damage.
Seth Godin’s blog recently shared a hierarchy of value for reaching consumers. He explains that focusing on turning strangers into friends of your brand is not only difficult, but likely to fail for a couple of key reasons:
1. They are difficult to convert. Changing personal preferences takes an extraordinary effort, time and expense.
2. Focusing on strangers increases the odds that you mistreat a true fan.
One true fan is worth up to 10,000 times that of a stranger.
Your loyalty program should place primary focus on finding your True Fans, learning about them, understanding them, delighting them and rewarding them. A secondary emphasis should be placed on identifying casual Fans and recruiting them to become True Fans. Let us help you with your strategy and tactics.
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