THE INCREDIBLE
LIGHTNESS
OF LOYALTY
TODAY’ S CONSUMERS DO NOT PLEDGE LIFELONG LOYALTY TO A BRAND – THEY WANT SUPPLIERS TO COMPETE FOR THEIR BUSINESS. TAMARA OBERHOLSTER UNPACKS LOYALTY MARKETING.
According to Peter G Wray, founder and chairman of Loyaltymatters. com, a UK-based independent loyaltymarketing consultancy, there are three core reasons why loyalty marketing matters.
First, in the era of globalisation, brands are no longer competing within regional or national boundaries.“ Consumers’ buying habits are now international, and this is particularly true of millennials,” says Wray.“ The old habits of buying from a particular department store or grocery group, while they are not broken, are subject to a lot more competitive pressure.”
For example, a person in Johannesburg wanting a new smartphone may not just canvas local technology stores, but search for the best deal online, which might be from a national or even international supplier.
Furthermore, notes Wray, the economic shocks of the last decade and increased financial pressure consumers face mean people are seeking value for their money, and purchase decisions are far more considered.
26 REWARDS & LOYALTY SA