Steve Yastrow

Buy 18, get your 10th free

In my video post yesterday I talked some more (…. ok, I’m a bit obsessed with this topic) about the difference between transactional loyalty and True Loyalty. Transactional loyalty is based on promotions and programs, (and the customer is only loyalty to the promotion or program) and True Loyalty is based on solid relationships (where the customer actually becomes loyal to your business and to her relationship with you).

This morning I went to get my car washed at Grand Prix Car Wash near my house.  As I got out of my car the guy with the vacuum handed me a ticket to take to the cash register.  I noticed that “You have 17 towards your 10th car wash free” was written on the bottom. I never noticed, but they type my license plate number in each time I enter the car wash and have been tracking my visits.

I asked the cashier to explain.  He gave me a form to fill out and said that my next car wash (the 18th) would be my 10th car wash free.

Do I even need to mention the easy ways Grand Prix Car Wash could turn this program from transactional loyalty to True Loyalty?  Ok, here are a few simple ideas …

• Tell employees that the business (and their work) depend on loyal customers who return many times.  Help them see that the loyalty program will help them have more secure jobs … and better tips.  Bring them in on the story!
• Keep track of progress for the customer.  Have the guy with the vacuum tell the customer, “Hey! This car wash is going to be free! Thanks for coming here so many times!”  If he misses it, the cashier can tell the customer.
• Give the free car wash on the actual visit where the customer “notices” he’s earned it, not on the next visit.
• Use the form only if a family wants to group multiple cars under one account.
• Think about loyalty as a human concept, not as a promotional concept.

On a related front, check out the thoughtful comment from Shane of Home Made Pizza Company on this post I wrote about their slip into “Get your 10th free” transactional loyalty.

Tweet This

Posted in Loyalty | No Comments »

I believe I am loyal to you

True Loyalty isn’t created because one business offers customers a better deal than their competitors offer.  True Loyalty happens when a customer has deep, meaningful, unquestioned beliefs about a company they buy from or a product they buy.

Today’s newsletter, I believe I am loyal to you, focuses on the connection between belief and loyalty.  I’d love your comments, below.  Do you agree with me?

Tweet This

Posted in Loyalty, Uncategorized | 6 Comments »

True Loyalty

I’d like to hear your comments on my latest newsletter, True Loyalty.

As I mentioned in my last post, I’m at the 2008 Loyalty Expo in Orlando, where 500 professionals are gathered to discuss the latest ideas in customer loyalty. My keynote speech this morning focused on True Loyalty, where I encouraged the audience to evaluate their loyalty efforts not by the number of transactions these efforts generate, but by how they create customer relationships.  I closed with a story from a recent newsletter, called Turning Customer Loyalty Upside Down, describing how loyalty in a We relationship is a two-way street.

Creating True Loyalty is especially important in tough economic times. Most companies have significant untapped potential in their current customer base.  (See my recent newsletter, The Apple Farmer.)

Is your company focused more on transactional loyalty, or are you heading in the direction of True Loyalty?

Tweet This

Posted in We relationships | 10 Comments »

What are your customers loyal to?

I’m preparing my keynote speech for the 2008 Loyalty, Incentive and Reward Expo, this Monday, 11/5, in Orlando.

Among the many issues I’m thinking about, ponder this one:  Are your customers loyal to your promotions, or loyal to their relationship with you?

(Do you think this is a major issue? I do.)

Tweet This

Posted in We relationships | 3 Comments »