Is loyalty dead? Three interesting articles I’ve read today:
Is loyalty dead? Three interesting articles I’ve read today:
1. We’re marketing for a digital world, not doing digital marketing.
A quote from an article caught my bleary eyes this morning.
The Chief Executive of the world’s largest alcohol business, Ivan Menzes of Diageo exclaimed that 'We're marketing for a digital world, not doing digital marketing'. It’s an attitude that I wholly subscribe to.
The article went on to talk about Diageo’s forecasted return to sales growth being largely due to a shift from loyalty building in its marketing to recruitment that is less focused on single brand campaigns.
Menzes went on to say; “Traditionally, our marketing was focused on strengthening loyalty amongst our consumer base, but consumer habits have changed and consumers have more choice. Now we use great marketing to constantly recruit and then recruit them again.
Promiscuity. Is loyalty dying?
The article made me think and reflect on a second. Actually it’s a piece of superb research undertaken by McKinsey & Company.
2. The customer decision journey and two types of loyalty
If any of you have studied marketing or business studies, you’ll be able to reflect back to the old models of consumer behaviour and consumer decision. Funnels, anyone?
McKinsey argues that Consumers are moving outside the purchasing funnel—changing the way they research and buy your products. And, if your marketing hasn’t changed in response, it should. It’s a compelling read and certainly aligns with Diageo’s strategy of having to recruit and re-recruit.
It argues that loyalty exists but that loyalty isn’t a black or white state…not that it ever was.
When consumers reach a decision at the moment of purchase, the marketer’s work has just begun: the post purchase experience shapes their opinion for every subsequent decision in the category, so the journey is an ongoing cycle. More than 60 percent of consumers of facial skin care products, for example, go online to conduct further research after the purchase—a touch point unimaginable when the funnel was conceived.
It’s a compelling read, even with a fuzzy head on a Friday morning (because some eejit thought that 3 glasses of wine on a Thurs night was a good idea). Ok, maybe a strong coffee first.
3. Inside the customer journey
Loyalty, customer experience and the customer journey go hand, in hand…in hand.
This article will not be a revelation but it’s good to reflect on.
The story of an exemplary customer experience is not just about how customers view your company during direct interactions with your business, such as the “show” that your customer service department performs. From the moment your customers “buy a ticket,” they begin assessing the quality of their experience. How easy was it to find what they wanted? Were your employees friendly? How simple and convenient were the sales and service processes? Should they return?
https://www.cloudsherpas.com/cloud-advisory/inside-the-customer-journey/
