Loyalty Programs… Why Some Of Them Suck…

I was in a local office supply store recently to buy some $19 envelopes. I got to the check stand moments after someone who was buying a $29 computer bag. The checker asked if he wanted to buy a 3 year warranty on the bag for $6… he agreed. Total sale now rose to as much as $35. What happened was an example of “Big Dumb Company Marketing” and NOT the checkers fault in any way!

In order to buy the warranty he had to become a member of their loyalty program and fill out the application. This wasn’t simple. This required name, e-mail, address, user name creation and password creation along with some level of payment information. Then he had to complete the warranty information.  Then and only then could they complete the transaction. Total time was just over 5 minutes waiting for this to be completed. The entire time there were other staff members walking around seemingly oblivious to someone waiting for the only available person. My goal was to simply buy my envelopes and go.

Contrast that with the mindset of casinos who rely and profit heavily off of loyalty programs. Casinos go to great lengths and actually invest money (sometimes as much as $250 in gambling money) to entice you to join their program. Time to join from start to finish is about 1 minute. They know that every second you spend enrolling is time you aren’t gambling. The only reason casinos are open is so you can gamble. Then once you start to gamble they reward you some more. The most interesting part is they use a reward formula they have no ability to explain.    

Which of these programs accomplishes their goal? The long term goal is to make people want to return. From the empirical evidence I have casinos do a good job at this and based on only 2 people in line the office supply store not so much. People get dressed up to visit a casino in many cases and people dread the office supply store in many cases. How much of the success of Amazon can you place at the foot of an experience like this?

I imagine that most of the shoppers at any office supply store are in business or work for a business. Time matters as does the frustration level of the shopper. I did not leave happy and doubt most people in my shoes would have. The checker was doing exactly what she was trained to do and sold and enrolled. Love that. The management forgot about the customer experience and that the customer has choices. Casinos know you have choices and want you to choose them. Office stores maybe not so much. Focus on your customer and make it easy for them to give you money while you value their time.

My name is Steven Clauson.  I coach people who want help getting where they want to be. The people I coach are typically already taking action, getting results and ask what’s next and what actions to take to make an even greater impact. They aren't afraid to ask for help. How can I help you? What actions are you taking?  Those who have a plan and implement that plan lead the pack. Planning, preparing to win and taking appropriate action means you hear the word "YES" more than ever. Only if you one of the few willing to take action, do what's required and play full out are likely to hear the word yes more often. People hearing the word "YES" are winners on the field playing because they play full out and dominate. For these people results matter. Tired of results less than you know you can produce?  Call me at 916-230-0176 or visit www.assaultmarketing.com