MYTH ONE: A LOYALTY PROGRAMME IS A SILVER BULLET TO SOLVE AN UNDIFFERENTIATED ‘ME-TOO’ PROPOSITION.
We love the concept of driving customer loyalty, but we’re not miracle workers. If you’re in a highly competitive, ‘me-too’ market then you need to make sure the basics are right. That starts with finding your point of difference. It could be in your purpose (your why) or in the way you operate (your how) or in your offer (your what). Sometimes the what is summarised by the classic four P’s of marketing: product, place, price and promotion.
What a well-designed loyalty mechanic or strategy can do is provide important reinforcement to all three layers. For example, loyalty mechanics can play a critical
