The growing profusion of loyalty schemes that exist today really does challenge the value of such schemes.  As every day goes by, there are more and more ways for me to earn points, by shopping, getting a bank loan, riding a taxi, flying on a plane, booking a holiday…the list goes on.  And it isn’t just one organization in each space that has a loyalty scheme – every organization does – and the consequence is that I am a loyal member of a number of supermarkets, retailers, airlines, etc.   So what price loyalty?

Frankly in today’s world, organizations need to realize that the most critical aspect of their relationship with customers is nothing to do with points or rewards, it is about having a meaningful proper relationship.  As the old adage goes “if you want loyalty, get a dog”.  The future (and indeed the present) is about developing a true relationship with customers built on conversations with those customers.  Gathering data about customers that allows you to get real insights into their likes and dislikes, which then lets you tailor experiences to what that customer wants, which in turn builds the trust of those customers – that’s the value of a relationship.

Sure – building relationships takes time and effort – but the long term value and advocacy that come from those relationships beats a few points (that are often a fraction of 1c in value each) being sprinkled around here and there.  And recognizing that relationships are for life, rather than the short term transient view of loyalty schemes that kick you down a level if you are not loyal enough, whatever your past association.

So let’s stop talking about loyalty – and start talking about relationships – lasting relationships that will endure and where the value of the long term relationship is truly recognized.