Loyalty. Are These Companies Worth Your Time?

What is the definition of customer loyalty? Customer loyalty can be defined as a customer's

consistent choice of a particular product, brand, or service over its competitors. Customers

tend to become loyal to a brand because they have had a positive experience with its products and prefer that brand over others. Many factors contribute to why a person may be loyal to a

particular brand, including the quality of the product, the level of customer service, or other

unique amenities the brand offers.

Brands benefit significantly from having loyal customers because these customers are more

likely to make repeat purchases and recommend the brand to others. One major advantage of having loyal customers is their contribution to the long-term success of the brand, as they are likely to stay with the brand even when alternative options are available.

Another way that brands maintain customer loyalty, aside from the quality of their products,

is through loyalty programs. When customers consistently shop with a brand after signing up

for its loyalty program, they can accumulate points and potentially receive prizes and perks as rewards.

I know for a fact that I have signed up for multiple loyalty programs with different brands

that I love, and sometimes it can be challenging to remember which brands I have accounts

with. According to an article written by Dan Kowalewski, Jessica McLaughlin, and Alex J.

Hill, blockchain technology is set to transform customer loyalty programs. Blockchain, the

technology behind Bitcoin, allows customers to consolidate all their loyalty points from

different brands onto one platform. I think this would be extremely beneficial for me and

other customers who participate in loyalty programs.

From a marketing perspective, customer loyalty not only helps promote a brand, but it can

also support the brand’s expansion into new markets. One of the benefits of earning points

through a loyalty program could be the opportunity to try new products early. If loyal

customers respond well to a new product, it’s likely that the product will be received

positively by the general public, ultimately benefiting the company.

While there are many positive aspects of customer loyalty, there can also be negative effects

for members of loyalty programs. According to an article titled “Why Customer Loyalty

Programs Can Backfire” featured in the Harvard Business Review, “When loyal members

encounter service failures—shipping issues, problems with returns, stockouts, and the like—

they get more upset than customers who are not members of the program.” I can personally

relate to this statement. As a loyal customer, I almost feel a sense of entitlement to exceptional service from the companies I frequently shop with. However, I understand that

no company or program is perfect, and issues are bound to arise. Although it can be annoying and inconvenient at times, it’s ultimately understandable.

When it comes to choosing the right companies to sign up for loyalty programs with, make

sure that you really take your time and see if that is a company worth being loyal to because

in the words of my VERY Bahamian mother, “If you don’t listen, you ga feel”