Spoilt for choice: loyalty schemes as a means to keeping customers coming back

As the saying goes, variety is the spice of life, and from a 21st century consumer’s point of view, nothing could be closer to the truth. Never has choice and variety been so abundant; so much so that it is now being argued that there may even be too much choice!

And there may be an element of truth in this. Too much choice can cause a selection headache for customers; how do they choose one product over another, and what criteria do they use?

As dizzying as the variety may be, the bottom line is that too much choice is better than none at all, and healthy competition will ultimately favour the consumer as they will normally end up paying less for a product.

This abundance of choice has led many of the world’s leading organisations to develop customer loyalty schemes, which reward consumers for not shopping elsewhere. One of the most prominent loyalty schemes to emerge is the frequent flyer or ‘air-mile’ programme, where customers who are enrolled in the programme accrue ‘points’ in relation to the distance flown with a particular airline. These points can then be redeemed at a later date for free air travel or for other goods and services.

Similarly, hotel rewards are now becoming common place, providing an incentive for customers to return to the same hotels time after time. Potentially, any frequent social or business traveller could be accumulating a considerable amount of benefits from doing no more than what they would be doing anyway.

Furthermore, it’s now possible to earn both hotel points and airline miles in a single stay at a hotel. By taking the loyalty programme concept this stage further, customers are now in an even better position than ever, helping them to build their flight and accommodation benefits faster. Thus, it’s easy to see why loyalty schemes are so popular. They are generally free to participate in, and as far as the consumer is concerned, they are being rewarded for no extra effort on their part, whilst the company builds a loyal customer-base. Everyone’s a winner.

So, it would seem that variety is indeed the spice of life. Not only does it provide the consumer with real choice, but it also encourages companies and retailers to give something back to the consumer. The beauty of hotel loyalty schemes is that they reward the customer simply for staying away from home, showing that it really is possible to get something for nothing.

Article Source: http://www.theukarticledirectory.co.uk