REWARDING BEST CUSTOMERS

Relationship marketing and target marketing aren't the only buzz words under the umbrella of direct marketing. The latest is loyalty marketing. Loyalty marketing takes relationship marketing a step further -- it's a way of rewarding your best customers, not merely the ones you want to continue a relationship with.

But the innovators of loyalty marketing say companies must be careful to not use loyalty marketing programs for promotion. They are relationship-building programs, and they should not be used to prospect to existing clients. Rather, they should be used to make those special clients feel uniquely appreciated.

The most aggressive implementer of loyalty marketing programs could well be the airline industry. Many airlines have found that by measuring the number of miles frequent fliers fly, they can reward their best customers with special bonuses beyond the traditional promotions. For instance, giving a preferred customer a gift certificate to a favorite restaurant in their destination city may add to the customer's enjoyment of their experience with the airline. The doting sponsor will be thought of even more loyally in the mind of the appreciative customer because of the extended hospitality.

Successful loyalty marketers segment out their preferred patrons by attempting to measure their "degree of involvement" with the product or company. Obviously, this is easier to do with more highly-involved purchasing decisions like major appliances, automobiles, financial services, and travel and leisure expenditures. The important thing to consider when determining what the "premium" will be is what this specific audience would consider to be an appreciative gift, as opposed to what they consider to be an appeal for more frequent patronage.

For example, a car dealership in New England sent a dozen long-stem roses to the home of a woman who just bought her first new car from them. In another case, a travel agency included $50 worth of complimentary travelers checks in the boarding pass jackets of a honeymoon couple. The agency was later deluged with requests from honeymoon planners. A little creativity had helped it create its own market niche.

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