If your customer retention strategy relies on “buying” loyalty with rewards, rebates, or discounts, it is coming at a high cost. And these days, it could also mean that you’re giving up something priceless: your relevance.
Marketers Need to Stop Focusing on Loyalty and Start Thinking About Relevance
The days of “buying” loyalty with rewards or rebates are over.
March 21, 2018
Summary.
The era of “loyalty” marketing is coming to a close. Instead, consumers are increasingly making their buying choices based on the relevance of a product to their rapidly-evolving needs. To achieve this kind of relevance, companies need to become like more like living businesses, building and sustaining symbiotic ties with their customers as if those relationships were with a concierge, butler, or friend. In this piece, the author offers three principles to guide marketers in this new reality: First, go outside your comfort zone. Second, timing is everything. Finally, don’t be loyal to the status quo. Now more than ever, businesses need to focus on staying relevant to their customers — or risk becoming obsolete.
New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.
Learn More & See All Courses
New!
HBR Learning
Marketing Essentials Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Marketing Essentials. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to communicate with your customers—strategically.