Peloton’s growth plan will annoy its loyal customers

Twenty-three years ago, Fred Reichheld wrote in the book “The Loyalty Effect: The Hidden Force Behind Growth, Profits, and Lasting Value” (no affiliate link) that firms should be wary of aggressive customer acquisition initiatives. He warned firms that: “Winning more and more new customers could slowly put you out of business” (page 89). This is … Continue reading Peloton’s growth plan will annoy its loyal customers

The interplay between face to face contact, e-mail and timing in driving up sales of loyalty schemes

The question of how best to contact high value customers, how often and when, is very important for customer relationship managers, particularly when it comes to the sale of loyalty-inducing schemes such as season tickets or membership schemes. Season tickets or annual memberships are an important source of revenue for many service-based organisations such as … Continue reading The interplay between face to face contact, e-mail and timing in driving up sales of loyalty schemes

When loyalty programmes backfire: loyalty, entitlement and complaints

Disappointed customers complain. And while really loyal customers may be more forgiving that others, when they do feel disappointed and complain, they are particularly difficult to recover. These general truths of business make it particularly important to understand disappointment in loyal customers. Researchers Xiaofei Li, Baolong Ma and Chen Zhou conducted a study about … Continue reading When loyalty programmes backfire: loyalty, entitlement and complaints

Relationship Marketing in action

Remember that post about gratitude in marketing, and its impact on customer loyalty? Well, I have just seen it into action. My daughter e-mailed the owner of a small business that offers rabbit boarding services, asking whether they could look after her pet rabbit while we are on holidays. This is the reply that she … Continue reading Relationship Marketing in action