Former president of Starbucks North American Operations and other companies that followed sustained growth trajectories, John B. Richards presently heads Blue World Voyages as CEO. A thought leader in his field, John B. Richards recently brought focus to the importance of protecting and expanding a company’s customer base in an era of “instant internet poaching.”
In his LinkedIn article “Where does your Loyalty Program stand? Is anyone safe?” Mr. Richards describes a situation in which digital communications have created a loyalty landscape in which offers, data, and connections define revenue success. That said, while email and the power of software make loyalty programs easy-to-implement they often wind up in recipients’ spam folders.
As Mr. Richards puts it, “a good loyalty program is a tool, not an end in itself” and does not take the place of well thought-out brand strategy. Long-term customers are won over by the actual services they receive on a consistent basis. The loyalty program is an ideal vehicle for channeling and activating existing loyalties in ways that engage consumers once the purchase cycle is completed.