Sunday, January 23, 2011

The difference between Membership and Loyalty

I often speak with corporate marketers about developing programs that increase the level of engagement between their customers and their business. Usually they end up saying something like "...we already have a loyalty program."

Well, a loyalty program is very different than a membership program.


Wikipedia defines a Loyalty Program as "...structured marketing efforts that reward, and therefore encourage, loyal buying behavior — behavior which is potentially of benefit to the firm."[


The focus of the relationship is one dimensional being only based upon 'buying' or simply transactions.

Membership is a whole 'nuther kettle of fish.

With membership, the customer also buys into the "mission" of the organization and is aptly '"rewarded" for this both by the organization as well as by his/her own good feelings of accomplishment. Membership uses the individuals need to be part of something bigger, to leave a legacy, to develop a loyalty that far surpasses anything a simple "loyalty program" can achieve.

This is what corporations should be aspiring to. Jimmy Buffet, KISS, Apple, the list goes on. These corporate brands have taken loyalty to the level of membership. Their customers 'identify' with them and THAT drives sales. The sales are indicative of the loyalty - but not the whole shabang.










6 comments:

  1. Thanks for sharing the valuable information,This is useful information for online learners


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  2. What happens with my loyalty card? How I can use it with bank terminal???? Please tell me, I want to know how I can fix this problem.
    Usually I use this payment system in the bank.
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  3. I think this article will fully complement you article. PLease continue publishing helpful topics like this. Regards, from Always Open Commerce

    ReplyDelete