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Here are some of the questions she asked, followed by my answers. - What should be the main objective in Loyalty marketing? In your opinion, do brands understand loyalty marketing?

The main objective of loyalty marketing is to build a one to one relationship between the customer and the company. Companies need to utilize database marketing strategies so that they categorize customers according to buying habits (recency, frequency & monetary) and reward them according to their buying habits. Treating all customers equal may sound politically correct but VIP customers need to be treated royally to keep their business. Staying in touch with customers builds loyalty because we are bombarded today with millions of advertising messages trying to pull us away from loyalty. Many brands today are beginning to implement loyalty programs by using contests and registration mechanisms on packaging to direct people to the internet. Once they visit the web, they are encouraged to register for more information and to begin a relationship. -Would you say that Loyalty Marketing also includes good branding as it serves as a pull factor for Loyalty rather simply than pushing Loyalty programs to consumers?

Good branding is the starting point for attracting the perfect customer for your type of business or service. Discounters use on type of branding and price becomes the "loyalty" factor. High end retailers and service organizations use branding and name recognition for attraction purposes and then continue the high end customer service to maintain loyalty. -What are the differences in Loyalty marketing for different industries? Is there a key identifier that is similar or unique between all of them?

Each industry has its own sales life cycle. A car is bought every 2-4 years for example where groceries are bought every week. So the loyalty marketing has to be geared toward the recency and frequency of purchase based on industry averages and guidelines. The key identifier is segmenting by buying habits and a higher level of customer care based on spending. -Which industry among hospitality, telecom, aviation, retail etc needs the most sophisticated program and which is the most difficult or demanding? Hospitality and aviation have the most sophisticated programs. They have become so commonplace and "expected" that when the airline or hotel begins to limit access, the customer complains that they are not giving them enough rewards! Retail rewards programs can vary from the simplest punch card to more sophisticated POS systems that track hundreds of elements, buying habits and demographics.

The sophistication is based on either a point system or a dollar for dollar system. (see the article on my website on Setting Up A Frequent Buyer Program).

-Which brand has done a great job in Loyalty? Which then do you think needs to work harder at loyalty?

I think airlines like Northwest and American have done excellent jobs in moving customers up the loyalty ladder from an occasional customer to a frequent flyer, using incentives, rewards and sales to get customers to fly more and stay loyal. In retail, because so many stores have gift card programs and rewards programs, it is difficult to differentiate between them. The smaller independent stores, who really need these programs to remain competitive usually, do not have the resources to compete with the major chains rewards programs, even though they give much more personalized service. This service then becomes the differentiation between keeping a loyal customer who is willing to pay more for value and service, than a customer who is just looking for a discount.

Therefore retailers and service companies must look at what they consider their "perfect" customer and target them, using rewards and discounts as an incentive to join their "family" then continuing to WOW them with exceptional customer service. Any industry selling a commodity which is hard to differentiate except for brand, is harder to maintain loyalty. Like everyday household items.

A great example of this - a success story is the King Arthur flour company which has built a mailing list online of over 100,000 evangelists who share recipes, articles and food tips with each other on their website. www. bakingcircle. com.

- In your opinion what are the things you look out for in a good loyalty campaign?

Good record keeping Staying the course - doing what you promise Giving real value for increased participation K.I.S.S. keep it simple Frequent communication Personalization based on customer preferences, beliefs, goals, etc.