Thursday, December 23, 2004

Yours truly?

“Awards-for-loyalty” programs: Are they worth the trouble? Matt Hassan from CapGemini has a good point: in a recent commentary in CRM Magazine he mentions that “customers who stay for rewards leave for rewards”, and that companies should give incentives to customers according to their “inherent loyalty propensity”, as the most loyal customers are the ones that have a higher implicit vendor switching cost, and therefore do not require additional motivation to stay.

We should add something: if a group of customers doesn’t go with the competition because of the cost of switching, it does not mean they don’t deserve good service.

Remember the days before cell phone number portability?