Loyalty is a TWO WAY Street

Loyalty is a TWO WAY Street 2

This morning, I’m watching TV. A Cadillac commercial comes on. At its conclusion, an announcer proudly exclaims, “Non-GM owners can save $1500.”

Huh? If I’m a GM brand advocate, you don’t want to reward me?? I can’t get the same $1500 discount that a Ford or Hyundai owner can get??

Contrast this with Netflix’s recent announcement that NEW Netflix customers will soon be paying $1 or $2 more for monthly subscriptions. The cost for Netflix’s loyal customers will remain the same. If I’m Netflix brand advocate, I might want to tell my friends immediately that now is the time to sign up for Netflix.

As a scientific marketer, I understand the logic of providing specified offers to specific individuals. (Although I have even more respect for brands that have the fortitude and value proposition that can ensure that their best customers always get the best value.) Yet there is something unseemly about a brand’s public proclamation that non-loyal customers get better deals.

In Q1, Cadillac’s domestic revenues were down 7.9% and Netflix’s revenues were up 24.5%.  Are the aforementioned offers the cause? No. But brands that value their loyal customers certainly get more loyalty in return.

It should be noted that over the past few years, Cadillac sales have been growing. They are doing a lot right. So hopefully Cadillac knows how to make a U-turn when it comes to customer loyalty.

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