As 2021 begins, most people and most companies have already formulated their New Year’s resolutions. Industry commentators, especially, use New Year’s resolutions for business as a way to predict and plan for how enterprises will succeed this year.
We at Reach have never been one to make such resolutions. But we do like to look at and dissect other people’s business resolutions for the new year. Here are some of what we’ve found.
2021 “Resolutions” to Strengthen Customer Loyalty
A loyalty platform provider recently posted their seven resolutions that marketers should consider to strengthen customer loyalty in 2021. And although they’ve got the basics down, we don’t exactly see eye to eye on some of their points. We won’t name names, so as to protect the innocent, but we do believe their ideas fall short of what consumers really demand from today’s brands.
Let’s first look at the New Year’s resolutions for business they have that we do agree on.
Adding more rewards and benefits? Check.
Evolving loyalty programs for faster earning and redemption? Of course.
Providing simpler member experiences? Definitely.
These moves, if executed properly, should add greater value for loyal customers. Naturally, that results in customer lifetime value growth for brands, as well.
We’re also all for their advice to leverage elements of good corporate citizenship into brands’ loyalty programs. Inviting customers to share and support worthy causes is a noble idea. The increasing significance of ethical and social values when consumers, especially the new generations, select their brands should be highlighted as well.
Establishing more communications with customers? That’s great, but it should depend on certain factors. Too often, we see brands communicate too much and too frequently with their customers.
Here’s a suggestion: instead of increasing communications, focus more on ensuring their relevance and timeliness. Base your communications on data and insights on what resonates more for each individual customer.
To be fair, their business resolutions for the new year do include listening to customers more, which is definitely a great move. But listening is just the start: what matters most is how the brand uses these customer inputs to deliver personalized content, experiences, and value.
What’s Missing from this List of New Year’s Resolutions for Business?
Our anonymous experts fail to consider some of the more relevant aspects of loyalty that customers demand from brands.
They fail to address consumer’s growing concerns regarding privacy and security. Discussions about navigating the increasingly complex and challenging regulations on the use of customer data were non-existent, as well. Furthermore, they failed to include on their list of business resolutions for the new year any suggestions to truly level the field that brands and consumers play on.
We at Reach have always believed that the key to long-lasting consumer engagement and loyalty is simple: loyalty, like communication, is a two-way street. Brands that ask for loyalty should also demonstrate the same level, or even greater, loyalty to their customers.
To achieve this, brands must be transparent and respectful in earning their customers’ trust through their actions. Brands should empower their consumers to take control of their data, including which brands they interact and share said data with. Paramount to brands should be the protection of the privacy and security of customer data, treating customers with respect and properly compensating them for sharing data.
How about you, reader. What do you think? Do you have your own New Year’s resolutions for business? We’d like to hear from you.
What do you think? Let us know your thoughts.