Question

Topic: Customer Behavior

Customer Loyalty; How Can Media Play A Part?

Posted by jlblue on 9/13/2010 at 4:54 PM ET 125 Points
What are some of your thoughts on a chemical company (product is fertilizer) using media to develop / maintain customer loyalty? Short background: the company has a yearly multi day event, flying in top customers (company pays), hiring top level keynote speakers, wine & dine, etc, with goal to keep customers "happy"& "Loyal".

Marketing Profs offered ideas with "10 Tips for Building Customer Loyalty" (https://www.marketingprofs.com/articles/2010/3720/10-tips-for-building-cust... ) . This one article highlights the key points of understanding the true purpose of marketing, never take loyalty for granted, tap into what customers want, and integrity leads to trust=> which leads to a relationship.

And The WSJ article "Why a Loyal Customer Isn’t Always a Profitable One" (Wall Street Journal, June 22, 2009, https://online.wsj.com/article/NA_WSJ_PUB:SB1000142405297020335390457414904... ) offered a perspective on customer loyalty, stating "knowing how customers feel about a company is a poor predictor of how they will behave toward the company." The article continued with the observation "The target audience for any company should be customers who are not only loyal in both attitude and action, but also profitable."

What about the rest of the year for this chemical company? How can media play a part in sustaining loyalty?
To continue reading this question and the solution, sign up ... it's free!
SUBSCRIBE
Or, SIGN IN

RESPONSES

  • Posted on 9/13/2010 at 5:25 PM Moderator
    I'm not sure I understand. Why the focus on media?

    I've spent a lot of time in the chemical industry, including agricultural chemicals, and I think there may be other/better ways to encourage/reinforce loyalty than spending money (and/or time) on media ads or placements.

    Of course, it depends on exactly who your target customers are, how the products are distributed, the product's positioning and value proposition, and a few more things. But to just zero in on media seems like the wrong way to start this exercise.

    And heed the lesson from the WSJ: Make sure your target for loyalty is a profitable segment. Otherwise you are really throwing money at the wrong thing.
  • Posted by Gary Bloomer on 9/13/2010 at 5:34 PM Member
    Hmm? What EXACTLY do you mean by "media"?
  • Posted by jlblue on 9/13/2010 at 5:57 PM Author
    Gary,
    Media, in this case, is refers to material a customer would read, watch, or listen too.

    Media could be custom media (private/white label podcast, blog, magazine, or video series) or could be commercial media (media offering information to a broader audience) where the company partners with the media company on a media product for select subset of the bigger audience.


    Michael,
    Media was focused on because that was of interest to several people in that industry. I am looking for some thoughts on ways media could be used in customer loyalty development.

    I agree with the WSJ article=> transactional (revenue/profits) metrics are important :)
  • Posted by Jay Hamilton-Roth on 9/14/2010 at 8:43 AM Accepted
    To add to your articles, also read this recent one from Seth Godin: https://sethgodin.typepad.com/seths_blog/2010/09/loyalty.html

    So, the media aspect is to tell stories about the loyal, and why staying loyal is smart (good for business & good for the "big picture").
  • Posted by jlblue on 9/15/2010 at 9:21 PM Author
    W.M.M.A. The Media would not step in unless there was value to them being involved. And example is TED ( https://www.ted.com/ ) is a "media" because they bring interesting ideas to a broad audience. To spread further "ideas worth spreading" they spun off TEDx: "TEDx is a new program that enables local communities such as schools, businesses, libraries, neighborhoods or just groups of friends to organize, design and host their own independent, TED-like events."
    * is TED, as media, increasing customer loyalty by making TEDx available to people low cost?

    Karen, reviewing competitors is being done. Other companies also offer specialized, exclusive, 2-3 day special customer events (some might say "boondoggle" ;).

    What is loyalty? That is what I am trying to discover: how media use can play a part in building and maintaining customer loyalty.

    Jay Hamilton-Roth Great link! this was very helpful to re: Karen's comment on "keeping the customer loyal".

    I'll keep this open for another day or two.

    thanks again to all,
    John
  • Posted by Gary Bloomer on 9/16/2010 at 9:16 AM Member
    Dear jlblue,

    Look, forget about media. Focus on solving people's problems.

    Media's got bugger all to do with customer loyalty. No one walks out of a shop and says "Wow! Great media. That press ad and TV spot really makes me loyal!" It simply doesn't happen.

    It's the feelings you give people when they obtain their desired outcomes and when you deliver over and above what's promised or promoted that creates the loyalty NOT THE MEDIA.

    I hope this helps.

    Gary Bloomer
    The Direct Response Marketing Guy™
    Wilmington, DE, USA



  • Posted by jlblue on 9/19/2010 at 3:52 PM Author
    Gary Bloomer:

    Based on your response, media (any media) would not play any part in developing or maintaining customer loyalty?

    Would that mean you would never recommend any spends on developing media (white papers, interview series, educational videos, informative web sites)? Would there be a scenario where you would spend on media development?


    I agree that the products/services that solve real problems is paramount.


    Thanks for input.
    John
  • Posted by Gary Bloomer on 9/19/2010 at 11:02 PM Accepted
    Dear John,

    "I agree that the products/services that solve real problems is paramount."

    Good, so why waste time cross examining me?

    "What is loyalty? That is what I am trying to discover: how media use can play a part in building and maintaining customer loyalty."

    Loyalty is the feeling in the mind and life of the customer that the brand, the product, can do no wrong, that the brand "knows" them, that the brand makes a promise and keeps it. Loyalty means never having to worry that the product or brand will let you down, that'll always be there: steadfast, trustworthy, dependable.

    Loyalty means that the brand will always know what you're feeling, thinking, wanting and looking out for.

    Loyalty is generated when brands not only meet peoples needs but when the brand then reads people's minds and gives them what they want, even if they don't need it. Here. think iPod; think, cell phone.

    You do not buy your way into people's hearts and minds this way with media, you present people with solutions to problems and you use the delivery methods you outlined to get your message across but media use does not create loyalty. Very few purchases are made until the buyer feels they know, like, and trust the seller.

    I hope this helps. And now, I need a lie down in a nice dark room.

    Gary Bloomer
    The Direct Response Marketing Guy™
    Wilmington, DE, USA

  • Posted by jlblue on 9/19/2010 at 11:23 PM Author
    Hi Gary,

    Sorry, I did not intend to offend you. I was trying to get a better sense on what your thoughts were for using media as a part of a loyalty campaign. Your response is helpful and certainly provides a perspective I need to keep in mind.

    Again, thanks for your time and input.
    John Blue
BACK TO TOP

Post a Comment

Related Discussions

Community Info

Top 25 Experts
(Customer Behavior)