How much is loyalty worth?

We’re hit with headlines of switching and saving but is there any value in staying loyal for you and the brand?

I have a handful of loyalty cards; one gives me a point for every pound I spend, another four and one gives me 10. This makes me more likely to shop there but this doesn’t prevent me from shopping around. I’ll take the perks most of the time, but if there is somewhere better or offers better value for money without the loyalty bonus I’ll pass.

One area I’ve decided not to stay loyal is banking. In my short financial life, I’ve had current accounts with Lloyds, TSB and Nationwide and a savings account with Lloyds, TSB, virgin, Natwest and Nationwide. Banks are really good at giving an introductory bonus – 5% interest for 12 months. I’ll take that, but if you’re going to drop it to 0.25% I’ll take my money to the next introductory bonus.

Energy companies have been in the news for dumping customers on poor value tariffs and not rewarding loyalty. I’ve not had an energy bill life for long enough to need to worry about switching.

But why don’t they want loyal customers? If bills are paid every month, they know they won’t need to deal with debt collectors, having loyal customers must be better than offering loss-making deals to attract new ones? Where did the desire for loyal customers go?

I’ve been with my mobile phone contract provider and I’m currently on a better deal than if I was to join today, so they value my loyalty – the service needed by me and a new customer is pretty much the same so why not offer a loyalty discount? Or in this case, keep the price low and not put it up in line with inflation. Although some on a contract which they use to pay off their phone can sometimes be left on a higher bill after paying for the phone – so be careful out there?

In lots of sectors there is a war for customers, with brands vying for ways to attract people in. Wouldn’t they be better concentrating closer to home and keeping current customers loyal so they don’t need to worry about a shiny introductory offer pulling them away?

I’m sure you can all point to countless examples of where you were brought in on the cheap and then saw the price hiked up – TV, insurance, breakdown cover. But do any of my followers know of a particular company or sector that truly value their longest serving customers the most?

2 thoughts on “How much is loyalty worth?

  1. I drives me mad when I purchase something and the shop assistant asks if I have their loyalty card. 1) Cue the look of surprise when I say I don’t. 2) Cue the sales pitch to get me to sign up. I know they’re only doing their job, but give me a break. It’s even worse when they do get someone to sign up, then we have longer to wait until we’re served. Rant over!

    Like

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