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Are subscriptions a measure of Customer Loyalty?

Sandy's got a point about Customer Loyalty. Is having 3 million subscribers to a 'loyalty card' a measure of real loyalty? Does it actually transalate into a repeat purchase?

After a harrowing shopping experience that saw me huff and puff my way through a Big Bazaar store that had stocked up on rotten vegetables among other things, I reach the 'priority' counter where I was told, there's no priority for a fellow like me just because I have a Big Bazaar-ICICI card. Slinking away to join the mile long cash counter crowd, I winced at the decision to come to a Big Bazaar store on the weekend.

In fact, tell you what, to hell with my Big Bazaar card, I need to shop elsewhere. Coming back to Sandy's point, my Big Bazaar card has turned me bitter. Now that's far away from 'loyal'.

What say you?

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Sandy said…
Well, now you know where not to go!
However just to add: Almost every other company these days have some kind of loyalty program.But are the benefits of these programs communicated to the customer periodically? I dont think so.
Take Jet Airways for instance, are the frequent flyer miles accumulated communicated in a proper manner?No.Similarly for very many different companies.
However there are some firms which go out of the way to make sure the customer is aware of what he has earned and how he can benefit.eg: AMEX, HSBC, SHOPPERS STOP..When this happens, is when the customer feels important, and feels the need to use the facility or go back to a particular outlet again.
Feb 20, 2008, 11:55:00 AM
Eve said…
Most loyalty progs. are literally shoved down yr throat. however one harrowing exprience with an outlet does irrepairable damage to their image & customer loyalty (even i avoid Big Bazaar & after reading Prof.'s testimony, i can't imagine ever stepping into one again)and Indian marketers are just begining to realise the importance of building the right image which goes beyond their advertising. Shopper's Stop is a good case study on what a brand should do. they are the only brand who charge their customer for the loyalty prog. and it gives them more revenues than combined profit of many other brands. what makes it more interesting is that in India where most people are looking for a freebie (thus, the flood of free cards in various categories), shoppers stop actually managed to make indian cough up few bucks for a card that most customers dont even use.
Feb 20, 2008, 2:33:00 PM
Eve said…
Most loyalty progs. are literally shoved down yr throat. however one harrowing exprience with an outlet does irrepairable damage to their image & customer loyalty (even i avoid Big Bazaar & after reading Prof.'s testimony, i can't imagine ever stepping into one again)and Indian marketers are just begining to realise the importance of building the right image which goes beyond their advertising. Shopper's Stop is a good case study on what a brand should do. they are the only brand who charge their customer for the loyalty prog. and it gives them more revenues than combined profit of many other brands. what makes it more interesting is that in India where most people are looking for a freebie (thus, the flood of free cards in various categories), shoppers stop actually managed to make indian cough up few bucks for a card that most customers dont even use.
Feb 20, 2008, 2:34:00 PM
Manasa said…
Well...like u mentioned in one of ur classes...may be you aren't one of their 20% customers who generate 80% revenues..also i've noticed in some places, at times, it's personal contacts that gets things done faster than being a loyal customer..
Feb 21, 2008, 11:16:00 PM
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