Consumers choose loyalty programs with the idea that it pays off. To some extent, it does. Nevertheless, loyalty programs lead to more shopping and spending.
Great for the vendor; not so great for the consumer.
Loyalty programs keep customers coming to the same retailer, buying the same products. It becomes habitual and consumers, therein, stop thinking about other options (which may be cheaper).
“Addiction is never a good deal.”
– Anonymous
Adults are inclined to follow their habits. Consumers find it hard to establish new choices and preferences. Marketers, therefore, take advantage of the necessity for auto-piloting through daily choices in life.
The habits consumers develop are strengthened by constant targeted Ads across multiple channels, keeping them hooked with endless offers.
While it seems as lucrative business strategy, it does have some ethical implications.
Loyalty programs are marketing TRAPS that consumers fall for. What may seem as a good offer usually turns into undisciplined, perpetual and frantic spending on “discounted” items.
As an Entrepreneur or a Small Business Owner, you don’t want to kick-start your business in controversy!
It is much safer to be customer-centric and revolve around solving problems and alleviating pain rather than hooking your customers with loyalty programs.
Make it your MISSION to always Solve Problems. That way, your customers will remain yours and you won’t need to TRICK them to keep doing business with you!
FromBuzzToScience 