The Loyal vs. The Full-Price Shopper

Has anyone else ever noticed the hypocrisy in "loyalty" or "rewards" systems? The idea sounds fine...I shop with you so often that you give me incentives...so that I will shop with you even more often. In most cases, you have to spend an awful lot to begin getting rewards or points that can be used for anything useful. Which means that if you're getting a bunch of points you are, by nature, incredibly loyal to that brand. So why do I suddenly feel like an outcast when I finally try to cash in on this great new relationship we share? In my opinion, it shouldn't be harder or take longer to get what I need than it would ordinarily take when I'm paying full price for something.

I should start with a positive example, Dick's Sporting Goods. This is one of my favorite places to shop, and has the easiest rewards program I've ever used. The best part: you don't have to spend a ton to begin receiving some pretty nice incentives/discounts. The next best part: I don't really have to keep track of anything on my own. The system is nicely integrated with their point of sale system, so even if I can't produce a key fob or a rewards card, they can look it up at checkout so I get the most out of every purchase I make. In my case, I can honestly say that every major purchase I have made at Dick's Sporting Goods has resulted in points accrual or some other incentive that has led me back to the store for a follow-up purchase. For any retailer, this is the dream.

In contrast, I recently attempted to redeem American Express Rewards points for a Hertz Car Rental voucher. In the first attempt to view my account balance, something was wrong with the site. It gave me an 800 number to call. The voice on the 800 number asked me for a validation code (which apparently was supposed to be shown on the screen) so I told the recorded voice that I didn't have a code. The recorded voice then repeated her request for a code...but louder this time. I was pretty impressed that the phone system seemed to intentionally raise its voice at me...but nothing can explain why the site was not in sync with the call center.

When I finally checked out out and received my Amex voucher, I visited the Hertz site. I have used Hertz.com so many times that I can fly through it pretty quickly now. (I love it, and use it exclusively for renting cars on business trips.) After you enter your itinerary there's an option to put in a voucher code...so I expected this was going to be a piece of cake. Once I entered the code, I received a nasty little red warning stating "this code cannot be redeemed online...call the 800 number." So here we go again. I went back and read the Amex voucher and it said the code could be added after the reservation is made online. So I went ahead with my usual steps and picked my car, figuring I'd call later.

But here's the biggested disconnect...

Anyone who uses Hertz knows the #1 Gold program is completely superior to any other rental car company. Make your reservation, get dropped off by the shuttle close(r) to your car, find your name and slot number on the board, get in your car and leave. It's all waiting there for you before you arrive...trunk open, keys in the ignition. There's no standing around at a counter, filling out paperwork, turning down extra insurance, debating over gas options...just get in your car and go. But what if you have a rewards voucher?

The Hertz lady was nice when I called. She added a few pieces of information to my reservation and I figured that would be it. But then she informed me I would have to go INSIDE and speak with an agent to add the voucher to my reservation, before I could get my car.

So here I am...a loyal customer of both Amex AND Hertz...and a member of both rewards programs (which you can't use unless you use them alot) and when I finally get the benefits I'm forced to take several additional steps to get what I need. Now that I'm not paying full price, I don't get the same level of service.

Makes me wonder how many people just give up...which makes me wonder why some brands bother with loyalty programs at all.

A Brand Promise

A promise is a promise. I was always taught that I should keep my promises. Sometimes a promise is made with a simple "yes sir" or a handshake...more often today it's made with a contract.

So what happens when a brand makes a promise? What kind of agreement exists between the consumer and a brand? Should the brand keep its promise? And what happens when it doesn't?

All the buzz these days is about low customer satisfaction...how companies who can differentiate themselves through exceptional customer service will rise from the economic ashes once this inferno has been quenched. And then I read about Starbucks. I must admit that I used to spend way too much on lattes back when the economy wasn't so bad. These days I've definitely changed my buying habits, and typically only buy Starbucks coffee when someone else is buying; i.e. on business trips or charged on a gift card. I would still consider myself pretty brand loyal, but not enough to continue spending as much for coffee as I do for gas.

So...considering the kinds of promises Starbucks has made to its customers over the years, and the consistent rise in their prices, it seems they were betting they could trap so many of us in coffee euphoria that we would all continue funding our addiction regardless of the economic climate. If they could have actually carried out the brand promise consistently across their vast retail network, I might be one of those people scrimping every couch nickel for my precious caffeine fix.

We've probably all read stories about what Starbucks intends to do for each of its customers. Essentially, they want to create a unique coffee experience for every customer, providing a personal touch and making each customer feel the coffee love. That's their brand promise (as I iterpret it). So how many times has Starbucks delivered the absolute perfect experience to me? I can count them on one hand...although I've visited dozens of different Starbucks locations across the country. I can tell you my best experience...and I can tell you my worst experience. Which one do you think I talk about more? Let me share a recent positive experience at a local Fort Wayne Starbucks (on Lima Rd near I-69): the barista was incredibly friendly, she asked me what I was in the mood for. I was fighting a cold, so I told her the new berry tea looked pretty good. She offered to make some and let me have a sample. I liked it, so I ordered one. It took a little longer than it should, and although I wasn't in a rush she ended up giving me a grande cup of tea free of charge. She was empowered to deliver the brand promise.

But I WANTED to pay for that cup of tea!!

That isn't the first time I've ended up with free coffee for waiting a few extra minutes...I've received several apology cups (mostly from Chicagoland) in the past. But the warm greeting, the attention to my mood, the sensitivity to my time...it all delivered the brand promise. If every employee behaved that way, I don't believe Starbucks would be closing stores right now.

The Lessons of Winning

It always seems like big wins only happen to someone else. Growing up I recall a few times when the home team had a surprising upset or nail-biter victory, but most of the time it seemed like we watched the other side bask in all the amazing last-second scores. I became so pessimistic that this could or would ever happen to me or my team that when I watched a game I usually prepared myself mentally for the inevitable fact that we would not be capable of pulling off a last-minute victory. It simply never happens…its impossible. With that attitude in place, I began watching my daughter play basketball today with other fourth graders. They were evenly matched, keeping the spread within two baskets most of the game. (Their previous matchup was lost 28-6.) But entering the second half that old feeling came back; whatever possible edge we had would soon be crushed and the other team would begin slipping out of our grasp. It wasn't until the last 14 seconds of the game I realized that a victory was possible...I let myself start to consider that we could win this game. Down by a single point, we regained possession in the last six seconds and the final hoop was literally sunk at the buzzer. The all-American last-second slow-motion "swish" only seen in movies had played out before our eyes – possibly the only time that will happen in my lifetime. Parents high-fived each other, some tossed the hero player into the air and it felt so sweet to know we tipped the scale in the last second. In life, in business, in anything, I wonder how often we eliminate ourselves from the race too early when we don't allow ourselves to be optimistic of a positive outcome. A last-second win is always possible.