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The last few years, companies have added customer loyalty programs to their marketing. Most of these fail for a number of reasons.

Which companies have the highest customer loyalty and why? Which have failed, at least for me?

Successes

Coke – People like to drink Coke everywhere in the world. When Coke changed their flavoring based on taste testing, the world cried out to put back the old flavor almost like an addict would. Flavored sugar water doesn’t mean much to me.

Apple – Apple fans go crazy about their products and will tell EVERYONE how great each is. Apple product cost between 20% and 100% more than similar products that aren’t as easy to use. People are willing to pay more for that. I’m not a fan of Apple – mostly because they charge more and their fans are obnoxious.
I did get a phone call from Apple last year because someone was trying to use a credit card with my name on it to buy an iPhone and iTunes stuff. This call was from Apple, not my credit card company. I became hostile towards to nice man on the phone immediately, before I gave him a chance to explain the issue. He never wavered and was always polite and professional – without any accent in his speech. While this hasn’t changed my negative opinion of Apple product pricing, it hasn’t added any more negative thoughts either.
Apple, when will your customers be able to multi-task on an iphone? When will they be allowed to change the battery? When will they be allowed to select from any application that can run on the device?

Google – Google does most things they do VERY WELL and don’t ask me directly for anything in return. They make their money by correlating all my web data together, building a profile about me and selling ads around that data. Most of us don’t really know what this means and we don’t care. I avoid google without filtering personal connection, use, computer data. Further, I avoid sending email to gmail addresses.

Airlines – Delta and United FF programs. They aren’t really that useful to me anymore. I’ve used Continental and AA FF programs in the past but never used an award ticket from them. Which FF program works best for you depends on where you live and where you travel. I have turned in some Delta points for a $1400 international ticket, which made it completely worth while. My United miles expired before I could use them, so I transferred them to a charity.

McDonald’s – Kids, advertising, convenience. I don’t get it at all. I haven’t eaten at McD’s in perhaps 2.5 years. It was an emergency the last time I did because I needed something to eat, quick, on the way to a once in a lifetime event. The closest restaurant to my home is a McDonald’s. I could walk there. I have never been to that store.

Twitter – You love it or your don’t care. I don’t care. Why didn’t AIM or gTalk or MSN setup interfaces with SMS texts? Maybe they did, but I just didn’t know about it?

What’s missing?

Customer loyalty needs to feel like a friend telling another friend about something great that they know is likely to be relevant to them them, not just something good. My friends know the types of things I’m interested in based on prior communications. They contact me when they see something really interesting to me. When was the last time you got any great insight from a customer loyalty communication. Seriously? Most of these communications are a list of 50 things on sale and none are of interest. None. The same old marketing like newspaper inserts. It needs to be targeted and on point for my needs.

Acura – I’ve owned two Acura vehicles and I’m mostly pleased. My interactions with most Acura dealers has been pleasant enough too. When I purchased my last Acura, my last name was misspelled on all the documents and on the title. Boo. A single attempt to correct that through Acura failed, so I gave up. When my annual registration comes due, I initially tried to correct it, but that failed too. My name gets misspelled a lot, so this isn’t a big deal. At least the Acura misspelling result isn’t offensive. Every quarter, an Acura magazine arrives with stories, lifestyle articles, travel hints and offers – Free Augusta National Golf tickets and the like. I don’t golf, but the offer is appreciated. Some of the other deals are interesting and generally leave a favorable impression of Acura.

My next vehicle will probably be another Acura in a few years. The last purchase occurred without visiting the dealership. The papers were signed on my kitchen table on the day the vehicle was delivered to my home. That impression is hard to beat even with the misspelled name.

TiVo – These guys are similar to Apple, except I like them. Their product works better than any alternative, but it costs more than any alternative. I dislike that a monthly plan is even offered and I wish the lifetime plans weren’t so expensive. I’ve been a tivo owner since 2003. That same device is working. I swapped the disk drive a few years ago to get more storage. It is about time to swap the drive again to further increase the lifetime. I don’t use any of the paid add-on options, but I do have it download free internet content like Tekzilla and hak5 weekly shows. Convenience rules.

Failures

Hilton Hotels – I signed up for a Hilton awards program a few years ago due to conference attendance. I tied my room reservation to it, then attended. After my visit, I checked that it was recorded to my HH program, it wasn’t so I sent the information about my stay to the feedback link on the program site. A few days later, I started receiving emails from the hotel manager asking how my stay was. I provided good feedback and explained that the program hadn’t connected my stay with the frequent stay program ID. I attempted to connect it once more. No joy. It has been a year and still isn’t connected. I get monthly emails from Hilton which reminds me they don’t follow through. Attempts to leave their email marketing list have failed too, which frustrate me even more, every month. I’m at the point where I avoid staying at Hilton Hotels or any of their 10 other names. FAIL.

Microsoft – The two most common communications I get from Microsoft is patch your PC and your antivirus is out of date. Is that really the message they want to send weekly? Microsoft has lost my trust. Every time they create something new, I immediately wonder how it will prevent me from using anyone elses’ stuff or how much it will cost me. exFAT file system is their latest push for memory cards to support large media files. I don’t understand why all the memory manufacturers don’t just use the FOSS ext2 file systems instead? Oh – because Microsoft doesn’t (and won’t) support ext2. OTOH, WinXP and earlier OSes don’t support exFAT either.

Linux / Ubuntu – This isn’t really fair. Linux isn’t a company and has no advertising budget. Ubuntu doesn’t seem to have much advertising budget either, at least for the masses. What can Linux do better? Well, they can show 30 second clips of people using the software to solve a real problem with FOSS. It would be best of the problem highlighted something that Windows or Macs don’t do well at all. #1 – every time should show price followed by system maintenance and upgrade processes (click the red triangle in the corner). Currently, failing. Yes, I know that Linux is just the kernel and that no users actually use it directly. We all use some higher level tool created by GNU or Ubuntu or Red Hat or SuSE or Mandrake or some developer in his basement.

Amazon – I shop on Amazon for price and convenience. I maintain a wish list of things to make gifts easier and as reminders for things to purchase later. I don’t think I’ve ever purchased anything recommended for me from Amazon. They know the types of things I buy with over 200 purchases. If I bought a router, I probably don’t need another. 3 months later, I don’t need to see CAT5e cables or a switch either. I’ve had a few issues with Amazon product shipments over the years, but Amazon has always made me whole again, always. Their customer service does a good job. Their product suggestions, not so much.

Travelocity – They know where I’ve traveled, how long I’ve stayed and when I tend to go. They also know my searches for destinations. Yet, they don’t send deals for those destinations or worse, keep sending them when I’m already back home. I want international travel deals. I doubt I’ll ever take a vacation to Los Vegas or fly to Ashville, NC. STOP OFFERING THOSE DEALS, Travelocity. Offering a flight from Atlanta to Savannah is a waste of your time too. I’d end up spending more time dealing with airport garbage than a simple drive there. I’m not going to fly commercially to Savannah, ever. I’ve routinely searched for flights to Bali, Singapore, New Zealand, Australia, London, Europe, Chili, and Peru. Get the hint and target those deals, please?

My Senators – About once a year, I get an email from my senators claiming to have stopped some bill that is bad for the country. I wrote to them a few years ago about some of my concerns which they responded to by a carefully copy/pasted paragraph about each of my concerns. Most recently, it was about the health care bill, which I’ve never written to them about. Nice. Fail.

Grocery Stores – They give small discounts for the cost of you letting them see what you purchase. I’ve never had a grocery store loyalty card. My privacy is worth more than $100/yr. When my local Kroger started pushing them, I spoke with the store manager about my displeasure. He wasn’t helpful, I stopped shopping at Kroger. Publix is a local competitor where I started stopping. They also had a discount card, but if I didn’t have one, the cashier always scanned hers so I got the discount. Kroger – FAIL, Publix – Success. I suppose manufacturers would be snail-mailing coupons to me if I had a card? That local Kroger went out of business. I doubt I had anything to do with that, but the store manager definitely did. Good Bye.

Customer Loyalty Programs

Which programs work for you and which have failed? Why?