Is There Such a Thing as Short-Term Loyalty?
Every year around mid-June a tent goes up in one of the local business parking lots, and a guy sells fireworks for July 4th. Come July 5th, he packs up until the next year. The same is true for the rose vendor at Valentine's day. Is it possible for these merchants to create loyalty? In today's 1to1 Weekly lead article, "Building Loyalty in the Short Term," we discuss how companies with short customer lifecycles define loyalty, and how it may be a different strategy for different companies.
In many of these cases, companies define loyalty based on positive word of mouth, which helps keep the new customers roll in as the old ones finish their business. What do you think? Can loyalty have different definitions, and should these types of businesses even care about loyalty? Do customers want to be loyal when they have such a short lifecycle?
Loyalty is an emotion that might often be driven by logical facts, but more often is driven by necessity, perception, and habits. Our habits which influence our traditions and speak of our values compel us to go to the same "guy" each year. Many things can inhibit this process, but just as many can ensure it. My firework "guy" has a great story to tell, a cute dog and he always gives candy to my kids. I could purchase my fireworks elsewhere, but now I'm loyal to this stranger. Once a year, every year we will meet until he disappears. He's part of my family's tradition; my children's story. That's short term loyalty that never ends and makes an intangible difference. You can't bottle and market that type of loyalty. You either got it or you don't.
I think loyalty is important irrespective of whether it's going to be short-term or long-term customer tenure (btw, nobody knows for sure how exactly long will it last anyway). All things being equal, loyalty is a manifestation of customer engagement and a desire of doing business with you at the end of the day. In the case of short-term, the numbers will be still at their maximum though not stretching over time. Plus, even the current loyal customers are staying short-term organically, it may bring references replenishing the customer pool to roll on.
Well,in my perspective a firstly customer's shouldn't be segragated in terms of tenure of the relationship with the company, even if the genre of the businessis such.A customer is an asset on which a company grows so if the relationship is short term in nature he can still impact the business positively by referring more prospects, only if his experience is good and that precisely is a true reflection of customer loyalty.
According to me loyalty is a judgement and not a measure of customer experience.
This article about loyalty in the short term is very interesting. In some types of business, “loyalty” may sound even inappropriate if we don’t look carefully.
Few days ago, here in the Brazilian office of PRG, we saw a curious case in the report of new subscriptions for the Portuguese version of 1to1 Weekly. One of the new subscribers was the manager of a funerary agency.
Of course there are many opportunities for cross-selling and up-selling in that business, but our first impression was “Does this guy want to build the loyalty of his customers? Isn’t it ‘creepy’?”. But the article gives good tips, even for the most unobvious cases, such as bridal shops.
If, perhaps, we consider loyalty the customer response to being treated in a way that ensures an affinity if not enthusiasm for completing at least the one transacrion that might make up the "ultimate" short-term relationship, it becomes difficult to see why or how we could have different strategies for "short-term" and "long-term" customers. Don makes an excellent point in his reference to what we might do to induce loyalty in the "short-term" customer is, perhaps, the first step in building a "long-term" relationship (the John Goodman reference).
The bridal shop strategy discussion is a wonderful example of why we do this. Good treatment stays with people as people or customers. When people's needs recur whether anicipated or not, they gravitate toward where they previously were treated well in meeting their needs. Every person coming in the door or submitting an order will respond favorably to what short-sighted businesses will see as how to treat the "long-term" customer they already know and count on and, therefore, appreciate.
In terms of what we do to inspire loyalty in customers, I would offer that there is no difference in how to treat a "short-term"versus a "long-term" customer.
I am focused on unsurpassed customer treatment irrespective of when the person standing in front of us or on rhe phone last was in touch.
I would argue that all we have is the "short term" when it comes to customers, at least that's how we should approach them. To paraphrase James Dean, plan as if you'll have your customers forever but treat them as if you will lose them today.
Definitely loyalty with word of mouth referrals is the best. However, there's nothing worse than a customer who has no loyalty to you and disses you. Regardless of whether they buy once a year on the 4th of July (I seem to see firework stands come out for every holiday from President's Day to Christmas! here in Texas) or more frequently, we should all strive for customer loyalty. Why else are we in business? We must all strive to do a good job - and a good job results in customer loyalty, I believe.
One thing I've learned over the past 25 years in business is that you never know how a relationship will develop and what it will result in - and it's usually always different than what you normally expect.
If for no other reason, you need to remember that what goes around comes around and cherish each and every person you meet -whether you'll be able to help them or they'll be able to help you. Give first to then receive.