Hospitality Sales and Marketing Association International
Hospitality Sales and Marketing Association International
Hospitality Sales and Marketing Association International

knowledge center - fueled by the HSMAI Foundation
About the Knowledge Center

The Knowledge Center, which is the succesor to HSMAI's eConnect, is your source of insights to fuel sales, inspire marketing, and optimize revenue. Fueled by the HSMAI Foundation, here you will find articles, presentations, templates, multimedia, and much more from HSMAI and industry leaders. Many of the Knowledge Center resources are offered exclusively to HSMAI members.

Knowledge CenterWhy Customer Loyalty Should Not be Your Goal And What You Want Instead | By Dennis Rosen, September 26, 2016

Loyalty has become a goal of many businesses. Many consultants claim they will help businesses accomplish this goal. However, it is important that we define our goals correctly since they represent where and how we will direct our efforts. So consider, is customer loyalty what you are really after? What is Loyalty?The problem that exists is with the definition of \"loyalty\" that is generally used. Loyalty is usually considered a situation in which customers come back to the same business repeatedly over time. If they routinely use the same business or buy the same product, they are said to be \"loyal.\" If that is the definition you are using-the goal you have set-then you have misdirected your efforts. Let's Make a DealReach into your pocket or purse right now and pull out your keys. If your key ring is like many, you have a plastic card on it with a scan bar you can use at the local grocery store. You scan it and they give you a discount for coming in. It's supposed to keep you coming back. In fact, these little plastic doohickies are called \"loyalty cards\" in the industry. Customers use them all the time, which is why, if you have one, you probably have it on your key ring keeping it handy. And it's likely right next to a card for a competing grocery chain that you also use all the time. Now, if either grocery is tracking your visits (which, of course, they are), they know that you come back repeatedly. But are you truly loyal, or are you just taking advantage of a deal? This is not to suggest that there is anything is wrong with \"loyalty cards\" to attract and hold customers initially. However, you should question whether this concept of \"loyalty\" based on bringing customers back repeatedly only because of special deals is what your ultimate goal should be. The Only Game in TownSay a young couple moves to a small college community. When they first get there, they tend to use certain stores and go to certain restaurants because these are t

HSMAI 2015 Industry Insights

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