Loyalty you don’t talk about
When I was with iTunes we went through the transition where we started to focus on retaining existing customers rather going after new customers.
As part of that process, we spoke to some of our very top customers to understand what it was that kept them coming back. In almost all cases, they were shocked to hear what they spent at the store. We watched as they spend dropped right off over the coming months.
We have the same problem at Gilt. Our very top customers don’t really want to be reminded of how much they are spending with us. They know, of course, but pointing it out to them typically curbs their spending. All of the characteristics of the best loyalty programs go out of the window – no rewards for top customers, no gold card for more purchases – it’s the most effective way to stop those customers spending.
In these cases, you have to think a bit more deeply about how to encourage loyalty without highlighting spend. We designed programs to surprise high value customers with unexpected gifts and an increased personalization of service. We let them know how much they meant to us without talking about their activity on the site.
Sometimes not telling your customers how important they are is the best way to keep them spending.
