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Thoughts on the Week in Advertising and Marketing

Engaging Generation Next - Customer Loyalty

Loyalty marketing is being redefined in the age of multiple product alternatives and equal quality between products.  While many continue to chase loyalty, customer loyalty meaningfully exists in one or two product categories:

- Insurance (72%)
- Healthcare

As a juxtaposition, apparral brands have a 26% loyalty quotient.

Source: Focalyst UK - study of Baby Boomer Behavior - 2007

Susan Wagner, the CMO of Orbitz has some helpful perspective in the September issue of 1:1 Magazine. (Psychology of Next - by John Gaffney).  Susan points out that the key to loyalty is to build engagement over time...at purchase and in between purchases.  She outlines several objectives for a contemporary loyalty program:

- Discover a Point of Connection - focus on human truths with microsites targeted individual audiences (family, business etc in the case of Orbitz)
- Measure things that are actionable - where does the brand make a difference in people's lives
- Strive for engagement, not loyalty - this is where things like online games come into play.

Source: 1:1 Magazine, Forrester Marketing Forum (April, 2007)

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