October 26, 2018
While most companies offer a customer loyalty program, some like TOMS One for One and REI Co-op are standouts. Both loyalty programs are simple to understand, add real value in a generous way and connect to consumer beliefs. TOMS’ to “improve lives” and REI’s to “an outdoor life you love” are both belief sets that connect with a sizeable percentage of the population and studies show that customers are loyal “not to companies, but to beliefs.”
The downside is that consumer perceptions of a company’s beliefs can turn on a dime. If an account takeover (ATO) occurs causing your customers to suffer, then a different set of brand-associated beliefs flood into their minds. Terms like “careless”, “negligent” and even “greedy” can quickly overtake positive sentiments. This shift is extremely damaging and difficult to overcome. Watch as Rich and Tricia cover the motives behind ATO and games that fraudsters try to play with these programs – specifically in the quick service restaurant space.
Protecting customer accounts should be top priority for every online business because it is the right thing to do. Furthermore, it costs about 5-25 percent more to acquire a new customer than it does to keep an existing one – so, just like in any relationship, keep those in your circle safe and happy.
Learn more about protecting customer accounts in Kount’s blog post Protecting Digital Accounts: Loyalty Programs in Focus.