Your Loyalty is Costing You More

Darryl Bachmeier
Sep 24, 2020
Finance


We have always applauded loyalty as a virtue. Be it in relationships or to your favorite brand of fast food or mobile service holder. But have you ever wondered how much have you gained from this loyalty? Do these companies give you special discounts for staying with them, say 9 years? If your answer is in the negative, perhaps it’s time to reevaluate where we commit as a “loyal customer”

What is a Loyalty Card?

A customer loyalty card is a program that gives the customers the ability to identify as a regular customer. Companies arrange this program to allure customers to keep returning to them in exchange for exclusive offers, discounts, and package deals. The customer can also save points on the cards from the purchases and use the points to buy something else. As a result, the customer finds an incentive to keep returning to the brand.

What Do Companies Gain from It?

Businesses are always on the lookout for new customers but what they care about more is retaining the old ones. As the world has been pacing more towards eCommerce, all it takes for a new customer a few clicks to read reviews. This is when loyal customers come into play. These customers can work their magic through social media and their word of mouth can help gain them profit. However, acquiring a new customer is costly than retaining the old ones. About 65% of a company’s business is contributed by the existing customer base according to the Customer Research Institute. So, not only old customers help gain the company new customers, but it also reduces their costs and increases their gain.

How Does It Affect You?

Let’s look at how your loyalty as a customer is costing you more money than saving any.

You Can’t Discover New Products

The comfort of returning to an old store reduces your chances of discovering many new products out there. New products are coming out every day in this day of eCommerce. It is your duty to be looking out for new better alternatives. Not only you can find more efficient options but also save money on the go.

You Miss New Price Deals

While you may think, your customer loyalty card is getting you new deals. It’s not if you think hard enough. How many times have you received a special discount as a “loyal customer” in the past year? Probably not at all, companies spend more on marketing ideas to attract new customers. You should be constantly checking for the new deal, good products in cheaper options to save extra bucks whenever possible. This way you will be other options to switch as well.

You Don’t Get to Use Points Instantly

Who doesn’t like to be called a “loyal customer”? Even more so, if you are getting a card with your name on it. But we fail to realize at that time is that what seems to be an opportunity at the moment might be the contrary. It takes months; years even to realize these points and use them for a good deal. So, before you jump into getting another loyalty card, think if you want to commit there.

Your Information Can Get Leaked

These companies take your personal information and use them to push newsletters, emails, and even send texts. Have you ever considered, they can misuse this information or some wrong person can get hold of them? Next time, consider these before signing up for them.

How to Negotiate?

A little bit of negotiation goes a long way. You will be surprised to know how many difficult situations can be terminated with little wordplay. We are here to give you a few tricks and tips upon our sleeves so that you demand what is rightfully yours.

Ask Politely

Sometimes politeness and getting your point across to the opposition party not in a passive-aggressive way is necessary to prove your point. Reach out to a customer agent on your next visit and express your concerns. You will have to remind your years of loyalty to the company and get some special treatment in return. However, treat the customer agent as a human being and do not be hostile towards them.

Talk to a Customer Agent Online

If you are uncomfortable being confrontational, seeking out a virtual way would just be the one for you. Go to the company’s website and seek out the online chat feature. You will be able to talk to a customer service representative and express everything. They can provide you discounts or special deals for your years of loyalty.

Final Thoughts

You might still like the customer loyalty cards after this and we are not going to shame you for it. All we are saying is make sure you commit to a brand that values your customer loyalty and it doesn’t cost you your money. Make sure you pay heed to the company’s interactions with you. Remember you are far more crucial to the company than they are to you.

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