Loyalty cards, rewards cards, club cards... call them what you want but ultimately they all offer the same thing: a direct link between customer and corporation. The perceived value is often to the customer who receives benefits in the form of discounts, bonuses, reward credit and preferred treatment. But in reality, the true value in these programs is to the business that, following some sort of membership application, then holds the critical contact information and purchasing data record of every participating customer.
In a whole other league, there are membership programs or co-operatives whereby the customer must pay a fee in order to shop or receive large discounts and paybacks from a business.
Examples of these membership programs are utilized by Costco and MEC.
The challenge is that as soon as a customer has to pay for their membership, their expectations are heightened. Mine certainly are. I expect to be treated as a member, that is to say, not only will I receive extended benefits but I will be treated as though I belong to a select group.
This is why I was caught off-guard last week when I visited a business, where I've invested in a paid membership for a number of years. I had stopped by spontaneously, on my way home, to pick up items that were half-price with my membership.
When I got to the till, I realized I didn't have my membership card with me which I needed in order to get my discount. I went ahead with my purchase at full price, reasoning that I could bring my receipt back with me to the store in order to recoup my 50 per cent discount, once I retrieved my membership card from home.
When I returned to the store for my discount, however, I was curtly informed by the store clerk that they couldn't reimburse me for the difference despite having my membership card in hand. Those were the rules; they didn't write them.
I asked whether they accepted returns. They would, but I must have the product in its original packaging with my receipt.
So there I was, placed in a position where I was forced to be deceitful. They would accept a product 'return' which I could then re-purchase again on my membership card for half price.
This would necessitate me having to pretend I was returning the items, which indeed I wished to keep.
Additionally, I would have to drive home, gather the items, dig the packaging out of the garbage, return them at the store and then make an entirely separate purchase of the same item.
This is what I call a nonsense policy.
I arrived home mad as a hornet, called the national customer service line and ended up being transferred to a regional manager who agreed to make an exception for me. I still had to dig the original package out of the garbage bin but I didn't have to bring in the items as well.
Although I was relieved not to have to lie in order to receive my discount, I certainly was not made to feel like a member of any club as I rummaged through dirty diapers and coffee grounds to get to the package.
In fact, the person I spoke with on the phone explained her suggestion to the local store manager that a naughty box be created at the till.
For one time only, members without their cards could make a single purchase but their names would go into the naughty box for recording and tracking purposes.
The point is that, if your business creates a membership program of any kind, for heaven's sake, make the customers feel like actual members, not criminals.
Set business policies that make sense and don't contradict each other. Create an environment where customers feel good about their membership and their purchases.
And most importantly, always give your customers the benefit of the doubt.
Until next week, stay in the black and keep coming back.
