Recently I did some spring shopping at my local mall.  I don’t love to shop, but I do enjoy people, so when the cashier began chatting with me I was happy to go along.  After a friendly opening gambit she asked if I’d like to use my store credit card or open an account and save 10%.  Since I realized this is part of her job, I simply smiled and said, “No thank you.”  She then totaled my bill and said I could save $15 RIGHT NOW if I opened an account.  I said no.  When she mentioned it a third time in the span of 90 seconds, I felt defensive and explained that having many credit cards can actually negatively impact one’s credit rating. She then began arguing this point with me, and gave me a big frown as I completed my transaction.  I won’t name the store, other than to mention that there was a huge GAP between my desire to shop and be treated in a friendly manner, and her desire to reap whatever incentive one gets for successfully foisting credit cards on unwary customers. 

Then I was on to a chain bookstore.  The clerk there tried, in much the same manner, to push his brand’s reward card on me.  Again, the main benefit - stated to me several times during our brief interaction - was to save money TODAY.  I escaped with my purchases and headed for my car wondering if customer loyalty programs are really creating loyal customers or just providing short-term financial gains at the long term expense of the brands that push them.  

Having worked in retail myself, I know salespeople have tough jobs.  They work long hours, often take a lot of crap, and, because they don’t get paid very well, it is ridiculously easy for management to incent specific behaviors via financial rewards and a teeny bit of training.  But in the case of both of these organizations, brand managers should think more carefully about what behavior they are incenting at the retail level, and how that behavior impacts customers’ experience of their brands.  In my case, the clothing store I was in had just undergone a major, likely incredibly expensive, remodel making it look much more upscale – no doubt with the goal of reframing my brand perception.  But instead, since I was treated like a wallet to be squeezed rather than an upscale shopper who appreciates good service, I was reminded why I don’t usually shop there.   

There is one retail clothing company successfully using their customer loyalty program in a way which enhances their brand.  Anthropologie just introduced a program that is benefits-oriented rather than discount-oriented.  The salespeople tell you one or two of its benefits at the register, and they don’t bully.  The benefits are compelling enough to stand on their own – like not having to keep track of your receipts for returns – and that’s it. 

My spring shopping lesson was that flouncy pastel skirts are in fashion.  So too should be aligning loyalty programs and retail sales staff’s incentives with core brand values. 

-Peggy Brown