Today's markets and businesses place a premium on customer loyalty, yet customer loyalty appears to be fleeting, only achievable through offering the lowest price or best margins to the channel.
Yet still companies flock to the price and margin loyalty programme bandwagon in attempts to win consumer loyalty, forgetting the value that lies in establishing long-term true partnerships programmes.
This current short-term focus and attitude has been the recent driving force in many marketplaces of the world today, redefining the traditional working relationships of clients and companies alike. Today's instant gratification society results in companies missing the value in the relationship and causes them to focus and strive only for the bottom line.
Yet the question must be asked: is this low cut, best price demand from the market that represents the current ethos of channel business the result of true loyalty campaigns or merely a reaction to consumer purchasing power behaviour?
It is true that partner programmes and other loyalty-building initiatives that one may intend to provide do need to offer specific revenue-generating incentives that will help grow the client's business because, ultimately, bottom line margins do speak louder than words.
As a result, the offer of an increase in improved target services, better prices and greater assistance with promotional material, as well as faster turnaround times, is widely considered primary positioning to reinforce the base for trade.
It is thus up to operators within the channel to compete wherever possible and position their service offerings to leverage off the fact that loyalty is really down to margin and best pricing.
Yet is an increase in loyalty campaigns and low cut pricing then the answer to the loyalty challenge? Or should loyalty not be the result of a tangible partnership with sustainable positive results for both parties involved?
While necessary for general best practices in business, loyalty programmes built only on price or margin and service could be viewed as only building more grey areas than creating loyalty; if they fall behind price and margin on the list of key business requirements then loyalty is lost and client churn rife.
There is a vast opportunity for business development and growth, particularly within rural areas and the SME space through loyalty programmes. But what is required to take hold of this in the industry is perhaps not so much an increase in loyalty campaigns, but rather more earnest efforts to build long-term integrated partnerships with clients that make use of loyalty programmes as one of many relationship building tools.
Relationships established on the grounds of comparative, if not best pricing, as well as premier service support that reinforces the customer's experience is what is required. This means long-term listening and tailor-making of loyalty programmes in a partnering manner that can result in true value addition to the channel relationship and thus client loyalty.
True partnerships constructed with mutual objectives for creating mutual benefit for parties involved will be what leads the way to long-term relational stability, sustainability and success which will then translate into true loyalty.
Indeed, such partnerships with integrated relationship benefits and loyalty strategies are much more difficult to establish, yet they are far more rewarding to everyone involved if successfully achieved and followed. What we need in our markets today is the skill and determination to build such integrated partnerships that make use of true loyalty strategies.
This will build a future for the parties involved, and for South Africa, and not merely repeat the 'mock loyalty' achieved in programmes offered by companies bent on success or profit at the expense of true value.
Share
Established in 1997, Sahara Computers assembles and markets PCs and peripherals through a global distribution network that covers both established and emerging markets.
The company is based in Midrand, South Africa and is the official distributor and original equipment manufacturer for a variety of top international vendors including: AMD, Creative, Delta, Epson, Foxconn, Intel, Lexmark, Maxtor, Microsoft, Samsung, SMC Networks and Symantec.
An accredited member of the Proudly South African campaign and SAVANT international brand awareness initiative, the Sahara business network stretches across South Africa to include Cape Town, Durban and Port Elizabeth.
The company has extended its reach to - and established presence in key global markets including Dubai and India, and continues to supply developing markets in Africa such as Botswana, Kenya, Mozambique and Namibia.
Sahara's core focus is on the supply of affordable, reliable and accessible technology. The main objective is to raise the profile across the African and global information and communications technology supply market. For more information on Sahara Computers, its products and services, visit www.sahara.co.za.
Editorial contacts