Stephanie Fierman - Marketing Observations Grown Daily

Stephanie Fierman Is Willing To Be Perkified

Tuesday December 02nd 2008, 11:17 am
Filed under: advertising,branding,customer service,loyalty marketing,luxury,retail,stephanie fierman

One of my favorite newsletters has labeled the trend toward brands offering special perks as “perkonomics.”

Trendwatching.com points out that while the credit card, travel and hospitality industries have relied on rewarding good customers with cashless privileges (seat and room upgrades, etc.), most other businesses and brands have not seized the same opportunity.

I think there are many many reasons why perkonomics is going to become increasingly important: (a) I haven’t heard anyone talk about this, but I believe that consumers are going to become desensitized to discounts. As we dive into this recession, everyone is offering dollars or % off in big numbers and – over time – this will lose its power. The prevalence of discounts will simply serve to lower overall price expectations. It’ll take more to jumpstart a consumer’s loyalty. (b) Have you noticed that it’s harder just to navigate the world lately? Companies under pressure tend to cut services and benefits. Those who can offer experiences that cost them little to nothing will see appreciation that far outweighs their actions. (c) Competition means that it’s too easy for a consumer to dump you and move on. The little things are what will keep them. (d) There are still segments with cash and market power who – at least for awhile – may wish to be less ostentatious with their purchases. Brands need to stay fresh and memorable (and appreciated) during the downturn.

I’ve been thinking about this since a friend told me that Visa Signature offered exclusive lavatories to cardholders attending a big music and arts festival. Would you expect a special potty from your credit card? No. Will you always remember the huge lines for the regular icky bathrooms while you were treated to a better experience? You bet.

Whether it’s a dedicated line at club, a special reservations phone number at a restaurant or a free bottle of water in a hotel room – these are the things that consumers will remember and that cannot be “bought.”

Trendwatching.com