Interesting comment and I do agree with this point. I go to the same café most days, even though it doesn't offer any sort of loyalty card and other nearby cafes do. But I do it because the coffee and service there are both excellent. I once actually asked if they did have a loyalty card - just in case I was missing out on something - and the guy told me that "we don't do loyalty cards, we do face-to-face instead". I think he had a good point.
I agree with this and display the same 'loyalty' to those businesses I use which are easily and identifiably providing me with something that I can't find elsewhere. Whether thats service, product, locality, or a combination of all. I'd ask the question though, what if there were two cafe's like the one you mention right next door to each other, providing, essentially, the same product, service, price etc? I mean, its virtually impossible for two businesses to actually be 100% the same, but say they were within a few percentiles of each other? Service was better at one, product better at the other (but both quite acceptable)?
This is how I view domestic travel with either QF or VA. They are almost the same, in essence. Yes there are some differences around the edges, but they are pretty minor. I'd strongly suggest that most non FF types in a double blind test would struggle to tell them apart.
But anyway, my point being that for me, even if I'm alone in viewing both these players as almost the same, how do I choose which company I will fly with on any given day? BFOD is pretty inviting and I've toyed with that, but, ultimately, its the 'loyalty' program that sways my judgement most of the time. In this respect then, the programs work ... in an otherwise line-ball game, they attempt to 'help' the consumer to make a choice in favour of that provider.
Having said that, I think it's important that if you are asking a customer to sign up to a loyalty program, there should be something in it for the customer. A good example of a loyalty scheme that fails in this regard is the Dan Murphy's program. I'm still not sure what the benefit of having a Dan Murphy's card is.
Yes, indeed. You've got to provide a reason for the customer to engage with you in this way. If you're not capable of this level of engagement then, as a business, you shouldn't do it. I've struck this any number of times with different businesses wanting me to join their program. I always ask - whats in it for me? You'd be surprised at how often the sales people choke and struggle with that, right away. These schemes are often dreamed up by the management/ownership simply as a way to build a mailing list, then almost completely forget the customer might have an expectation of something from their end.