Very recently, have I got a chance to explore the payment card industry from close quarters. One of the developments that caught on my interests has been RFM.
The three letters have actually got the power to transform customer perceptions towards a company, store or a brand. Extremely easy to understand, yet I don’t see many companies using this for the kind of potential it holds.
The best part of this technology is the fact that there could be a full fledged Loyalty Solution around it or could be used as a Tactical Promotion.
Why is it that companies still prefer the normal earn-burn program? Everyone today offers a Loyalty Solution. Why?
Maybe because the competition has it.
So, do we have a Loyalty Solution for the customer or the Competitor.
My wild guess is – Competitor.
The same ol’ Earn & Burn. No changes. No innovation. No Fizz. How many of us visit stores for the program? How many of us would continue to buying from some retail stores, even if the program ceases to exist.
RFM, simply rewards a customer basis his transaction history and creates “What Next?” or “What is it this time?” curiosity in the minds of customer. This transactional history can also be a stepping stone to Analytical “data driven” marketing, based not only on demographic or socio-economic but also on the customer spending & behavioural patterns.
A day would come when everyone would join the RFM bandwagon in India. I am just waiting for the first one.
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