The question whether our economy is in a recession is a difficult one that not even our smartest economists are able to answer. It is not important whether the worst is already over or is yet to come, businesses are facing challenges to win and retain customers today.

Companies that have systematically built relationships with their customers in the previous years should now tap into the potential that lies within the most potential customers. As AdAge reports, marketers are shifting to programs to keep their core audience, their most loyal and profitable customers.

It is a well known fact, that most of a business’ revenues come only from a small portion of its customers. When times get tougher it is more economically reasonable, to invest to keep these customers loyal. Adam Burke, senior VP Customer Loyalty of Hilton Hotels notes:

Our Honors members tend to be the group that buoys us through a downturn. They are the core audience and tend to stay loyal and sustain the business especially through those downturns.

But the challenge remains that betting on your customer’s loyalty cards is not enough. Differentiated and customized services that match your customers needs are the key to keep them loyal. Focusing on their individual experience will help your business make it through these stormy times.

"It’s important […] to understand that loyalty is not a plastic card. It’s about creating experiences and recognition with programs versus just making it a plastic card inside a wallet. That’s what is next for loyalty."

Read the full article here.

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