The Nation Newspaper

Tag: loyalty

  • UBERisation of Ridesharing: Brand trust, phone-space share and partners’ loyalty

    UBERisation of Ridesharing: Brand trust, phone-space share and partners’ loyalty

    Named the 89th most-valuable brand in the world, Uber is the leading e-hailing app in Lagos. Uber is not on the route to market leadership; it is the leader of the ridesharing market. The brand is so prominent such that the word “uber” is fast replacing the word “taxi”; taxi drivers in Lagos said Uber is taking them out of business.

    Uber understands the three key drivers of this business. The first is Brand Trust, the possibility of people trusting your app to be real and effective. The second is the phone-space share; which is the likelihood that someone will give his/her memory space to an app. And the third is the loyalty of the partner-drivers. Uber has the biggest brand in the industry globally, and this has translated to a level of brand affinity for the app in Nigeria. It has been observed that some young social media savvy guys would use Uber and post about using uber to boost their status. Uber is a thing of status, and not just for convenience. Someone once tweeted: “Is it poverty when you jump buses?”. If it is about speedy transportation, BRT buses would beat Uber. Uber buses ply same roads with the yellow buses and thus the proposition cannot be speed. Let’s say it’s the chauffeur for the middle class. However, without brand trust, only few people will download the rival e-hailing apps, irrespective of marketing.

    The second market driver is the phone-space share, the likelihood that a mobile phone user will share his/her memory space with an app. Whatsapp, BBM, Facebook, Facebook messagers, Instagram, Twitter and Slack are apps already competing for space in most smart phones. In addition to these, the mobile phone user needs a good reserve for Gallery – to save pictures downloaded and taken with phone camera. Thus, it becomes a rational decision-making whether to download an app or not. This is why Uber’s approach of pre-loading new phones with its app is strategic, and you may just need to install the app after purchase. The third market driver – loyalty of the partner-driver, is actually working for Uber. Uber drivers in Lagos earn an average income of N40,000 monthly; some private individuals have given up their private cars for Uber to make additional imcome. Uber has got that loyal movement, even as rivals increase the incentives for their own partner-drivers.

    There are some other five (5) e-hailing apps in Lagos but all you hear is “Get me Uber!” In February 2017, Smart Cab was introduced to Nigeria by Jubril Arogundade, and the propositions of the brand were supposed to challenge Uber and compete favourably. They include wifi for passengers, and packages tailored for different market segment. However, the traction for Smart Cab has not been competitive enough and it is struggling to have brand recall despite using social media and celebrity endorsement. The reality is that this market is Uberised – Uber being the market leader, with an indisputable top-of-the-mind (TOP), and loyal partner-drivers – until there is a brand capable of taking control of the market drivers as much as Uber does.

  • Brand war over pupils’ loyalty

    Most brand managers that offer fast moving consumer goods for kids usually make a huge capital out of Children’s Day festivities as they design several brand promotions activities and campaigns that bring children closer to their brands.

    Children’s spending power is booming, as such they exert a lot of influence on their parents’ purchasing behaviour.

    Naturally, companies that spend time and money influencing children at a young age could see them retain their custom in the future.

    One of the companies that keyed into this is Indomie. At this year celebration of the juvenile festival, Indomie Fan Club IFC, children based fan club organised a fun-filled children’s party for over 100,000 school children across the country and also rewarded winners of the Indomie ‘Show Your Talent Competition’ which began around April.

    Dufil Prima Foods Plc, makers Indomie gave an amazing treats to all the children present regardless of their social class as they all participated in various fun activities which include bumper car, carousel, the rockets, the pirates’ ship, the spinner, the tea cup, disco ride, and the air bicycle.

    The Group Public Relations and Events Manger, Dufil Prima Foods Plc, Mr. Tope Ashiwaju affirmed that the celebration which is replicated across various parts of Nigeria has been decentralised to make it accessible to more children in the hinterland with such fun centres.

    Another fast moving consumer goods, Viju milk, in conjunction with Wonderland Entertainment  held the Children’s Day carnival at Keda Field, Abesan Estate, Lagos. Just to ensure that the children loyalty with the brand remained unchanged.

    Viju provided drinks and souvenirs to participants at the carnival. The carnival featured athletics, tug of war, quizzes, drama, cultural troupe performances, a march past, a pageant and other fun activities.

    As part of its activities to celebrate 20 years of operations in Nigeria, Rainoil Limited also conducted eye screening test for public schools pupils in Nigeria.

    During the eye screening test at community primary school, state primary school Ewutuntu and state primary school Mafoluku, CSR team lead Rainoil Ltd Amaka Nwaobi said the public schools pupils were targeted for the initiative majorly to be identified with the children of middle class parents who could not afford to visit eye specialist, hospitals for the screening test.

    “We target eight years and above public school pupils so that the screening test exercises. We are conducting the screening test for over 500 pupils in this local government as part of the company CSR initiatives,” she added.

    Not to be left out, Ribena, one of the nutritional fruit drinks from the stables of Suntory Beverage and Food Nigeria Ltd under The Ribena Bridges to Goodness School Project, on Children’s day, recognised and awarded 1,200 children across 600 schools that have over the last months displayed good values and exemplary character and inculcated them in their everyday living.

    On children based CSR activities, Chief Responsibility Officer, CSR Nigeria Ken Egbas said that brand handlers should begin to think and strategise towards CSR that are sustainable for children and should not wait until the Children Day comes before they plan social responsibility activities for them.

    “If truly they want children to be loyal to their brands and embrace their products in the markets, brand owner should tie their CSR activities around sustainable initiatives like education, health and so on, so that the impacts of the CSR last longer with the children,” he advised.

     

  • Loyalty in competition

    AS this year’s edition of social lifestyle reality show, Big Brother Naija inches towards the finals, there are remarkable changes in the tempo of game that evoke food-for-thought – loyalty in competition.

    There are six contestants left in the competition, as true to what organisers and viewers would consider the real essence of the game, hostility, intrigues, gossips and tension are the order of the day in this 11th hour of BBNaija. Interestingly, the six are divided into two – four against two – with Efe, Bisola, Marvis and Bally in one camp, while T-Boss and Debie-Rise make up the other.

    Although this alliance, which invariably is to see that no member of either group misses the final, will collapse naturally any time after tomorrow, after which every man will be to themselves – as only one winner will eventually emerge from the process.

    For example, Bisola, on Wednesday, was in her usual comic albeit serious way, campaigning for Marvis and Bally. In the end she said, “But come next week, vote for me…”

    Bisola and Efe have shown a great level of loyalty by not putting their allies up for possible eviction in this game, and it is interesting to see that those who showed more desperation have been sacked from the show.

    Bisola and Efe recognise that they are contenders for the prize money, but have never nominated each other for possible eviction. Bally, who is somewhat close to these two had on several occasions nominated them, making it clear to Biggie during his Diary Sessions that he wanted to get them out because they constitute a threat to him in the game. T-Boss, despite her romance with Miyonse, was among the housemates who nominated him for eviction. ThinTallTony had put up Bisola for possible eviction despite their romance, just as Uriel had put up CocoIce and Debie-Rise who confided in her at separate times and looked up to her as an advisor.

    While this appears to be the normal thing in a competition of this nature, Bisola and Efe appear to be changing the rule, so much so it is working in their favour. Yes, because of a truth, the probability of a winner emerging between these two is very high, going by the percentage of votes they have garnered during the periods they were put up for possible eviction. At the moment, it is difficult to tell who between them has a stronger fan base on the show because they have never been up for eviction at the same time, so as to know who scored what votes from the viewers.

    But I like the new spirit that these two have brought to the game despite knowing that they constitute a threat to themselves. As Bisola put it, “I know that Efe is a threat, but I will not nominate him. I would leave God and the viewers to decide…”

    As if that was not enough, Bisola, having won the Head of House for this week, was asked to save one housemate and replace with another last Monday. Efe was among the housemates up for possible eviction. She chose to save him and put up Bally instead – meaning that she and Efe are sure for the finals, plus any other housemate(s) who may not be consumed by tomorrow’s live eviction show.

    For Bisola and Efe, I doff my hat for being loyal to themselves in the face of competition. It only shows their level of self-confidence, high self-esteem and spirit of sportsmanship.

    Indeed: “The race is not to the swift or the battle to the strong, nor does food come to the wise or wealth to the brilliant or favour…” either Bisola or Efe, being the leaders in their group will live this mantra come upper Sunday April 9, 2017 when the winner of the N25 million and a brand new Kia Seranto car will be announced. This is not to say that with the new aggression from fans of either camp, the vote for T-Boss and Debie-Rise wouldn’t improve remarkably. It is noteworthy that Debie-Rise has showed she has more fan base than T-Boss twice that they have been put up for eviction together.

  • Rare loyalty

    Vice President Yemi Osinbajo last Friday displayed core loyalty to his boss, President Muhammadu Buhari.

    The occasion was the brief ceremony welcoming Buhari back to the country after 50 days medical vacation in the United Kingdom. Buhari had written to the National Assembly naming Osinbajo in line with the 1999 Constitution as Acting President to run the affairs of the country in his absence.

    The 50 days in the saddle as the Acting President was enough time to ignite selfish ideas and moves in the head of any over-ambitious deputy. Such over ambitious Vice Presidents would have been perfecting schemes and moves to become the substantive president. That was the main reason why some past Nigerian leaders, when they wanted to rest or go for medical check-up and treatments, found it difficult to transmit a letter to the National Assembly to pave way for the number two citizen to become Acting President in their absence. They would rather hang onto power while abroad under various guises to receive medical treatment.

    Osinbajo’s loyalty was further put to test while he held sway as the Acting President when some Nigerians began to sing his praises because the naira was appreciating against the dollar and there was increase of daily oil production due to peace in the Niger Delta region.

    Osinbajo didn’t allow all the praises get to his head as he remained focused in steering the ship of state.

    Given the opportunity to speak on Friday, Osinbajo did not only thank Buhari for giving him the opportunity to serve in that capacity, but also displayed very rare core loyalty to his boss.

    At the First Lady conference hall venue of the meeting, Osinbajo on behalf of the Federal Executive Council (FEC) welcomed the President back home.

    He said, “We are very grateful to God that you are back home hale and hearty. Mr president, I must say that personally, this has been a very interesting few days for me. First I must say that I want to thank you very much for the confidence reposed in me by handing over the realm of government to me in the capacity of Acting President.

    “I think more important is that you demonstrated the belief in our system which is even more important than anything else.

    “The constitution which we all swore to uphold is important because it outlines the code of conduct. I want to say not only am I, but I am sure the entire nation is grateful to you.

    “For me I must say that it has been an interesting period going around the nation in borrowed robes. I must say I had a very interesting and challenging time but above all, the President gave us the good support,” he stated

    It is only hoped that such relationship between the President and the Vice President will continue even beyond 2019.

     

    Ending corruption in public service

     

    The federal civil service, which is a very crucial group to governance, has been described as a clog in the wheel of progress of the Federal Government over the years.

    It comprises of employees responsible for planning, giving advice and implementing policies in government ministries, departments and agencies.

    The group, which is involved in bills drafting, preparation of annual estimates and budget, keeping government records and properties, is believed to be enmessed in frauds.

    Due to the alleged malpractices in the service over the years, the civil servants in some quarters are referred to as ‘evil servants’.

    Worried by the large scale of frauds in the public service, the Chairman of the Presidential Advisory Committee Against Corruption (PACAC), Professor Itse Sagay took the public service to the cleaners during the National Dialogue on Corruption at the State House a fortnight ago.

    Under the subtitle of ‘Extreme Recklessness of Public Servants’ in his speech, Sagay said: “The recklessness with which public officers spend public funds is insensitive to the point of insanity.  Yes I mean that.  The level of insensitivity has become pathological.

    “Only a few months ago Nigeria was on fire because members of the National Assembly bought cars costing over thirty million naira each with our money, in order to carry out so called oversight duties, during this period of financial drought and famine.

    “We called them well deserved names, like cruel, inhuman, malevolent, etc.

    “My dear friends, you will not believe that with all we are going through, the NDDC (Niger Delta Development Commission) which is the other name for uncompleted projects, has just bought over 70 cars.

    “Of those about 8 of them are Super Lexus Jeeps costing 78 million naira each and about 10 are Land Cruisers costing 63 million naira each.  This money was taken from funds for infrastructure, water, housing, hospitals, school, etc., without conscience; recklessly without a thought for the wretched people of the Niger Delta.

    “These huge sums where plundered from their allocations, from the Federal Government.  And yet, the Managing Director was ironically reported in the Nation Newspaper of 6th February, 2017, (pp. 1-2) that the NDDC lacks funds to execute projects and was in debt to the tune of 1.2 trillion naira.  Hear this lament.

    “The Managing Director of the Niger Delta Development Commission (NDDC), Mr. Nsima Ekere, has lamented the N1.2 trillion debt burden facing the new management of the commission.

    “To the MD, the over $40 billion received by the region in the past 10 years was frittered away.

    “He said the NDDC must now find a way around the huge debt owed by the past board while carrying out to free funds for urgent development projects and programmes,” he said.

    “On the fund that has accrued to the commission in the past, he said: “There is little evidence to show for the sums spent,” he added

    While some of those been accused of wrongdoings including the NDDC have faulted Sagay,  it is very important for the government to really take measures to end stealing and fraudulent practices in the public service.

  • APC candidates and party loyalty

    Upon the formation of All Progressives Congress (APC), ahead of the 2015 polls, not many Nigerians gave the party chance of survival talk less of winning the 2015 polls. For this obvious reason and typical of the Nigerian political class, some founding fathers of the party suddenly jumped ship to the ruling Peoples Democratic Party (PDP) ahead of the 2015 polls. Also some visionary PDP members who were fed up with the PDP’s misrule and saw prospects in the APC willingly defected to the APC.

    This development never deterred these APC faithful, who truly and genuinely believed in the party’s philosophy and manifesto. Theirs were that having worked so hard to form the party, it was of no use dumping the party at the middle of the road. This was a true mark of party loyalty that is uncommon among Nigerian politicians.

    With General Muhammadu Buhari’s emergence as the party’s presidential candidate, these loyal party members and candidates doubled their efforts to ensure the victory of the party at all levels. At the end, their inputs paid off with APC’s presidential victory at polls against the ruling PDP, which is the first of its kind in the country’s political history.

    Coming on the altar of the change mantra, expectations and hopes were high among the APC faithful, having worked so hard for the party’s victory. Disappointedly and right from the onset of President Buhari’s government, it appeared the government had quickly forgotten how party loyalty and hard work by committed party members gave the party victory at the poll.

    Obviously, initial appointments by the government indicated that party loyalty has been exchanged for comradeship. Eyebrows were raised, but government spin-doctors defended the action, arguing that it was too early for party loyalists to complain of being abandoned or side-lined.

    These loyalists, especially the House of Representatives candidates that lost their elections as wounded warriors endured and persevered, hoping that things will get better. Unfortunately, almost two years down the lane, the trend has not changed.

    In view of this, many concerned party leaders have expressed their fears and worries over the development, which is unprecedented in party politics in Nigeria. They alleged that the APC-led government has been ambushed and hijacked by few individuals that contributed nothing in the party’s victory at the polls.

    One of Buhari’s long-time political allies and one of the founding fathers of the APC, Alhaji Buba Galadima complained bitterly over the development in his recent interview in The Guardian newspaper of September 18.

    Galadima said: “Up till now PDP is intact and about 99 percent of the offices of 557 agencies of the Federal Republic of Nigeria and even the political appointments by our APC government are PDP members. These people were not known to have participated in bringing this government into office.”

    Appeared to be worst hit by this development are APC House of Representatives candidates that lost their elections in their constituencies to the PDP desperate machineries and other unforeseen circumstances beyond their control.

    The group, which operates under the guise of Forum of All Progressives Congress (APC) 2015 House Of Representatives Candidate (APC 2015 HORC) is made up of renowned professionals or accomplished politicians. They are the closest to the grassroots in terms of their reach, number and strength. Currently, they are made up of 135 members and have continued to carry the banner of the party in their respective constituencies.

    Truly, they came together on realisation of the need to encourage each other to keep the flame of APC burning and the party’s flag flying in their respective federal constituencies, in order to overcome the setback suffered by the party in losing the federal seats of those constituencies and to checkmate the impact of the loss in future elections with a view to recovering those seats for the party in the next available opportunity.

    They have also expressed their satisfaction with the way and manner the President has piloted the affairs of the nation since assumption of office and congratulated him on the landmark accomplishments so far recorded especially in the areas of security, anti-corruption, diversification of the economy and management. So also is the President’s handling of anti-terrorism efforts in the North East and militancy in the Niger Delta and elsewhere in the country. The recent release of about 21 Chibok girls by Boko Haram, they see as a crowning glory to President’s effective approach to the challenge of Boko Haram insurgency.

    They have equally expressed confidence in the ability of the President and capacity of the APC’s federal government to pull the nation out of the current economic recession and wholly endorsed the economic policies and palliative measures put in place by the President to tackle the current economic challenges.

    Prominent members of the 135-member forum include its chairman, Musa Danjuma Goyo, Secretary Chibuzor Obiakor. Others include former members of the 6th and 7th House of Representatives.

    All members of the forum have paid and still paying their dues in the APC, despite the situation on ground. That no doubt is clear mark of undiluted party loyalty that deserves recognition, considering that party politics anywhere in the world do not only encourage loyalty, but reward loyalty appropriately and handsomely. That is what Buba Galadima, Rochas Okorocha, Bisi Akande, and other party stakeholders are clamouring for in the party, before it becomes too late.

     

    • Dr. Agaba, a development expert wrote from Wuse, Abuja

  • Timi Frank’s strange loyalty

    SIR: Going by the interview broadcast on Channel Television featuring the deputy National Publicity secretary of APC, Mr Timi Frank where he shared the genesis of his grouse with the National Chairman Chief John Oyegun, one begins to wonder what Frank’s philosophy of party politics is and his orientation of loyalty.

    Timi Frank did not find it self-indulgent and egocentric to attempt to pull down the house and remain in default mode of nebulous fault lines because he was not allowed to act as substantial publicity secretary.

    What is more worrisome is Timi’s chemistry of loyalty which he didn’t consider deserving of his party but of former Vice President Atiku Abubakar.

    One rarely hears Timi Frank defend his party except to amplify every perceived differences among members to the pedestal of party implosion.

    What are Timi’s thoughts on critical national issues like anti-corruption programme, Chibok girls’ captivity, National Assembly crisis and other issues demanding the intervention of an executive party member of Timi’s standing.

    Femi Fani-Kayode does not seek any position in PDP for him to defend his party and articulate his opinion on pressing national issues.

    As long as Timi Frank’s interests are neither nationalistic nor party-centric, it remains precariously trite and should be treated as mere rouble-rousing.

     

    • Bukola Ajisola.

    bukymany@yahoo.com.

  • I have unalloyed loyalty to Benin monarch, says Obaseki  

    I have unalloyed loyalty to Benin monarch, says Obaseki  

    Edo State Governor-elect Godwin Obaseki has pledged to uplift and respect the Benin traditional institution.

    The politician said he and his family had unalloyed loyalty to the royal family.

    In his congratulatory message to the 40th Oba Ewuare II of Benin, Obaseki expressed joy that the new monarch was installed when he would assume office as Governor Adams Oshiomhole’s successor.

    The governor-elect said he would rely on the prayers and advice of the oba to have a successful tenure.

    During last Thursday’s coronation, Oshiomhole promised that Obaseki will maintain the same cordial relationship with the oba.

    Obaseki, who will be sworn in on November 12, said: “For guidance and advice, I would be counting on the oba to succeed as governor. It is particularly auspicious and most heart-warming that events leading to the oba’s coronation are coming at a time I am fortunate to be the elected governor of the state.

     

  • LOYALTY IN GOVERNANCE AWARD HONOURS AMBODE, OTHERS

    MARITIME Media Limited, organisers of the Loyalty in Governance Award have announced winners in the second edition of the reward system.

    In all, six state governors, one from each of the six geopolitical zones emerged. They are Governor Akinwunmi Ambode (South-west), Governor Nyesom Wike (South-south), Governor Ifeanyi Ugwanyi (South-East), Governor Nasir ElRufia (North-west), Governor Kassim shettima (North-east) and Governor Abdul-fatai Ahmed (North-east).

    Governor Ambode was honoured for his pioneering effort to lighting up, improving security in the state, putting Lagos in the global map as an oil producing state; introducing a 25billion naira citizens empowerment fund, among other landmark achievements.

    Governor Nasir El Rufai of Kaduna State is also being honoured for his outstanding leadership style in the state. The 10,000 trees to keep Kaduna green, the war against illegal structures, the mandatory issuance of building plans and C of O for structure in Kaduna and his impartial enquiry into the Army/Shitteclash endeared him into our team of researchers, thus making him one of the shinning lights in our present democratic experience.

    In Enugu, Governor Ifeanyi Ugwanyi has endeared himself to his people with 30% equity contribution to the civil servants housing scheme and the purchase of no fewer than 100 units of one bedroom flats at Elim Estate and 155million naira approved for rural electrification.

    In yet other categories, the Dangote Group emerged as “Nigeria’s Corporate Brand of the Year” in appreciation of its huge investment in the world’s biggest oil refinery in Lagos with a 650bpd refining capacity.

    Other winners of the award are the speaker of the House of Rerpresentatives Rt Hn YakubuDogara and Babatunde Fowler who was voted the “Most Outstanding Chief Executive of the Year” Held every four years, organizers say that the Loyalty in Governance Award is predicated on the need to reward loyalty and governance, deepen our current democratic experience, honour deserving Nigerians and corporate bodies for their contribution to the stability, unity and growth of our country.

  • Reveling in loyalty programmes

    Reveling in loyalty programmes

    Shoppers want loyalty benefits such as discounts and free products. They think these would increase their happiness and retain them as customers, but how true is this? Asks TONIA ‘DIYAN

    Loyalty programme is a reward programme offered by a company to customers who frequently make purchases. A loyalty programme may give a customer free merchandise, rewards, coupons, or even advance released products.

    This has been in existence for decades in developed countries like the United States  (US) and Europe where it has become more relevant by personalising offers, rather than just rewarding bulk spending, and by embracing new technology. In these countries, it is logical to predict that instead of shoppers handing over a plastic card at the till, their smartphones will recognise that they are in the store and ping over an electronic voucher for their favourite brand. Retailers in this part of the world are also trying to imbibe same in their businesses, but how far can this go?

    Recalling how she started with her first loyalty card, Rita Banks, a regular shopper at a Lagos health shop, said loyalty cards have added value immensely to her life as she has been able to rack up a ton of points, which translates into discounts and coupons. She said the little loyalty card, as she called it, has grown to help her save over the years.

    “Loyalty programmes can be really fantastic. You can usually join for less than five minutes of your time and if you’re a frequent shopper the deals can be really worth it,” she told The Nation Shopping.

    Banks said: “If you’re a regular shopper and you do not have the loyalty card, you’re just throwing away money. Even if you’re an irregular CVS shopper, it’s worth signing up for.”

    She said the card tracks what one spends on and provides people with coupons geared towards shopping habits, adding: “To sweeten the deal even further, after certain amounts of spending, a shopper can also be entitled to cash rewards, though little.”

    The Nation Shopping visited some stores in Lagos that are  rolling out reward programmes. It was observed that a particular store in one of the Lagos malls rewarded ice cream lovers. For example, if one stops by at the store anytime in the week, the 13th cup of the day  is on the store management, but only if the 13th shopper has the rewards card. The shopper would use it like a gift card that keeps refilling and each drink or food item is worth a star. Once the shopper collects 12 stars, the next item is free. The store said it also often offers discount codes received when signed up for its rewards system and offers double stars on some items at certain times, to help the shopper get to his 12th star quicker.

    Some stores would give freebies not only when a shopper patronises them, but also on his birthday every year.

    For some stores, every 200 points earned gets the shopper a free reward, and every naira is worth five points.

    For Makeup Mavens, the Beauty Insider card is worth it. Some beauty shops can be pricey, but have excellent coupons one can take advantage of throughout the year.

    Additionally, rather than gift cards, the points racked up through purchases allow access to exclusive items and a coupon for a free item on birthdays each year.

    Some shoppers also told The Nation Shopping what they feel. Lucky Edehor said: “Loyalty cards make an awful lot of sense for the retailers, but they are less attractive for card carriers like me because I haven’t benefited in anyway since I was introduced to it.”

    Loretta Ede said: “Loyalty programmes are meant to break down barriers between customers and businesses. By identifying the factors that may cause customers to leave, a retailer can customise a fee-based loyalty programme to address those specific obstacles, but in this country, greed won’t let it work like that.”

    Bukola Adebayo said she has Loyalty card from Justrite, a neighbourhood grocery store, but was recently rewarded with a diary after six months of purchase. She said she is not impressed.

    Another shopper, Jackson Olatunji, got two pens for being loyal to Park ‘n’ Shop and has decided not to patronise the shop for sometime. “I was given the pen during a raffle and I left the place so disappointed. A shop like this should do better,” he said.

    According to experts, understanding customers means understanding their values and sense of worth. Depending on the business, some customers may find more value in non-monetary or discounted rewards. To them, while any company can offer promotional vouchers and discount codes if they want to, businesses that can provide value to the customer in ways other than Naira and Kobo have a unique opportunity to connect with their audience.

    Some business owners, however, partner another company to provide all-inclusive offers. They engage in strategic partnerships for customer loyalty, which is also known as coalition programmes. This, they are aware, can be super effective for retaining customers and growing their company.

    For example, a dog food company, could partner a veterinary office or pet grooming facility to offer co-branded deals that are mutually beneficial for the business and customer. When customers are provided with value relevant to them, but goes beyond what your company alone can offer them, they understand that their needs are cared for. Apart from that, the business network will grow to reach the partners’ customers too.

    Others have turned their loyalty programmes into games to encourage repeat customers and solidify their brand image. In this case, customers enjoy having little fun, but frequent purchases. This type of programme, they say, can make the buying process both fun and engaging.

    Casey Winters, a member of an online food ordering and delivery website called GrubHub, advised her colleagues on LinkedIn that: “You should strive to think of your programme as constantly evolving to stay interesting to your users. This will make your programme stay effective for longer as well as give you the flexibility to weak elements to make them more interesting to you as business. I have seen many companies stuck with a programme they no longer think is effective, but too afraid to shelve it because of potential user backlash.”

    At her store, once customers place three unique orders, regardless of price, they get to play a game for a chance of winning free gifts. Shoppers choose one of four cards and have a 25 per cent chance of winning a free dessert, drink, GrubHub credit, or other items.

    Considering how many businesses offer loyalty programmes in this part of the world, experts have advised that business owners should build loyalty by providing first-time users with awesome benefits, hooking them in, and offering those benefits with every purchase they make.

    Some store owners, who have implemented a customer loyalty programme, shared with The Nation Shopping the tactics worked and the one that did not. Some of them were able to measure the effectiveness of their loyalty programme.

    Casabellla Beauty Store Branch Manager, Funke Alarape said the loyalty reward started in her store few years ago and was introduced to appreciate loyal customers. She said for every item purchased from the store, shoppers get discounts  which accumulate whenever they shop.

    Her words: “We give the card to our customers as they step into the store and patronise us, and for every purchase made, 2.5 per cent given which can be used to buy from us and Health Plus, who we are into partnership with on the reward  programme. Our cards do not have duration, our customer can use them for a long period.”

    She added that aside the discount giving, they notify their card holders first if there are promotions on ground.

  • The waning influence of brand loyalty

    The waning influence of brand loyalty

    The power of brand loyalty seems to be waning, gradually. Consumers now choose what is readily affordable ahead of their preferred brand. What could be responsible for this? TONIA ‘DIYAN writes

    Kudi Ogunsanya is a regular traveller on a particular British airline carrier. For her, flying with this airline to any destination in the world has been a tradition of over 40 years, which she inherited from her parents. So strong is her family’s loyalty to this airline brand that for her and her household, travelling outside Nigeria is either with this British carrier, or no trip. But her continued loyalty to this brand was recently put to test, especially in the face of the biting harsh economic realities in the country.

    Recently, when she had to make a choice between flying her preferred airline and others plying the same route from Lagos to America, she finally settled for a Middle East airline for her trip. Her decision was hinged on the over 45 per cent fare differential between both airlines. For her, the difference in fare is enough to pay for other things like shopping in America.

    “Well, I think I have had enough of this loyalty thing to this airline. Now, I have to face the present economic reality, and consider my pocket. I have to now patronise ‘pocket friendly’ products or services ahead of consideration for brand loyalty, after all, any airline will get me to my destination safely irrespective of the time difference,” Ogunsanya told The Nation Shopping.

    Her choice is one of several now threatening consumers’ loyalties to a brand, especially with the array of competing brands and services all coming at varying prices but offering same quality.

    Ogunsanya’s choice is better captured by another consumer, Mr. Matthew Smith, who contended that consumers have become more ruthless in their hunt for value. “Consumers are being much savvier in their shopping habits, because they now place a lot of factors ahead of loyalty. This is why shopping is now done across the discounters and premium retailers; and this trend will only continue,” he said.  And for some consumers like Omoba Adeyinka, exploring new brands is the attraction. “My old brands are common and I like to explore new things,” he said.

    Literarily, brand loyalty is an attachment to a particular product or service from a certain manufacturer, such that irrespective of any circumstance, a consumer remains committed to the product of a manufacturer. Now the tide is changing.

    Research have shown that consumers or shoppers are no longer keen when it comes to brand loyalty- a development that is believed to be swelled by a retail environment now being increasingly driven by promotions. While it is worthy of note that deploying price promotion to boost sales has always been an important part of retail trading and brand loyalty, yet, in recent times, it has also become more of a concern to retailers as the number of products sold on discount continues to rise, thereby cutting down on retailers’ profit earnings. This price promotion strategy is just one of the several ways retailers now strive to outdo one another.

    It is now common to see retailers and manufacturers deploy various promotional strategies, especially competitive product categories all to ensure that a product or service either retains its loyalists or attract new ‘converts’ to it. This is why if one retailer introduces a deal, others copy it and even add a new idea. The strategy has proved to be effective considering that some shoppers trade-off their loyalty to a particular brand ahead of price and are always happy to buy across price tiers. So, the same shopper, who will buy a brand ‘A’ today, for instance, is the same that will buy a brand ‘B’ tomorrow, depending on what is on offer/discount.

    Aware of consumers’ frequently changing habits, manufacturers have had to remain on their toes to ensure that their brands keep talking to its loyalists and at the same time, trying to recruit new patrons to their products. This, according to experts, is due to the fact that consumers can easily compare prices when products are on the shelf, leading to more price-matching, which has had a major effect on the promotional landscape, thereby resulting to brand disloyalty amongst consumers.

    Perhaps, this is why in the Lagos metropolis, it is said an average of 42 per cent of consumers have a brand in mind before they go shopping, while the remaining 58 per cent go for any brand that suits their pocket and meets the quality required such as   Semovita and Semolina. Even in categories such as the beverage sections where consumers are found to be more loyal, findings have it that 51 per cent of shoppers pre-plan which brand they are going to buy prior to setting foot in a shop, while 30 per cent change their mind while in the shop and an average shopper buys the cheapest items on the shelf.

    Buttressing this point is a Lagos-based cosmetics manufacturer. The manufacturer, who pleaded to remain anonymous, explained that while his products remains very competitive, but the bulk of his sales are from the promotions he offers from time to time. For him, he finds relatively little loyalty, as consumers choose what is on offer before their preferred brand.

    However, experts have warned that retailers should pay close attention to the types of deal they offer because a higher level of discount does not mean higher return on investment. They should also consider whether to discount their premium brand, regardless of promotions or support a weaker performing brand with the hope of increasing sales. This is because it has been found out that sometimes, during a week-long sales promotion, it will be possible for the premium product to record sales that triples smaller brands.

    But come what may, some consumers say they will remain committed to their brand. A lawyer, Mrs. Aderinola Abiola, is one of such ‘die-hard’ brand loyalist. She explained that she prefers staying glued to her favourite brands because they have proved to be trustworthy and have never failed her. “I don’t see any reason why I shouldn’t be loyal to my brands. As the saying goes, the devil you know is better than the angel you just met,” she said.