Okay, so while the Dow hangs out at around 10,000 points, here’s some advice on how to give your business a serious boost without increasing your marketing expenditures (and maybe even reducing them): “Perkonomics: Why perks and privileges are the new currency” over at TrendWatching.com (hat tip to AdPulp) is a pretty interesting take on how to increase customer loyalty and create a buzz for your brand even in tough economic times.
“What in blue blazes is perkanomics,” I hear you cry? Hold your horses there Tonto. We’re getting there. According to the folks at TrendWatching.com, perkonomics can be explained thus:
“A new breed of perks and privileges, added to brands’ regular offerings, [which satisfies] consumers’ ever-growing desire for novel forms of status and/or convenience, across all industries. The benefits for brands are equally promising: from escaping commoditization, to showing empathy in turbulent times. One to have firmly on your radar in 2009.”
Did you catch that part about escaping commoditization (not falling into the BOGO trap)? Good. Let’s continue.
TW continues with this:
“Consumer infatuation with perks and privileges isn’t new. For years, airlines, hotels, credit card companies and private banks have been cleverly rewarding their most valuable customers with surprises, status symbols and convenience.
But as we move towards a consumer society that’s based more on experiences, on status stories, on the ephemeral—and in which, for many, time is now the only true scarcity—expect perks and privileges to become an integral part of every B2C industry and sector.”
Perks you might already be familiar with: Frequent flier miles, preferred customer clubs, discount cards, special pricing, express delivery, concierge service, complementary XYZ, free upgrades, shorter checkout lines, convenient parking, etc. Essentially, the perkonomics idea takes the simple concept of “loyalty rewards” to the next step: Brand-related social elevation (however ephemeral it may be). The dot-connect end-to-end: “My loyalty to Brand ABC makes me more special than people who don’t share the same relationship with the brand.”
The result (if done right):
- Perks bring much-needed love (if not FREE LOVE), in upturns and downturns, potentially leading to more ‘brand love’. (I hate to call it brand loyalty, but at the very least, it encourages a very strong brand preference.)
- Perks help commodity-like industries stand out by conferring a (renewed) sense of uniqueness. Adding perks often requires the ability to partner with other products or services, so brands with the best partnering skills—and therefore access to the best exclusive offers—will win.
- Perks can give you the leading edge when it comes to attracting first-time customers.
- Perks can make for great if not invaluable PR [and positive WOM]; customers will tell others—perks are excellent conversation starters—while the media (trend watchers included) love a good perk story.
- Perks can help make boring companies interesting again, and thus more desirable.
- Perks can help cultivate more desirable brand perceptions and associations—think anything from showing you actually care about your customers (gasp!) to showing you care about the environment, offering eco-perks.
From a business opportunity standpoint, focusing on perks can absolutely give you an edge when it comes to differentiating your brand from others even if your products are not superior, and by doing so may be the only way to elevate a brand without actually making improvements outside of “delighting” loyal customers. The trick is to do it in such a way that doesn’t come across either as a ploy to get more information out of them, and two, in a way that doesn’t require them to jump through hoops. Perks are perks. If perks start to become hassles, they stop being perks. A “delight the customer” mentality and focus across all touch points is absolutely vital to the success of such a program. The second a customer expecting a perk gets the runaround from a disgruntled or less-than-ready-to-serve company brand ambassador, you’re done for. (Managing human touch points well is one of the trickiest aspects of delivering on the promise of perkonomics.)
PERKONOMICS is an aspirational trend; i.e. a trend that generously offers you—marketer, entrepreneur, brand manager—the chance to be a trendsetter, especially if you work in a sector or industry not yet big on perks.
And as perks are about delighting and surprising consumers, you should have no trouble coming up with a few quick ideas that can be implemented immediately and cost-efficiently. Talking about costs: as perks are an integral part of your marketing strategy, shifting a part of your mass-advertising budget to get some PERKONOMICS innovations off the ground is more than justified.
Check out the entire report here. And please, please, please, when you start looking into ways to incorporate some of these ideas into your marketing plan, don’t end up settling for 5% discount coupons and dime-store “prizes” with your logo printed on them. (Trade show giveaway pens, decals and buttons don’t even come close to perks.) Take this as seriously as you take the success of your brand.
If you need help figuring out how to do this, give me a call or shoot me an email. I’ll be happy to help or hook you up with someone who can.
Have a great Tuesday!
Photo by Chris Wray-McCann