The Power of Loyalty. Roger Brooks B.

levels to the Starbucks program: WELCOME LEVEL, GREEN LEVEL, and GOLD LEVEL. Each level has its own set of benefits, and members can graduate to the next level by making ongoing purchases. You can receive additional details on the program by visiting starbucks.com/card.

      There are dozens of examples like Starbucks out there. My goal is to provide you thought-provoking insights on the importance of customer loyalty, customer loyalty programs, and customer loyalty strategies.

      If you are a small-business owner, entrepreneur, or corporate executive researching options for a new program or you work for a company that has an existing customer loyalty program you’re looking to enhance, I’m confident you’ll receive information here that will assist you and/or complement your current efforts.

      Administering a customer loyalty strategy demands a great deal of time, attention, thought, effort, sweat and tears, but there are few books written about the fundamentals of launching or enhancing customer loyalty strategies. My objective is to provide you with insights and value that will save you time and money in the end.

      I intend to take all the knowledge and experience I have on loyalty strategies and publish that knowledge indefinitely for my readership in the form of weekly e-mails, news articles, trade publications, and books. The Power of Loyalty is the first book of its kind on the subject of loyalty, but rest assured, it will not be the last book I write on this topic. There’s much to cover on loyalty. In this first book, my mission is to provide you with as much information as I can, as quickly as I can. This book will provide an essential foundation for understanding the principles of loyalty so you can begin to build or refine your own loyalty strategies around it.

      If you and your company have the determination, dedicated team, and commitment, there is no doubt you can build a first class loyalty program. Remember, this book is a tool, not a bible. Your loyalty strategy should complement your business, be it large or small. But be certain. Once you say go, hold on tight, because there’s no turning back. Initiating loyalty is an eternal strategy.

      Your loyalty strategy is without a doubt an unparalleled way for you to identify your customers and eventually change their purchasing behavior to become more profitable for your company.

      Ironically, it is also the best way for you to learn about the strengths and weaknesses of your own business. So start off by being loyal to your customers, and give them a reason to be loyal in return.

      Once you GET the fundamentals down, you will be on your way to mastering the art of loyalty. Start with the basics, and build your strategy around those values. As Coach Dunn told me, “Be loyal, and loyalty will be returned to you tenfold. It’s a law of life.”

      —Roger L. Brooks

       CUSTOMER LOYALTY PROFILE

       My Starbucks Rewards

      ABOUT THE PROGRAM: Membership is free for My Starbucks Rewards; however, in order to participate you have to purchase a gift card for $5 or more and register your Starbucks Card online. There are three levels of membership, and members earn 1 Star for every purchase made with the card. The more stars you earn, the greater the rewards. Immediate perks for Welcome Level include a Free Drink on your birthday and up to two continuous hours of free daily WiFi.

      WHAT I LIKE: You don’t have to visit Starbucks every day to reap the benefits. It sets tiers so all customers can participate—even firsttime visitors! As you graduate levels, the perks increase. Top-tier customers receive a personalized card for immediate recognition.

       FOR MORE DETAILED INFORMATION VISIT:

       starbucks.com/card

      ALWAYS TREAT YOUR CUSTOMERS LIKE THEY’RE MADE OF GOLD!^™

       ESSENTIAL STEP 1

       Recognize That Loyalty Is All Around You; It’s EVERYWHERE Loyalty

      IT’S REALLY NOT THAT COMPLICATED. Take a look around you—you are a consumer, and what you’ll read in this book is not astrophysics. It’s obvious you all know a little something about loyalty. I have lived and breathed it my entire career. It has become such a part of my being that an hour does not pass in a typical day when I’m not meeting, talking, writing, or thinking about LOYALTY.

      So what is loyalty, and what is all the hype about? Adopting loyalty as a strategy is a philosophical transformation in your thinking. A loyalty mind-set is having a profound and deep belief in your product or service. Loyalty believes in your business, your employees, and your customers. Loyalty understands that there is give and take. Loyalty believes that investing in your customers will deliver return. Your loyalty strategy is a win-win proposition.

      But what is the true definition of loyalty? Every company in every industry I have studied or worked with has its own. I’ll examine a variety of factors that will assist you in determining your own definition or possibly modifying your current definition of loyalty. In the end, it’s all about developing your own definition, applying that definition to your loyalty strategy, and motivating customer behavior as a means of reducing competition and increasing profits.

      To better understand the basic definition of the word loyalty, let me acquaint you with its roots. According to Merriam-Webster.com, the word loyalty originates from the root word, loyal, which dates back to 1531. Below are the definitions of the words loyal and loyalty.

       loy·al

      1: unswerving in allegiance: as faithful to a cause, ideal, custom, institution, or product 2: showing loyalty

      loy·al·ty the quality or state or an instance of being loyal

      By permission. From the Merriam-Webster Online Dictionary ©2010 by Merriam-Webster, Incorporated (Merriam-Webster.com).

      What a remarkable definition for the word loyal: “unswerving in allegiance” and “faithful to a cause, ideal, custom, institution, or product.” That is what you strive for every single day. You strive to win customer allegiance and faith in your brand.

      So why not make things easier on yourself? Why not initiate a loyalty strategy and put the tools in place to assist you with your efforts?

      When I think of the words loyal or loyalty, I also think of words such as dedication, fidelity, reliability, dependability, constancy, and steadfastness. I also think of the word loyalty when I think about how people are loyal to a particular cause, faith, sports team, family member, or spouse.

      And as a consumer, it’s amazing to think about the loyalty or unswerving allegiance you have and how faithful you are to specific brands or products. Loyalty is having the nerve and courage to stand behind a product, brand, or service in both good times and bad.

       Everywhere you go, everything you do, and everything you decide to spend your hard-earned money on has some connection to customer loyalty.

      People buy where they feel good buying. People spend