We start the year 2022 in i360 by establishing cooperation with Paula Thomas hosting the Let’s Talk Loyalty podcast. As part of the cooperation, every two weeks, we will publish a bi-weekly translation of the transcript of the most interesting podcast interviews in Polish.
Let’s Talk Loyalty is a podcast aimed at loyalty marketing professionals who specialize in creating, managing and optimizing marketing activities aimed at building customer loyalty. People who, due to the intensity of their professional work, do not have time to read the trade press or participate in training. The goal of the podcast is to create a community of loyalty marketing professionals and a mutual exchange of experiences.
Paula Thomas has an MBA degree and is an Irishwoman living in Dubai. She deals with consulting using over 10 years of experience in working on loyalty programs in the telecommunications, energy, banking and airlines sectors. The podcast can be listened to at https://letstalkloyalty.com/ or the most popular streaming platforms, such as Apple Podcasts or Spotify.
Listen to announcements concerning the collaboration recorded by Paula Thomas
The first episode, entitled ‘Loyalty programs in the subscription model. An indispensable tool for a brand’s success’ is devoted to an issue which, on the Polish market, is a relatively rarely used model of running loyalty programs in the subscription model.
The episode is a transcript of an interview with Robbie Kellman Baxter – the author of The Membership Economy and The Forever Transaction, who works on a daily basis as a consultant on subscription models around the world. The transcription in Polish is available at this link
The main themes of the interview are:
- Subscription models, as a loyalty program technique, are widely used in the United States. Netflix was the precursor of the actions, and now the actions are used even by fast-food restaurant chains, such as Taco Bell, chain bakeries, such as Panera Bread, or even local airlines, such as Surf Air.
- The essence of the solution is to treat all your customers as members of a loyalty program. From a technical point of view, the solution is to charge customers a fixed monthly fee in return for certain services provided by the organizer.
- The key difference between an economy based on subscription models and treating all customers as members of a loyalty program is that subscription is a way of price formation that has no implications for loyalty or trust, while membership-based programs are a way of treating your customers by building up a community of loyal buyers.
- The basis for building a loyalty program operating in the subscription model is to understand the needs of your customers, get to know them and gain their trust, so that they can make purchases of their own free will not be dictated by the necessity caused by a high barrier to exit from the commercial relationship.
- The most effective subscription models are implemented in market channels that are not based on commercial intermediaries, where the producer/service provider has direct contact with the final buyer.
- The main risk of implementing models based on subscription prices is the excess of costs over the revenue during the free trial period offered to new members.