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How to Create Customer Loyalty that Lasts

May 13, 2014 Conferences No Comments Email Email

“The biggest mistake that companies make is evaluate the internet as just another “marketing channel,” according to Krishna Kumar “KK” Santhanam, Managing Director, Additude.

“The internet offers multiple touch point opportunities to interact, get to know and more importantly impress customers. Only after a good communication channel is established with customers can Chief Marketing Officers (CMOs) create loyalty that lasts,” he adds. 

A new-media marketing agency, Additude is a sponsor company at the marcus evans CMO Asia Summit 2014, in Kuala Lumpur, Malaysia, 26 – 27 May. 

– What do companies operating in the internet age need to know about marketing in this environment?

The internet has permeated every aspect of our lives. Unlike new media in the past, such as TV or radio, the internet as new media has not only become the medium of entertainment and information, but also an integral part of our everyday life. If we are travelling, we book tickets online. If we want to buy some white goods, we research the brands and products online well before we find ourselves in front of a salesperson struggling to outsmart us with their limited knowledge on the product while we educate them on the pros and cons of their competitor’s products. Companies cannot evaluate the internet as just another marketing channel anymore. 

– How should marketing tactics be applied to the social-web setting? What mistakes do CMOs in Asia make?

A comprehensive analysis of touch points for the product, media habits of customers and typical purchase pattern of consumers in the category need to be analysed. For example, big ticketed white goods and electronics are well researched before being bought, while fast-moving consumer goods are chosen based on their price and brand equity. The latter tend to have more loyalty attached to them as they are personal in most cases. 

Therefore, “low propensity to loyalty” products require multiple touch points and a convincing proposition for every product. 

After analysing the touch points and media habits, brands have to find a way to access their social graph which will help to get an intimate knowledge of customers and make meaningful communication. Having understood the need to get this information, Additude has devised a modern loyalty program that captures the purchase data for any participating brand at the point of purchase. So we know the location, time of purchase and which customer. 

– How can social media be utilised for brand augmentation?

Social media is the only channel capable of sourcing social data on our customers. It needs to be used to collect the intimate data about customers and products for a better communication with them. That will lead to more loyal customers, which then leads to better brand augmentation.

Knowledge of customer preferences and purchase behaviours will pave the way for a one-to-one communication channel with customers, which helps create loyalty that lasts.

– What technologies do CMOs in Asia underutilise?

Asia, unlike other markets, makes efficient use of available technologies. However, it seems that CMOs are not planning for the inevitable smart phone penetration happening in Asia anytime soon. 

The brands that plan and take advantage of smart phones when they become mainstream will have an enormous advantage over the late adapters.

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