Book Review - Loyalty Myths: Hyped Strategies That Will Put You Out Of Business ? And Proven Tactics That Really Work

Did you ever wonder if some of those age old sayingsindependent; you must manage them hand-in-hand.?
about marketing are true? For instance, we?ve allThe authors do a good job of going through how to
heard ?It costs five times more to acquire a newbuild and measure a loyalty program around these
customer than to retain a current customer.? But does?truths.?
anyone have any proof of that? That is exactly whatThe book is an extremely fast paced, entertaining
a group of authors set out to do in Loyalty Myths:read. Anyone reading the book with an open mind will
Hyped Strategies That Will Put You Out of Business ?agree with the authors? solid reasoning. In particular,
and Proven Tactics That Really Work. The authors,business owners, CEO?s, and anyone in marketing or
Timothy L. Keiningham, Terry G. Varva, Lerzan Aksoy,consumer affairs will directly benefit by eliminating
and Henri Wallard are all experts in consumer loyaltythese ?myths? from their business and implementing
and use their wealth of knowledge to dispel commonthe ?truths.? This book can have a very real impact on
myths and offer insight into what really works.your company?s bottom line. Many businesses
The book chooses and interesting format ? the firstmindlessly pour money into customer loyalty programs
six chapters are devoted to dismiss over fiftywithout taking the steps outlined in this book. For some
common ?loyalty myths? and the final two chapterscompanies, a loyalty program doesn?t even make
are used to learning about why customers are loyalsense. For others, their program needs a significant
and how a loyalty program should be managed. Eachoverhaul. This book will help you identify where your
of the ?loyalty myths? chapters contains severalbusiness is and give you the tools to make
?myths? grouped together by common themes, suchimprovements.
as Loyalty Myths That Subvert Company Goals andThe only downside with the book is the shear number
Loyalty Myths Regarding Employees. The chaptersof myths. Many of the ?myths? blend together and
both begin and end with an example pulled fromreaders would probably be more likely to retain the
industry that encompasses all of the myths mentioned?myths? if there were ten as opposed to fifty-three
in the chapter, with the actual myths discussed in the(similar to the seven ?truths?). The amount of myths
middle.also doesn?t allow for the authors to go into quite as
The authors spend a couple of pages banishing eachmuch detail as one would like for each ?myth.? There
of the fifty three myths. Some of the myths are thingsare several myths that aren?t so much dispelled in the
that we tend to take for granted, such as ?Companiesparagraph or two devoted to it, but within the context
tend to know their customers,? while others likeof the entire chapter. It just seems like it would have
?share-of-wallet increases as customer lifetimesmade more sense to combine many of the myths.
increase? would seem intuitively true. For each andOverall, Loyalty Myths: Hyped Strategies That Will Put
every one, the authors use solid historical data to dispelYou Out of Business ? and Proven Tactics That
the myth and show the negative business effects ofReally Work is a tremendously entertaining and
believing it.enlightening read. Anyone that has an interest in
The final two chapters focus on seven ?loyalty truths?consumer loyalty will learn a great deal of directly
such as ?Don?t manage for customer retentionapplicable information that can save their company
before you manage for customer selection? andmoney and help differentiate them from the
?Customer loyalty and brand imagery are far fromcompetition.