Tuesday, September 18, 2012

Kellogg looks for loyalty

A big part of any company's success is customer loyalty. If people like your product and make it a habit to keep buying it you have a winner on your hand.

Earlier this summer Kellogg announced a Family Rewards program intended to get consumers to stick with their products because of the lure of rewards, prizes and special offers. Quite simply many Kellogg's branded products will contain a special code printed inside, You enter the codes on your computer or phone and collect points.

In a highly competitive cereal and snack food marketplace working to obtain customer loyalty is a big feat. I wonder, however, whether most customers could be bothered with the whole process. Sure there are some couponers, etc. who look for this type of thing, but I'm not convinced it will make a difference. In fact, I've seen or heard little buzz about it outside of Kellogg's own promotions.

Real customer loyalty comes not from promotions or gimmicks, but consumers who are passionate about a product. That comes from innovative, strong products backed by strong branding. Kellogg should be focusing more on that.

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