Research Friday: VIP Consumers Want To Share Their Rewards

When Will You Use This? 

 

Creating rewards for your most important clientele (i.e., “VIPs”).

What’s The Red-Letter Bite Today?

Many businesses often segment their customers according to consumption and loyalty, and offer exclusive products and services (e.g. special discounts, exclusive lounges) to reward the most loyal customers and make them feel a sense of status.

Many of these preferential treatment programs allow VIPs to share their special benefits with a guest, so called 'entourage'. Does the presence of an entourage affect a VIP’s felt status during the preferential treatment?

Current series of experiments* examine how the presence of guests alters the status during VIP experiences. Evidence support the hypothesis that experiencing preferential treatment along with one’s entourage enhances a VIP’s felt status, even when the exclusivity of the reward itself is compromised.

Addition To Your Bag of Tricks  

 

It has been known that preferential treatment affects one’s perceived status, can lead to stronger bond between company and customer, and increase customer satisfaction so you should try integrating it into your marketing too:

- As a common rule (the 80/20) the majority of your sales come from a small amount of customers so don't forget to reward that exclusive loyal group;

- If your budget allows, permit your VIP customer to experience preferential treatment with his/her entourage

*Brent McFerran and Jennifer J. Argo. "The Entourage Effect." Journal of Consumer Research: February 2014 {Thanks for the material}.


P.S. When you’re done reading, I’d love for you to share your experience with the VIP treatment? Leave a comment or Tweet me, let's chat!

P.P.S. Need some help on crafting your marketing message? Let's do this together.