Issue: 5
Date: 11 May 2009
Contact us: newsletterza@accor.com
Drawing Customer Loyalty

The global recession is still rife among us with some of the wealthiest and most well-known international brands and companies cutting jobs in the thousands. Some sources preach the gloom that the worst of it is yet to hit South Africa. Retail sales in February alone dropped 4.5%. So, why all this talk of misery? Although managing, protecting and building your brand as well as keeping employees motivated may be difficult in the current economic period, Accor Services considers this a challenge worth taking on.

Consumer spending, which drives 60% of South Africa's economy, has declined significantly as consumers become increasingly aware of high debt costs and the potential loss of jobs. Consumer spending habits have adapted with vigilance to the recession, and the decrease in the amount of money spent has becoming particularly apparent in those retail sectors that are more susceptible to interest rates. Spending is more prudent and consumers are progressively more selective, putting brand names on the backseat in their search for lower prices of goods offering the same quality.

With the increased economic pressure, consumer decision making is much more involved. An item might previously have been paid for with little thought - simply on the notion of desire - whereas consumers are now questioning the necessity of the product, its benefits and possible alternatives. In a retail sector where there is little difference in the price or quality of a product, the decision-making cues that influence consumer buying behaviour and the consumer's motivation become the sought after gold nuggets of retailers and brands. Among the decision-making factors that influence consumers is the subconscious awareness of needs. One of the more well-known means of measuring these is known as Maslow's hierarchy of needs. From the most basic to the tip of the hierarchy, these needs are physiological, safety, love and belonging, esteem and self-actualisation.

Consumers are primarily drawn to the core offering of any product, as the purpose of the product directly meets an acknowledged need. Where the core offering of products are similar or the same, and prices are near equal, it is the superiority of quality or the superiority of service that will draw customers and encourage loyalty.

Engen, one of the world's most advanced fuel technology companies, boasts 27% of the South African petroleum market. Although Engen petrol stations are located at key points on the major national highways and inner city routes in South Africa - as are their top competitors - it is their customer service that they are renowned for. Upon entering an Engen garage station consumers are made to feel welcome, that their time matters and that their consumer needs will be seen to efficiently. By making customer service a top priority at every Engen petrol station across South Africa, Engen has succeeded in differentiating itself and gaining customer loyalty from other competitors that offer a product that is the same in price and near identical quality.

Engen achieves this customer service delivery by means of the Dynamic Service programme - an incentive programme run by Accor Services with the purpose of motivating customer service by Engen dealers and pump attendants on the forecourt. Dynamic Service is an incentive programme built on an online platform that links dealerships countrywide. By following a point-by-point checklist for every customer, Engen employees stand the chance to be rewarded with a gift card on a monthly basis, if given top results by the "Mystery Customer." The gift card inspires buy-in from the employee, resulting in motivation for peak performance on the forecourt, and thus indirectly encourages consumer loyalty.

For more information on how incentive programmes can build your brand or encourage customer loyalty, please click here.

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Registered office: Accor Card and Voucher Services Pty Ltd, Melrose Piazza, Melrose Arch. Accor Card and Voucher Services Pty Ltd is registered in South Africa: 2005/010672/07 VAT number: 4100224478 ©2008 Accor Card and Voucher Services Pty Ltd. The entire content of this newsletter publication is protected by copyright. Full details are available from Accor Services. All rights reserved. No part of this newsletter publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means – electronic, mechanical, photocopying, recording or otherwise – without the prior permission, in writing, of the copyright owner. Although every effort has been made to ensure the accuracy of the information contained in this publication, the publisher cannot accept any liability for inaccuracies.