Asking Permission for Loyalty: marketing’s influence on customer attitudes Luke Taylor University of St Thomas

Why is this important? By 2004, marketers will be sending over 200 billion s each year (Rizzi, 2001)

Catalyst for Research Question “Well-executed communications can be an extremely effective way to earn the confidence, respect, and most importantly, [the] ongoing business of customers.” (Rizzi, 2001, p 56)

Research Question Does opt-in messaging promote customer loyalty?

Background Permission or “Opt-in” Marketing Good Marketing Customer Loyalty

Permission Marketing “It [involves] contacting individuals with targeted offers or messages in an agreed-upon format at agreed-upon intervals.” (Lyons and Fletcher, 2002)

Good Marketing Personal Anticipated Relevant

Customer Loyalty A combination of attitudes and behaviors, including: repeat purchase customer satisfaction recommendation to others (William D Neal, cited by Grisaffe, 2000)

Most Popular Purchase Items Books Travel Music

Methodology survey Sent to 156 employees, all users, of a large company Many employees do at least some travel

Survey Questions Identify airline Indicate opt-in or not Give information about purchase, recommendation, and level of satisfaction Provide simple demographic data

Two Key Groups Recipients Non-Recipients

How many trips by air have you taken in the past 12 months? 67% of Recipients took 1-5 trips 67% of Non-Recipients took 1-5 trips

How many pleasure trips by air have you taken in the past 12 months? 97% of Recipients took 1-5 trips 94% of Non-Recipients took 1-5 trips

Are you a member of your specified airline’s frequent flyer club? Frequent Flyer Recipients85% Non-Recipients55%

Do you visit your specified airline’s website? Yes Recipients94% Non-Recipients64%

Have you recommended your specified airline to a friend, relative, or other acquaintance? Did Recommend Recipients59% Non-Recipients64%

Have you seen an advertised fare and told someone else about it? Referred to Ad Recipients71% Non-Recipients48%

Please indicate how you feel about your specified airline. Neutral Feelings Like / Strongly Like Recipients18%74% Non-Recipients41%50%

Please indicate your level of satisfaction with your specified airline. Satisfied / Very Satisfied Recipients77% Non-Recipients72%

The Answer Does opt-in messaging promote customer loyalty? Research seems to say “no”

Conclusions A good sales tool A decent advertising medium Not good vehicle for customer loyalty

Recommendations Larger sample size Additional product categories

Discussion Price may be only important factor Illusion of personal relationship

Questions?