also fails to explain why a consumer is loyal
to a brand.
So broaden your perspective. Consumers
hold four currencies they can dedicate
to a brand: Spend, Talk, Engage and
Prefer. Referred to as STEP, each action
demonstrates the multiple dimensions
of loyalty at a very personal level. For
marketers, the value of STEP is that it can
Creating a Holistic Loyalty
Using the STEP model, loyalty planning
becomes a strategic process involving the
entire organization. The qualities you want
the brand to represent are defined and
translated company-wide. Every consumer
touchpoint is managed toward the same
The evaluation of consumer growth
considers all they do. This enables
significantly more personal loyalty-building
programs. For example:
scores might indicate there’s a problem
that could cause them to leave the
brand. Evaluating their Talk could
uncover what’s driving that issue.
might be considering the brand but
need a little extra incentive, in the form
of a promotion, to make a purchase.
might make outstanding brand
advocates given the opportunity, even if
their Spend isn’t the highest.
Prefer customers might welcome the
opportunity to provide feedback and a
discussion about a concern.
For beauty marketers, building loyalty
should no longer be a low-response,
low-return initiative. Consumer data can
drive every decision so communications
are precisely targeted and completely
customized for each consumer in real
time. Every action can be captured and
measured, and thus optimized for the
consumer. With improved relevance
comes higher responses, stronger sales and
If you put the consumer at the center of
every business decision, you’re on your way
to earning true loyalty. If you don’t, there
are countless competitors in the beauty
industry who will. Can you afford to resist?
NAOMI KASOLOWSKY, global
capability director for loyalty, leads the
development of dunnhumby’s retail and
brand loyalty vision and enabling capabilities.
Before joining dunnhumby, Kasolowsky was
senior director of consulting (EMEA) for
Her actionable growth strategies across acquisition and retention
levers have created large scale value for her clients.