By Chai Lee Goi
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Additional resources for A Review of Marketing Mix: 4Ps or More?
So in addition to the costs of program rewards, lots of additional expenses go into managing, monitoring, and promoting enrollment in these programs. That’s where the Kansas City Fed study saw losses to both the provider and the customer. The main beneficiaries seem to be the vast network of service providers that profit from selling and managing these reward programs for companies and brands. At the root of the problem, again, has been a fundamental misunderstanding of the nature of loyalty, with the belief that genuine, relationship-based customer loyalty can be bought with rebates and rewards.
The revolutions in digital, mobile, and social technologies are taking us back to the way the human species has always prospered, from intimate relationships built on trust and loyalty. We have always been driven more by warmth than by competence in all of our human interactions. The sooner we gain a better grasp of the social science behind this simple truth, the better off we all will be. With a deeper, fuller understanding of how warmth and competence affect us all, you’ll understand better how you are perceived, and you may even expect better of the people in your life, including those who stand behind the products and services you buy.
You may even come to realize that we’ve made understanding the world around us much more difficult than it needs to be. It seems that every week there’s a new theory and explanation of how the world works—or doesn’t work. The best of these ideas have substantial elements of truth to them, but where is the logic in how they all fit together? indd 17 23-08-2013 14:47:48 18 The Human Brand ideas to work for a better tomorrow? The answer is warmth and competence. The unchanging compass to our success in the future lies buried deep in our past.