A New Twist on Retention

Ever hear the expression “All I ever needed to know I learned in kindergarten?” I’m reminded of this each fall when I witness the retention practices that happen at my children’s dance studio. No matter how enthused or how bored the children are with their dance lessons, they come to life when the holiday performance draws near. The reason for this is that they know that with another year of dance, they have the possibility of being cast for certain dance positions associated with that level. It is almost impossible to get the kids to try a different sport.

 In loyalty programs, the best retention tool is often the elite program with pre-defined and published benefits. In airline programs for instance, elite members know they will receive first class upgrades and bonus miles. I wonder if the dance school retention practices could find their way into traditional loyalty programs. Could we “dangle” the possibility of some exclusive and high-end benefits to members as they become more loyal or more tenured? Would members avoid using competitors to increase their chances of getting these benefits? Like the dance school, you have to be careful not to disappoint members that get something less than what they expected. However…if the member tries hard enough, there is always a possibility of getting what they want the next year.