Perkonomics – Perks and Privileges
April 12th, 2009 // 10:27 pm @ Fox
Have you heard of the buzzword ‘Perkonomics’?
Trendwatching.com coined this term in October 2008 to describe a growing trend where consumers are offered extra perks and privileges than the standard customer services.
PERKONOMICS: A new breed of perks and privileges, added to brands’ regular offerings, is satisfying consumers’ ever-growing desire for novel forms of status and/or convenience, across all industries. The benefits for brands are equally promising: from escaping commoditization, to showing empathy in turbulent times. One to have firmly on your radar in 2009.
http://trendwatching.com/trends/perkonomics/
I thought about this recently on an overseas trip. I was flying business class with Emirates and thoroughly enjoyed the chauffeur driven car that picked me up from my home and delivered me to the airport (1 ½ hour drive) as well as drive me home upon my return. The business class lounge was exceptional with free food and drink. I was able to board the plane early; my luggage was on the carousel first and the whole experience made me feel special and that Emirates appreciated my business.
The benefits to Emirates of this form of perkonomics are that:
- I walked away with a very positive customer experience (I could get very used to this)
- I will convey this special treatment to others (here I am writing about it)
- I will use Emirates again
Of course with the cost of flying business class, you would expect to receive special attention. I did expect to receive special attention while on the plane itself, but the before and after care were an especially appreciated perk.
Customer loyalty programs have been around for donkey years. Some companies reward their customers repeat business by offering special discounts or free products. I once worked for a company who granted their VIP customers special privileges. So if customer loyalty programs and VIP treatment are old-hat then what is the difference between them and perkonomics?
Loyalty programs are fairly standard these days and the rewards that can be gained are usually well documented and expected. There are no special surprises with these programs. By the time a customer has gained a special discount or free product, they feel that they have well and truly earned it. Generally, to qualify for VIP status you had to be extremely wealthy and be prepared to spend a massive amount of money with the company.
Perkonomics is a perk or privilege designed to give the customer a ‘warm and fuzzy’ feeling for the brand involved by offering a service to make life easier or give a certain status to the customer. The customer may be a first time customer that spends over a certain amount in a transaction, or a repeat customer. This may be in the form of:
- A chauffeur driven car to attend a function
- The ability to go to the front of a queue
- Free shipping on products
- Free pedicure with a manicure
- Express checkout or check in service
- Free tickets to entertainment
There are countless options and it will depend on what type of business you have as to what perks can be offered. Hotels, banks and airlines are the pioneers of perkonomics, but you don’t need to be a large organization to take advantage of this trend. EditsMadeEasy is a professional editing and proofreading service who offer free plagiarism checks on all dissertation and thesis editing projects.
There is an opportunity to think up novel and exciting new ways of providing perks and privileges to customers that will improve the consumer experience. Bear in mind that any perkonomics offered must remain in place long-term. It would be harmful to the brand to grant special privileges and perks to customers, and then take them away.