Customer Loyalty Program
Keeping the Customer Satisfied
Developing Effective Loyalty programs
Few marketers would argue against the advantage of having satisfied, loyal customers or that it’s much cheaper to keep an existing customer compared to selling a new one. Empirical evidence suggests that success in retaining customers often boils down to doing the basics right.
In addition, some businesses have characteristics better suited than other businesses for loyalty/frequency marketing programs, according to Jill Griffin, author of Customer Loyalty: How to Earn It, How to Keep It. Her book includes the following questions to help determine whether a frequency marketing program makes sense for your company:
- Does your product or service have a frequent and regular repeat purchase cycle?
- Do your customers perceive little differentiation between your product or service and your competitors’? If so, then a frequency marketing program may help.
- Will your customers perceive the rewards as valuable?
- Will you communicate with these customers on an ongoing basis in order to build a long-term relationship?
- Can you afford the program?
- Do you have a comprehensive relationship-building strategy and a means to measure it?
Taraci Motivation can help you navigate the tricky minefield of Customer Loyalty Programs. To learn more email us, or call 212-243-7733.
