Consumer Loyalty Program
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Consumer Loyalty Programs are an effort to identify, maintain, and increase the return from your best customers through, long term, interactive, value added relationships

Objectives

bulletAssess customers according to value
bulletRetain those who are most valuable
bulletIncrease their gross profit contribution

Means

bulletUse transactional data to identify customers
bulletCreate open and productive dialogues
bulletApply "added value" opportunities and mechanisms to influence choice.

 

Why Bother?

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To show leadership

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To catch up

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To be more effective

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To be more efficient

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Because customers expect it

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Understand customers – collect data

What Can You Expect?

bulletImproved customer retention
bulletLife-time value
bulletIncrease share-of-wallet
bulletFrom competitors
bulletVia cross-sell / up-sell
bulletProvide a framework for dialogue and feedback

Don’t Expect Loyalty Programs to…

bulletFix fundamental problems
bulletGenerate quick profits
bulletQuickly bring in new customers

Where Do Loyalty Programs Work Best?

bulletHighly competitive markets
bulletParity is perceived to be high
bulletHigh fixed, low variable cost businesses
bulletPerishable inventories
bulletPurchase Behaviours can be tracked
bulletFrequent purchase cycles
bulletManagement does not want to compete on price

Why Do Loyalty Programs Work?

bulletAll customers are not created equal
bulletShare of customer (share of mind) is a more profitable pursuit that share of market
bulletImprove earnings with existing resources
bulletManage customer relationships through corporate-wide initiatives
bulletCurrent relevant dialogue creates competitive advantage
bulletThey build customer loyalty not purchase loyalty
bulletIt becomes the differentiator when all other things are equal or closes the gap on small perceived differences.

An effective consumer loyalty program recognizes and rewards customers based on their purchase behaviour.

 

Consumer Loyalty Program    Customer Loyalty Program    Customer Loyalty Program Web    Discount Loyalty Program    Employee Loyalty Program    FAQ Loyalty Program    Guest Loyalty program    Loyalty Building Program    Loyalty Program Software    Loyalty Reward Program    

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Last modified: November 21, 2007