Loyalty Marketing

Abstract

"As a customer's relationship with a company lengthens, profits rise. And not just a little. Companies can boost profits by almost 100% by retaining just 5% of their customers." Reichheld & Sarrer
Loyalty Marketing programmes are known for some of their more obvious effects- such as increasing spend (and therefore customer lifetime value) and better retention but they can also achieve a number of other things that impact the company's business strategy, operational efficiency, human resources policy and more. For example: - Customer acquisition, up selling and cross selling, intelligent deselecting (getting rid of unprofitable customers), winning back defected customers, selection of new outlet locations, reducing advertising costs, stock planning and merchandising, getting relationships and enabling true "best customer marketing".