Every marketer knows that it costs considerably more to acquire a new customer than it does to sell to an existing one. So loyalty programs, in general, are a good idea. But creating one that is both meaningful to the customer and contributes to revenue growth is not easy.
It?s surprising that, despite their popularity, loyalty programs often fail to boost companies? market share. There are 2 key reasons for success or failure:
- The program must offer INDIVIDUALIZED REWARDS, offering different rewards to different customers based on what they value most. Many programs use monetary rewards to encourage repeat purchases but that?s not always in tune with what a customer cares about.
- The program? must be EASY?simple sign up, easy to understand, driven by technology that knows what a customer buys most frequently, deliver the reward instantly, reward customers based on their unique buying patterns.
I scored a free iTunes song download and a new game to play on my iPhone at Starbucks recently. But at Panera Bread?s bakery-cafe, I got an offer for a free espresso drink and dessert. And at beauty product retailer Ulta, I get money off almost every time I buy something, based on my last purchase amount. And I?m loyal to all of them because each has a unique reward for me and all I have to do is give them my loyalty card to cash in!
Your business may not cater to consumers like these but have you thought about a way to keep your customers coming back for more?
The Marketing Consultants at Luminovas are happy to brainstorm some new ideas with you, so get in touch!
Source: http://www.luminovas.com/2012/10/598/
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