Benefits of a well managed Loyalty Program:
Why Promotional and Loyalty Programs are essential?
These unlock the potential of the key elements responsible for the success of businesses:
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Customers
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Employees
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Sales Partners
Why is Customer Retention Important?
Businesses without a customer retention plan will lose revenue and market share before they know it. What
many business failed to realize is that while customer relationships
are one of a company’s most valuable asset, these are often one of the
most undervalued and under emphasized assets.
Did you know that your best customer is your existing customer?
This is the case for several reasons:
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It is cost effective to retain an existing customer than gaining a new customer
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You have already gained the customer's trust
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The customer already knows and loves your product and company
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You
will more easily sell a new product line to an existing customer than a
new customer. Therefore, with existing customers, you have the
potential to expand product lines and gain marketshare.
Understanding the Importance of Customer Relationships:
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Know that profits are ultimately produced by establishing and nurturing successful relationships with customers
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Every customer
relationship is an asset and as such, has an economic value termed LMV
(Lifetime Market Value). This is determined by taking your average
customer transaction and multiplying it by the number of transactions
he or she will conduct with your company over a period of time.
For example,
if your average customers buy $500 worth of your product or
services per every transaction and the average customers
buys 2 times every quarter (or 8 times per year) for the last 3
years, then your LMV
$500 x 8 = $4,000 x 3 = $12,000.
What happens if you lose an existing customer after 1 year? You earn only $4,000 and give up the potential of earning $12,000.
Therefore,
we can conclude that by not nurturing the relationship of an existing
customer and rewarding him or her for being your customer, you can
significantly negatively impact your bottom line over time.
Statistics show the following why Customers leave:
-
Move or
Die
4%
-
Other Company
Friendship 5%
-
Competition
9%
-
Product
Dissatisfaction 15%
-
No Customer Contact Strategy 67%
Customer Retention Strategies
Every
business gains and loses customers. Customer satisfaction is critical
to gainng more customers and losing less of of the ones you
already have. Some helpful strategies are:
-
Educate your
employees, especially those directly meeting or speaking with
customers, exactly how much each customer is worth to your business
-
If you have
not done so already, start keeping track of customer behavior as this
information is vital in helping you to motivate such behavior
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Maintain high customer satisfaction levels and protect your customer relationships by delivering quality products and services
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Let your customer know how important he or she is
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Develop a strong Loyalty Program that offer your customer some benefit as well as a way to showing your appreciation
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Reward your sales force and alliances to ensure they are providing strong customer satisfaction
For further information and details on how you can launch and manage a successful Loyalty Program and take advantage of a phenomenal and proven product line, contact us today by filling our "More Info" form on the home page.
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