- Posted by careers 08 Jan
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Starting today, we will be sending you tips and guidelines we have learnt over the years in building and maintaining a successful Customer Loyalty Program, as you may know, Loyalty Solutions Limited is Nigeria’s premier Loyalty Company in Nigeria.
Please go though and feel free to reach me directly should you have any questions.
A good loyalty programme has the power to transform a business into a customer-centric profit machine. Here, we will offer over the next few weeks, a thirty-point list of the major factors that directly impact the success and profitability of a customer loyalty programme…
In this article, we’ve drawn guidance and data from The Loyalty Guide report as well as our in house data, to offer practical insights into using customer loyalty programmes and data to increase not only customer retention but also customer lifetime value and profitability by means of a long-lasting customer relationship. We have purposely kept our focus on practical matters rather than merely expounding theory.
The case for loyalty initiatives:
It is vital for the marketing department to contribute to the profitably of the business, and it has to be able to measure and demonstrate its contribution to profits, despite a the common misconception that marketing is a cost centre, not a profit centre. But at the same time, the marketplace is changing: customers are becoming more demanding, and competition is becoming more intense. It’s becoming increasingly difficult to differentiate one business from another. Technology is providing some answers, but each answer brings more choices and more decisions to be made. However, it is sensible to:
1. Focus on the best customers that you already have;
2. Optimise the profit that can be made from them;
3. Increase the period in which they remain customers;
4. Be able to produce measurable results of success.
Benefits of a loyalty programme:
A well designed and run loyalty programme can do all of these things. But it is just one aspect of a comprehensive marketing strategy. Having said that, if a loyalty programme is used to full effect, it should be the central pillar of that strategy. The theory of customer loyalty is quite simple: a business that retains its customers for longer usually makes more money from them at lower cost than one that is constantly paying to acquire new customers. The basic principles are simple, too: know your customers, and only reward them for behaving in the way that you want.
Through a loyalty programme, customer and transactional data can be collected, and the intelligent use of that data will provide a much clearer picture of the customer base – and this will lead to more profits from the beginning. A common question is “What proportion of turnover should a loyalty programme cost, and how long should it take before it begins to pay back?” Well, although there is no definite answer, a good loyalty programme will pay back from the very beginning. (Tesco’s ClubCard – arguably one of the biggest and best-run loyalty programmes in the world today – actually made money from Day One.)
Starting next week, I will share with you in phases, the top 30 factors that make loyalty pay…
Should you however have any questions, comments or suggestions please feel free to drop them in the comment section below