It’s seven times more expensive to acquire a new customer than to encourage an incremental visit from an existing customer.
Building customer loyalty is — and has to be — the primary focus of every business. Loyal customers spend more per purchase, visit more frequently, and are the number one source of new referrals. In fact, loyalty represents a business’s single most lasting and protectable asset to monetize for years to come.
It’s thus shocking that we continue to see loyalty programs completely fall on their face. The average consumer holds close to 30 loyalty program memberships but is actively engaged in only 10. After the first year, 58% of loyalty memberships are inactive. So why do the preponderance of loyalty programs continue to fail at engaging consumers? What have the select few companies who’ve succeeded in loyalty — Starbucks, Walgreens, Starwood Hotels, and Delta Airlines to name a few — done differently to actually see success?
Get the guide to learn the top 5 things all companies should know about building a customer loyalty program
- How to get customers enrolled
- Why the reward accrual process is so important
- The value of clear communication between businesses and customers
- Tailoring your program for your unique business
- What Tiffany’s jewelry and tuxedo-clad firefighters have to do with customer loyalty…
: Best in class loyalty programs are simple, effortless, transparent, sustainable, and motivating. Hit all five of these goals and you’ll see more customers crossing the finish line and blow by your same-store sales targets for next year.