Customer Loyalty Enhancement Programs
Customer loyalty from high value customers is a key factor in driving corporate profitability. Research shows that for most businesses, 20% of customers generate 80% of profits. Identifying and winning the loyalty of these high-value customers can turbo-charge a company's profits.
Studies show that it costs six times more to acquire a new customer than it does to retain an existing one, and the profits generated by loyal customers will increase incrementally over time, as the cost of serving them decreases. Customer loyalty can be significantly enhanced by customer loyalty programs, critical to which is the exchange of value between company and consumer.
Differentiated offers targeting your most valuable customers will yield the best results - targeting the average customer will result in average profits! Winning the loyalty of high value customers will result in margin-enhancing behaviors including repeat purchasing, a decline in price sensitivity, the propensity to cross-buy, increased tenure and increased share of wallet. A loyal customer will also become a valuable advocate for your company, recommending your goods and services to other potential-value customers
