Automation of loyalty program process flows
Posted: Sat Dec 21, 2024 5:16 am
Many organizations focus most of their marketing efforts and budgets on acquiring new customers. In doing so, they fail to nurture their existing customers, leaving many to seek products and services elsewhere.
Studies consistently show that retaining customers communication email list and selling to existing customers can improve a company's bottom line. Experts say the chances of selling to an existing customer are 60-70%. But the chance of getting a new customer to buy products is only 5-20%. Additionally, it's important to know that:
Repeat customers spend on average 31% more than first-time customers.
A 5% increase in customer retention produces more than a 25% increase in profits .
Customers who feel an emotional connection to a brand have a 306% higher lifetime value (LTV) . They stay loyal to a brand for an average of 5.1 years versus 3.4 years, and are almost twice as likely to recommend brands.
A customer loyalty program is a very effective way to boost retention.
What is a customer loyalty program?
Wikipedia defines a loyalty program as "a marketing strategy designed to encourage customers to continue to make purchases or use the services of a business associated with the program." There are many types of customer loyalty programs. For example, earning points for each purchase and redeeming them later. Or, offering discounts for spending a certain amount of money.
Studies consistently show that retaining customers communication email list and selling to existing customers can improve a company's bottom line. Experts say the chances of selling to an existing customer are 60-70%. But the chance of getting a new customer to buy products is only 5-20%. Additionally, it's important to know that:
Repeat customers spend on average 31% more than first-time customers.
A 5% increase in customer retention produces more than a 25% increase in profits .
Customers who feel an emotional connection to a brand have a 306% higher lifetime value (LTV) . They stay loyal to a brand for an average of 5.1 years versus 3.4 years, and are almost twice as likely to recommend brands.
A customer loyalty program is a very effective way to boost retention.
What is a customer loyalty program?
Wikipedia defines a loyalty program as "a marketing strategy designed to encourage customers to continue to make purchases or use the services of a business associated with the program." There are many types of customer loyalty programs. For example, earning points for each purchase and redeeming them later. Or, offering discounts for spending a certain amount of money.