Customer Loyalty is the key to sustainable, long terms relationships with your customers.
The need to “connect” with the customer is more important than ever. Companies across every industry are revising their approach to marketing. Customer loyalty programs and tracking buying patterns are key to growth.
Traditionally, customer loyalty programs benefit consumers by rewarding them for their continued support. However, with continued desensitisation to mass advertising initiatives, the need for tailored loyalty programs is on the rise.
Effective loyalty programs now look to track spending patterns and ensure that members receive benefits relevant to their buyer behaviour.
The impact on organisations that are strong advocates of targeted loyalty programs can be seen with Tesco in the U.K. and OPSM. Tesco’s loyalty model of coupons and discounts was tailored to specific buying profiles and provided the impetus to streak ahead of its competition to gain 27% of the UK grocery market. OPSM tracked customer spend patterns and used integrated marketing campaigns to target those who were in the market for new contact lenses. As a result, there was a 67% increase in new fittings for contact lenses in 2004 / 2005. These two examples demonstrate that the days when a loyalty program simply meant “buy five coffees and get one free” are fast evaporating.
The development of a customer loyalty program is a merging of strategy, finance, marketing and technology. The groups that are generating the desired results are focused on both the initial and ongoing development and measurement of the customer loyalty program, creating a desired value for the customer.