U S Many cross-industry studies show that it costs six times more to obtain a new customer that it does retain an existing customer. Loyal customers are repeat customers. As a rule, they are easier to deal with, do not haggle over price, offer you referrals as well as positive word of mouth advertising.
Customers are probably a company s most valuable assets.
They should be competed for, nurtured, developed, and reaped accordingly. Customer loyalty programs offer you continuous customer contact, unique and special offers within each customer contact, periodic reports that show all contact made. Frequent Shopper or Customer Loyalty Programs have been around for a long time. When you look at other service industries like casinos or the travel industry, no one can deny how these programs can increase sales and profitability. The casinos has been tracking their high rollers and providing comps such as free rooms, shows, meals, etc. because they have shown that the more they cater to the unique desires of their high rollers, the more they will spend at the tables.