These retailers know the long-term value of their customers, and they want it all to themselves. With the proliferation of shopping choices, consumers' spending patterns are changing across store types. Understanding not just who your consumers are, but what stores they shop in, how often and why is becoming valuable fodder in the information game. Driving consumer loyalty takes more than a standardized reward program. However, the focus on rewarding consumer usage has created new issues.
Many businesses are at parity in providing reward programs to consumers.
Clearly, driving consumer loyalty takes more than a standardized reward program. Four Key Truths Loyalty marketing is about extending the lifetime value of the customer. Retaining current customers is much less expensive than attracting new ones. Studies indicate that, on average, the cost of acquiring a new customer is five to 10 times greater than the cost of retaining a current customer. Retailers and manufacturers need to better understand the importance of their customers, to develop activities designed to improve the performance of these customers, and finally, to provide opportunities to communicate with these customers with the right messages and promotional offers.