Increasing customer retention by just 5 percent can increase profits by 25 percent to 95 percent. Companies willing to focus their energies on loyalty-related issues consistently sustain themselves as market leaders. In addition to embracing an ethical market approach, these organizations develop such strong employee and customer relationships that they become unassailable franchises. Now add to that picture large groups of competitors approaching these assets, preparing to lure them away with promises and snatch them up. Well-designed loyalty programs build an impenetrable wall around these valuable resources.
Loyalty is a basic trait of major, long-term achievers in any marketplace.
These market leaders embrace loyalty and build loyalty-driven enterprises. While the Internet enhances electronic communication, it deosn't replace other forms of interaction. The senses of sight and touch that used to be so important in relationships are negated, making it more difficult for businesses to develop a bond of loyalty with their customers. One thing to remember is loyalty is not just an incentive. It's a process of communication.