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Loyalty and Retention Closely Intertwined

Customer loyalty and retention go hand in hand. When you are loyal to your customers they will be loyal right back. Industry research shows that retailers are better suited to invest in retaining their customer base than spending to generate new customers. Existing customers drive a higher share of revenue, have higher conversion rates, and continue to stay loyal to your brand during tough economic times.

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Come on in and stay awhile, Building Customer Loyalty

The value of building customer loyalty shows in your bottom line. You know that attracting new customers is important but still not the crucial part of your loyalty program. It’s just the first step, next comes building customer relationships. It can cost your company 5-7 times more to find new customers than to retain one, so nurturing and engaging consumers once they have chosen your brand is key to big savings and a successful ROI in the long run.
Customer Insight Group, Inc. recently released an infographic that highlighted common customer loyalty concepts like communication problems when it comes to rewarding customers.
Check out the full infographic here to learn about the do's and don't's of a successful customer loyalty program.

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What Corporations Can Learn About Customer Loyalty

Loyal customer appreciation gifts are a staple of retailer and major brand customer retention and new customer acquisition strategies, but, in tough times, are corporations learning from what the kings of consumerism do? A recent Demandware webinar called “Amazon is Eating Everyone’s Lunch: How to Not Be the Main Course!”, uncovered how Amazon’s customer experience and loyalty program have stolen critical mass shopper market-share, not only by beating all other retailers on price, but also by learning from their customers via surveys and creating a loyalty program that other retailers dream of. What can companies and corporations learn from Amazon? Think about your customer loyalty program. Don’t have one? Create one before your competitors eat your lunch. Think about offering “thank you’s” for repeated purchase of product or services. Declare August or September “Loyalty Month” and offer a
gift card in return for completing a customer satisfaction and learnings survey. Give
gift cards to repeat customers who refer new customers to you.
Are you ensuring that your customers are not only happy, but incented to keep coming back?
Read on in the GCP eBook . 2012
Incentives in the Workplace to discover how companies of all shapes, sizes, and industries use incentives to drive their desired results.

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