Did you know that you can boost your revenues by 95% if you increase customer loyalty by 5%?
In fact, it is seven times more costly to acquire a new customer than to retain an old one. Companies like Amazon and Nordstrom know loyalty pays back and have invested in creating outstanding rewards programs. These retailers have millions of subscribers and are market leaders in customer loyalty.
The importance of retail customer loyalty and retention is profound.
- 73% of ‘members’ will recommend brands with good loyalty programs
- 70% of consumers will spend more if they can be rewarded
The webinar explains how to shift the retail paradigm from transactional, where a purchase is considered the finish line, to membership based, where the first transaction is the starting line.
Creating an effective loyalty or membership program is no simple task. Aside from discounts, what can we offer to encourage loyalty? Aside from purchases, what activities and behaviors should we reward?
The transformation from the transactional economy to the membership economy is taking place along 4 key dimensions. Each area, alone, has recently been the source of disruptive innovation:
The structure of a loyalty program in the membership economy is just the beginning. The webinar also describes how to address the 4 characteristics of the most successful loyalty programs:
- They are aligned with the brand
- The program fulfills a customer need
- The program adds enjoyment to the customer experience
- Redemption is easy
And Manish Chowdhary, CEO of Pulse Commerce, provides additional examples of how companies can go the extra mile:
- Pick a creative name. For example, SoccerPro gives customers a ‘PROfile’
- Make points sound like treasure. For example, Pixi Beauty’s ‘Pixi Dust’
- Reward more than just purchases. For example, rewards for site visits and social shares.
- Offer more than just store discounts. For example, free gifts with purchase.
Our free, on-demand webinar will provide direction on how your retail business can apply these strategies to improve retention and raise the lifetime value of your customers. All while reducing customer acquisition cost by increasing referrals.