Customer Retention 

The probability of selling to an existing customer is 60-70%, compared to only 5-20% for new prospects.

Attracting a new customer costs x5 as much as keeping an existing one.

Increasing customer retention by 5% can lead to an increase in profits of 25-95%.

What can a points-banking customer loyalty scheme achieve?
 

Retain Existing Customers

The effect of the customer retention rate on actual bottom-line customer numbers cannot be over-estimated. In five years, a firm with a 70% customer retention rate will have lost two to three times as many customers as a firm with a 90% retention rate.

Not only does a loyalty scheme provide a practical, hard reason for continuing to buy (the accumulation of points toward a reward, or higher levels of service) but it also provides information about the customers that allows their needs to be met more efficiently and effectively.

This in turn makes them more likely to remain customers. In addition, loyalty programme operators often report that, once a customer starts redeeming rewards, enthusiasm and engagement both increase.

Acquire New Customers

A loyalty scheme should attract new customers to the business; how effectively will depend on how exciting and how valuable the rewards seem to be to the target audience. Acquiring customers is no doubt essential to any business, but it can be expensive if compared to nurturing existing good customers. It should not be the central focus of a loyalty scheme; there are cheaper and more effective ways of acquiring customers. However, it is generally far more profitable to retain and up-sell existing customers than to attract new ones.

Win-Back Defected & Churned Customers

Increase Customer Lifetime Value

Know your Customer (KYC) is increasingly being recognised as one of the most important measures of the worth of a customer. It takes into account not only the customer’s value now but the expected value over their projected lifetime as a customer. It is one of the best ways a marketer can demonstrate that a programme is working.

Promote customers based on spend or targets

By grading rewards (for example, offering extra points for exceeding a specified spend threshold in a time period), customers can be moved up from one spend level to the next.

Customer Champions

Champions are one of the highest forms of loyalty that a customer can show. Champions are so pleased that they tell their friends and associates.

How does it work?

We create your own company branded Customer Loyalty reward website which is accessible by phone, tablet or desktop computer. Designed to be engaging, fun and intuitive so that your loyal customers are excited to keep buying your products and services to earn even greater rewards.

A username and password are issued for security and the user is welcomed to their account with custom messaging, they can browse to see how many points they have earned and where they can choose from a range of over 25,000 desireable rewards.

We deliver the reward through our distribution facility to their home address or work address and can include your own printed materials and communications, making the whole experience personal and memorable.