- 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
Customer win-back expert Michael Lowenstein says that the success rate in approaching ‘lost’ customers can be three to four times as high as it is when prospecting for new customers. For example, the rate for converting prospects might typically be 5%, while that for reactivating inactive customers might be as high as 15-20%.
Increase Customer Lifetime Value
Customer Lifetime Value (CLV) 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 arguably the best way a marketer can demonstrate unequivocally that a programme is working: the CLV of targeted customers must increase.
Move Customers Up-Segment
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.
Best Customer Marketing (BCM)
Simply put, BCM involves spending more time, effort, and money on your best customers in order to maximise the return on marketing investment.
Create Brand Advocates
Advocacy is one of the highest forms of loyalty that a customer can show. Advocates are so satisfied and pleased with your offering that they tell their friends and associates.
Branded Customer Loyalty Website
We create for each client their own company branded and themed Customer Loyalty reward website which is easily 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 an enticing array of over 3,500 rewards and Virgin Experience Days.
We deliver the reward through our own distribution facility to their home address and can include your own printed materials and communications, making the whole experience personal, unique and memorable.
View Live Reward Collection
How it Works
We offer a no-obligation consultation by telephone, a web demonstration or an onsite meeting taking the time to really understand the desired outcome of the Customer Loyalty & Retention scheme.
The planning stage is crucial to determine the required return on investment and communications strategy, following which a transparent quotation with no hidden costs will be presented.
We can create a programme to suit any budget and our experience of managing schemes for a variety of diverse clients such as Raleigh Bicycle Company, GreentTek, Yewdale, and others means we have a built up wealth of knowledge and expertise.
We create all the collateral needed effectively introduce the scheme to your sales team.
We help generate scheme registrations via both on and offline communications tools such as video messages, e-shots, taster brochures, letters, leaflets and posters:
We have a variety of features which can be included as part your Customer Loyalty Scheme’s reward website.
These have been designed using our comprehensive knowledge and experience of what helps to engage and retain customers:
- ENGAGEMENT MODULES
Our Engagement Modules are tools developed to create a conversation and feedback with members of the programme and range from a simple quiz or questionnaire to check the current knowledge-base to more comprehensive video inserts of existing training materials. We collate and feedback the data which can be used to identify future customer needs and influence channel communications strategies.
- REWARD WISH LISTS
Participants can create their own personal reward wish list and can see how many more points they need to earn to be able to redeem their chosen reward encouraging their ongoing commitment and participation in the loyalty programme.
A friendly dedicated account manager is responsible for each scheme, participants can contact them directly via the Customer Loyalty Scheme’s reward website or can email or phone them directly. They are on hand to answer any queries and to provide a first class user-experience.
Clients also have direct access to the reward platform administration so they can upload images, messages and other updates to drive engagement and topicality. There is also a suite of Management Information tools available to easily help review the return on investment from the scheme.Contact us to launch a Customer Loyalty Scheme
“An initial 12 month campaign to engage and incentivise Independent Cycle retailers to sell Raleigh cycle accessories by awarding reward-points for each sale attracted over 1,100 active participants. The Loyalty Scheme was extended by a further 12 months due to its success.”