Any business over time realizes that in order to attract new customers an keep the current loyals, they have to increase their competitiveness.
Attracting new, but even more important - keeping existing loyal customers is the main target of any marketing division. This is where a loyalty system becomes the tool of first choice. A loyalty program complete with support hardware makes up a loyalty system.
Main goals of a loyalty system:
■ Keeping of existing customers
■ Incresing the demand for merchandise/services amongst existing loyal and new customers.
■ Attracting new customers with the help of existing loyals.
A customers loyalty - choice of product/merchandise/service exclusively from a distinct manufacturer/wholesaler or re-saler. A choice that demands to spend, sometimes sacrificing a little. A truly loyal customer will never go to your competition only to receive a minor discount. A true loyal will sincerely suggest your product/service to his friends and family.
WHich CUSTOMERS ARE WORTH THE EFFORT AND WHAT ARE THE ADVATAGES OF KEEPING THEM
■ 20% clients make up 80% of your income («Pareto principle»). These 20% of customeras are the ones, you want to keep, no matter what.
■ A constant customer will increase his amount of purchase over time.
■ Loyalty system implementation leads to stabilizing the customer base and easier future profit analysis.
While working towards existing customers, your expenses for attracting new will be significantly lower than, if you were working only towards new customers (advertising a.s.o.). Also, a loyal customer tends to spend more and is less likely to pick a fight over small misunderstandings.
HOW TO BUILD A TRUST
BASE FOR LOYALTY
■ Special prices, to which only loyal customers are entitled - fixed and flexible.
■ A loyalty reward system - bonuses, accumulating discounts.
■ Special attention, exclusive services, extra thorough work with customer.(*)
■ Prizes, rewards, lotteries, gifts, clubs and unions.(*)
WHO DOES NOT NEED
A LOYALTY PROGRAM
■ Companies without competition, who are in an exclusive niche, ar provide a unique product/service.
■ Companies with low competition ability, who have more pressing matters, than a loyalty system.
■ Companies - "discounters", whose only real competition instrument is the price.
"ID CS", Ltd., Artilerijas Str. 22-14, Riga, LV-1001, Latvia
e-mail: info@idcs.lv
T. 67277477, f.67277266