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It is said that it is 5 to 25 times less that they participate in. Customer loyalty
expensive to keep a customer than to programs that incentivize reviews and
acquire a new one. Once customers form ratings on websites and social media
an emotional connect with a particular generally result in trustworthy and
brand, they are expected to stay with it for authentic user-generated content from
an average of 5.1 years. These retention customers. These also help in changing
rates can be enhanced by running a brand perceptions amongst other
referral programme -- customers who are customers.
referred directly by loyalty members have
a 37% higher retention rate. What’s more, Increased brand awareness
increasing retention by just 5% through
customer loyalty programmes can boost As loyalty customers engage more with
revenue by 25% to 95%. the brand, they are more likely to be
aware of the most recent updates, product
Drives sales launches and other information
concerning the brand and the business.
Loyalty programmes can serve as a shot in
the arm to drive sales. Depending upon Pre-orders for new product launches
where the incentive is provided,
businesses can achieve the objective of Loyalty customers are often given the first
upselling – incentivising customers to buy opportunity for pre-ordering a new or
more of the same product, or cross-selling improved product ahead of its launch.
by encouraging customers to patronize the Sometimes, a small incentive to spread the
other product lines of the business, or word within their circle also helps in
those of its alliance partners. awareness-building.
Increased engagement Enhancing lifetime value
Loyalty programmes offer several Customer loyalty programmes are proven
experiences to its customers that keep to increase customer lifetime value by up
them engaged and involved with the brand to 30% or more. For customers who
regularly. The key lies in sustaining the actually share an emotional connect with
programme on an ongoing basis, and the brand, this lifetime value can soar as
establishing the right metrics and KPIs to high as 306%. The tier concept of
measure the engagement -- which is more recognition by which members are able to
than merely tracking the count of likes earn points, every time they do an activity
and followers. with a partner of the loyalty programme
they have enrolled for, enabling them to
Increased net promotor score (NPS) upgrade to the higher tiers of the
and brand advocacy programme and experience superior
benefits. This creates longevity and a
A well-sustained loyalty programme sense of accomplishment for a customer,
generally improves the NPS, with ultimately leading to loyalty.
customers tending to recommend those
products to others. When compared to Understand customer behaviour
non-advocates, loyalty members are 2-3
times more effective in persuading others For marketers, the purchasing behaviour
to patronize their brand. In the KPMG of their customers constitutes the
survey, two-thirds of the customers important data set they can lay their hands
revealed that they would give rave on. Using these amazing insights, and
reviews to at least one loyalty programme through trial and error, marketers get a
