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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
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