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For companies that depend on repeat business, Lifetime Customer Value (LCV)
is arguably a company’s most valuable metric. Many successful companies
in today's competitive marketplace have adopted “Loyalty Marketing”
as a key strategy for LCV improvement.
The premise seems simple: reward customers for their continued loyalty.
Develop stronger relationships with your best customers – they will
make more purchases, present fewer customer service problems, and their
LCV will increase. They will also refer others to you, becoming an invaluable
source of new business. In short, building customer loyalty is an excellent
way to drive higher profits. But undertaking a successful Loyalty Marketing
initiative can be a surprisingly complex enterprise.
The Potomac Falls Group can help you implement an effective Loyalty Marketing
program designed to improve the two main drivers of LCV: frequency and dollar
value of purchases, and relationship longevity. PFG’s unique Loyalty
Marketing approach addresses the six major components required for a successful
program:
- Reward relevancy – development of flexible, convenient, and
timely rewards that are relevant to your customers’ desires
- Behavior modification – motivating customers to engage in buying
and other desired behaviors consistent with your overall marketing and
sales strategy
- Reward allocation – development of “loyalty business rules,”
which can be tracked and stored, that match customers behaviors to the
right rewards
- Program promotion – design of a persuasive communications campaign
to promote the reward program to the targeted customer base
- Financial exposure limitation – creation of a program where
third party providers fund the operation and free you from liability
for unredeemed rewards
- Measurement – establishment of metrics and systems to assess
improvements in customer loyalty, behavior, retention, satisfaction,
etc. against established program objectives
PFG believes the right rewards program – with genuinely valuable and
motivating rewards, targeted promotion, and no liability for reward redemption
or unredeemed points – can differentiate your company from your competitors,
increase marketing response rates, improve renewal rates and LCV, and substantially
increase net revenues. Let PFG
assist you with the right program today. |
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