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Loyalty programs and increased profits

 
Posts: 7 Joined: 2008-05-24
 

I need your help, thanks for stopping by and dropping a note if you have the answers.
Loyalty programs:
- Do they increase CLTV (customer Life Time value)
In value: does the customer value increases?
If yes, by how much?
1-5%, 5-10, 10-20, 20-30,...
In time: do they stay longer?
If yes, by how much?
1-5%, 5-10, 10-20, 20-30,...
Do they increase customer base by attracting customers from the competition?
Again:
1-5%, 5-10...

Anything you wish to add is welcome and thank you for your very valuable input.


Graham (not verified)  
 
<no subject>

Colloquy released statistics revealing the average US resident is a member of 14 loyalty programs, 6 active (used in the last year) and 8 not active... Whether the program gives you a good ROI entirely depends on whether you make a program that suits your customer base. A lot of businesses are moving towards increasing their relationships with customers to increase the success of their loyalty programs. There is no definitive answer to what you're asking and the only way you'll find out what's right for you is by experimentation.

-Me


 
Posts: 7 Joined: May 24, 2008
 
Loyalty

Thank you Graham. Colloquy is a good source for that. If you hear about anything else, even very approx kindly let me know.I'll appreciate it


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