Companies offer loyalty programs as well as constantly
invest in them to improve and maintain their effectiveness for the following reasons.
- Keep customers – customers stay loyal to the loyalty program because they focus on the amount of points they have already gathered and continually interact with the company to gather more points even if they don’t really feel loyal
- Gain wallet share – when companies provide some extra bonuses in loyalty programs, they encourage the customers to come to them more often than going to their competitors.
- Prompt customers to make additional purchases – customers can be lured to buy more than they would have bought without the customer loyalty program, especially when customers are really close to obtaining a reward
- Identifying which customers to focus – Customer relationship management system (CRM) is tool for companies to collect customer data and track their behavior meaning the companies know what a consumers buy, what amount and how often. CRM allows companies to choose which customers to focus their marketing resources to maximize their profits.
No comments:
Post a Comment