Did you know it costs a business about 5-10X more to acquire a new customer than it does to sell to an existing one? Not only that, but on average, current customers spend 67% more than new customers. In light of statistics like these, businesses must think about what they are doing to keep their customers coming back to their business. And if you’re like 65% of marketers, your company has implemented a loyalty program. (more…)
Consumers' overall engagement in traditional loyalty programs has declined consistently over the past four years and retailers are looking to refocus their loyalty initiatives to compete more effectively. In the past, points programs, discounts, punch cards and rewards played starring roles in loyalty initiatives. But industry experts are finding that these tactics no longer impact consumers' overall loyalty to a brand or retailer.
"Loyalty has a definition to it that is dated," said Andy O'Dell, Co-Founder and Chief Strategy Officer at Clutch, in an interview with Retail TouchPoints. "A lot of people consider loyalty a one-dimensional experience: I spend money and I get points or I buy a certain number of things and I get something for that."
Tiers and thresholds also have been a staple in programs. If consumers reach a specific spending threshold, they reach a new program tier or level. Although these formats are supposed to toutRead More