Monday, August 2, 2010

Tip#17: Loyalty is a Continuity Program

"Totally satisfied" customers are the least likely to fall away.  Those who are merely "satisfied" may fall away without warning.  They key is to keep the communication channels open with constant and consistent marketing, which allows you to learn what it takes to keep your customers totally satisfied and to keep your customers aware of what you are doing to keep them totally satisfied.

It costs 8 times more to acquire a new customer than to keep an existing customer.  Treat your best customers well.  Effective loyalty programs are those that reward your best customers on tenure--on previous purchases, usage behavior, and length of relationship.  This can help prevent competitors from conquesting your best customers and will likely lead to improved ROI.

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