If you’ve read anything on the costs of customer acquisition vs customer retention over the last 20 years, you’ll have heard that customer retention makes good business sense. And while the traditional loyalty card is dying out, loyalty itself is more alive than ever – but marketers need to take a different approach, according to myCircle.
Experts claim that it costs anywhere between 3 and 30 times more to get a new customer through your door than it does to persuade an existing one to return – even if that door is virtual, in the form of a website or mobile app. With figures like that, just imagine the increase in profit margin a business could make on something as simple as a cup of coffee… if it’s customers loyally returned on a daily basis. 220.127.116.11 This article is copyright 2015 TheWiseMarketer.com.
The traditional answer to this has always been the loyalty card, but the truth is, whilst loyalty schemes are more popular than ever, the loyalty card that you are so readily handing out… the one that your customer has just stuffed inside his or her wallet or put on a key fob, is dead weight. In an age where the world is moving toward an integrated online/offline experience, the loyalty card is inflexible, inconvenient and simply no longer fit for purpose. Cards get lost or forgotten, rewards go uncollected and the loyalty that you’re expecting your card to deliver, will never arrive….
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