What a good loyalty program like?

By: Trademagazin editor Date: 2020. 11. 13. 11:24

A well-run business can be built on loyal, returning customers. While acquiring a new customer costs 6-7 times more than retaining an old one, existing customers spend even 67 percent more than new ones. But digitization makes it thoroughly difficult to retain customers, as it’s easy to find a better deal on the World Wide Web. What can be done to retain our customers? Deloitte Digital experts have gathered some tips to keep customers loyal.

Most buyers usually consciously decide where to spend their money based on something unique. Recognizing this phenomenon, countless businesses have launched customer loyalty programs with various solutions (loyalty points, discounts, gifts, etc.) to reward their customers for new purchases. But there seem to be a time for traditional loyalty programs. According to a survey by eMarketer, 77 percent of reward-based loyalty programs fail in their first year and 89 percent of such initiatives have a negative response from customers on social media. People don’t even use the reward they earn, in most cases they redeem barely half of the discounts they receive.