Loyalty Marketing 101:
Today's smart companies are realizing that
losing a single customer means much more than losing a single sale.
It means losing the entire stream of purchases that a customer can
make over a lifetime of patronage. This potential stream of purchases
is referred to as Customer Lifetime Value (CLV) and is the basis of
any Relationship Marketing program.
Customer Lifetime Value is the reason today's forward-thinking companies
not only want to create customers, they want to own them for life!
For example, Lexus Automobiles estimates a single satisfied customer
to be worth $600,000 in lifetime sales. Yet in today's world there
is an abundance of choice for nearly every consumer good on the market,
and luxury automobiles are no exception. So when an auto lease runs
out, what puts a customer back in the seat of a Lexus? Loyalty.
Lexus builds emotional bonds with their customers. Like personal relationships
between friends who are willing to do favors for each other, loyalty
marketers offer repeat customers special attention, special services,
discounts, and communications well beyond the initial sale, without
expecting an immediate payback. However, they are hoping that over
time they will reap the advantages of sustained and increasing transactions
with a core group of loyal,repeat customers. |
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