Tuesday, 26 June 2012

Loyalty equals profit

What are companies doing to maintain their members to stay loyal to their business?  Are customer loyalty programs important? With these types of programs customers are more willing to shop and spend more knowing they will get something back.  It's essential for businesses to provide this service in order to produce profit for the company.

Here's a video on some important facts businesses should consider in loyalty programs and retaining them.



After watching this video the facts shows that consumers do value their rewards card.  Businesses are likely to gain more in profits if they focus on providing quality customer loyalty programs to regular customers rather than obtaining new ones.  

What disadvantages do you think would impact businesses today from a loyalty program?  Maybe the funding in marketing a new program? What are your views?

3 comments:

  1. Hi Tara,
    You have a very good blog. Well done.
    It is informative and well structured.
    I especially like the poll that you set up.
    I found your content interesting because of the strong Customer Relationship Management(CRM) components.
    I have a question though, what do you think of companies that "fire" or get rid of their high cost customers?
    Your feedback will be appreciated.
    Thank you and well done again.

    ReplyDelete
    Replies
    1. Thank You for coming to visit my blog. I think that when a company fires a customer its in good reason for the business. In order to make profit for the company they have to focus on the customers that will bring revenue to the organization. That means loyal customers that will make more purchase transactions then the ones who don't so often. With a higher profit the business is maintained and will continue long-term.

      Delete
  2. This comment has been removed by the author.

    ReplyDelete