Loyalty Flashcards
What are the 4 benefits of loyalty?
- CLTV
- Customer Identification
- Sales enablement
- Build a loyal customer base
What is the equivalent of 2% increase in loyalty regarding cost reduction?
Same as decreasing costs by 10% since gaining a new customer is 5x more expensive than retaining existing customer.
How much more do loyalty customers spend on average than typical customer?
67% more
Loyal customer are clients __________?
most valuable assets since increasing cult is the goal of all businesses.
Who was first modern company to do loyalty?
Green Shield - you’d buy gas and they’d give you stamps you could redeem at various stores.
Loyalty is no longer simply purchases lead to points, but its _________
A very effective way to identify customers and do in depth pattern analysis of their purchases.
How do regulations around privacy relate to loyalty?
As regulations become stricter, it’s more expensive to acquire customers. As this cost goes up, customer retention becomes more valuable.
What are the 4 objectives of loyalty?
- Non-discount rewards to help margins
- Drive purchases
- Share of wallet - are there products we could sell to these customers that they buy elsewhere
- Customer Identification
What are Actions / Customer side interactions?
Specific activities customers can take as defined by clients. Purchases, engagement on website, review, etc…
What are the 5 types of actions?
Events - Points for their birthday
Promotions - promote products, sales, etc. for a limited time
Engagement - drive customer to next engagement
Purchase - drive customers to next purchase
Join - get a non-member to join
How do Tiers work?
- Define settings ($ spent (required), # of purchases (optional) to reach tier, expiration (optional))
- Benefits once they are in tier
- points per $ spent
- points per product category $ spent - Create more rewards such as exclusive access on fixed benefits tab
Can have up to 10 tiers
What can you do on the fixed benefits tab?
You can set up benefits such as
- points
- birthday points or vouchers
- exclusive access to content on website
What are the 3 types of loyalty vouchers and give an example of each
- Vouchers for rewards: given as reward for an action (discount or free shipping)
- Vouchers for points: buy vouchers with points
- Vouchers for free: for all gold members, a free shipping voucher for the next 7 days
What is the loyalty wallet?
- It is the pre-built loyalty portal available on desktop and mobile.
- Easy to set up (little IT involvement)
- Can push and pull data from backend servers
- Can be customized for individual brand
What is the loyalty api
- Allows more in depth utilization of loyalty on any platform, application, POS machine
- Does require advanced technical capabilities
- Offers full customization of the wallet and even the ability to unify ucp and loyalty profile