CUSTOMER LOYALTY

Customer Retention: How to Implement it and What Benefits Derived from it?

Having your own loyalty program is a winning strategy for many successful brands. We’re talking about Loyalty Marketing, that is, all those actions and tools aimed at creating a relationship of loyalty with your customers. The ultimate goal is to build quality and long-lasting relationships, gaining the trust of consumers.

Strengths of Customer Loyalty:

Here are the main advantages of activating a loyalty program:

Obtaining Quantitative and Qualitative Data
Having an In-depth Knowledge of Our Customer Base
Possibility to Activate Multichannel Communication Campaigns
Significantly Increasing the Number of Returning Customers
Strengthening the Bond Between Brand and Customer
Greater Opportunities for Upselling

To design a personalized Fidelity Development strategy, the first step is to define the concept and the context in which you operate. Before setting up a Loyalty Marketing strategy, it is also essential to carefully analyze all the data available to us. The second step will be to define the program on the practical side, establishing the various Rewarding mechanisms.

Parameters to Measure Customer Loyalty

To measure customer loyalty, you must consider three metrics:

Returning Customer Rate. That is, the percentage of customers who make repeated purchases over time.
Customer Lifetime Value (CLV). This metric indicates the total profit that each customer brings to the company over a certain period.
Net Promoter Score (NPS). This parameter indicates how willing acquired customers are to recommend the brand to their circle of contacts, thereby becoming "Brand Ambassadors".

Developing strong brand loyalty is crucial for companies, as it tends to reduce price sensitivity. Thus, customers, if attached to the brand, are more likely to pay a potential premium price for the desired products.