What are the simple truths you can offer senior level marketers regarding their loyalty marketing programs?
Break-Through the Barrier That Prevents Customer Loyalty Profitability By Connie Hill To grow revenues in today’s economy, many marketers want to intensify their focus on the current customer base. Why? Loyal customers, customer retention and churn prevention has a significant impact on revenues and profitability. According to the recent CMO Council report “Addressing the Challenge of Customer Churn and Marketing Burn,” acquiring new customers can cost five times more than retaining current customers. And a two percent increase in customer retention can affect profits equal to a 10 percent cost reduction. Further, studies show that loyal customers are 15 times more likely to increase spend than the average customer. To truly optimize the current customer opportunity, marketers must gather and integrate customer data located throughout their organization. Unfortunately, the ability to aggregate and effectively mine customer data is a major challenge for many marketers. According to Forr
