Marketing Consultant Loyalty
We help clients
Develop loyalty strategies
Connect loyalty strategies with Customer Experience
Develop customer engagement strategies
Improve the effectiveness of any existing loyalty programmes or initiatives
Exploit new technologies to increase customer engagement including the development of smart phone loyalty apps
What is Customer Loyalty
Definition loy·al (loi l) adj.
1. Steadfast in allegiance to one's homeland, government, or sovereign.
2. Faithful to a person, ideal, custom, cause, or duty.
Customer Loyalty is earned and not bought and Forrester has shown a strong correlation between good customer experience and loyalty
Why is Customer Loyalty Important
Companies with higher proportions of loyal customers out perform those with fewer.
Acquiring a new customer can cost between 5 and 10 x the cost of keeping an existing customer (McKInsey 2001)
The share price of Companies with high customer experience scores outperformed the S&P 500 by more than 3 times over a 6 year period (Forrester 2013)
The life time value of Promoters are on average 2.6 times Detractors peaking at 4.6 times in the online retail sector (Bain & Company 2013)
Loyalty Leaders grow more than 2x faster and have 15% lower costs compared to Average Companies (Bain & Company)
One of the key outputs of many loyalty programmes is rich customer data. We help clients get the most out of this data and help them connect it to existing data sources and create a 360 degree customer view.
The most successful loyalty programmes have learned how to extract value form this data , improve the product/service proposition, customer experience and sell more, and more profitably
Benefits of Loyal Customers
Measuring and Quantifying the Benefits of Loyal Customers
We help clients measure the profitability and ROI from growing the Loyal Customer base. We help build business cases to support the introduction of loyalty and CX initiatives
Loyal Customer behaviours we can measure
Recommend your brand to others (lower customer acquisition costs)
Longer tenure (LTV)
Purchase more frequently
Spend more per purchase (ATV)
Cost less to serve
Provide feedback /insight to improve the customer experience
Loyalty Programme ROI Profitability
We help clients understand the economics and profitability of loyalty programmes helping them improve the design and the ongoing management
Key elements include calculating
Fixed costs of programme operation
Variable costs associated with rewards and customer engagement
Incremental revenues and profit from customer engagement
Break even point in terms of active target members
Loyalty Customer Engagement
A typical UK consumer will be signed up to a dozen loyalty programmes but will be actively involved and engaged in just a handful of them.
Just 44% of members of loyalty programmes where active in terms of one or more engagements in the last 12 months (Colloquy 2013 Loyalty Census)
53% of members of loyalty programmes stopped participating in at least one programme in the last year and just 7% formally requested to leave the programme (Maritz Loyalty Report 2013)
Traditional Loyalty Programmes are just one way to engage with customers and are not always appropriate nor profitable
We help clients develop test programmes , define and measure success criteria , learn more about how to reward and engage with their customers before committing to expensive roll outs.