creating customer loyalty programs that stick
TRANSCRIPT
Creating Customer Loyalty Programs that Stick
http://www.egiftafrica.com/
http://www.egiftafrica.com/
What if we told you that an academic study has broken the secrets to successful customer loyalty programs WIDE open, revealing a stupidly simple technique for improving customer retention, loyalty and churn rates over the long haul?
You’d be interested in hearing about it, right?
http://www.egiftafrica.com/
In truth, two different types of cards were handed out to customers.
The first group received a loyalty card that had eight slots to be stamped before a free car wash was awarded.
The second group received a loyalty card that had 10 slots to be stamped, but this time two of the stamps were already filled out, meaning customers only needed eight more purchases to get their free car wash.
http://www.egiftafrica.com/
Why Did This Happen?
At first glance, the results don’t seem very logical. Since the first group had eight slots to complete and the second group had 10 slots to complete (but with a two-slot head start), both groups needed eight purchases before they could get a free car wash.
http://www.egiftafrica.com/
How to Improve Loyalty to Your Business
This research is useful information to know, but how can we go about putting it into practice?
Largely, the creation of a successful loyalty program boils down to three important steps:
- Setting a goal for customers to achieve- Deciding what the action will be to progress- Pitching the artificial advancement as a bonus
http://www.egiftafrica.com/
