What is Loyalty?
Customer Retention
It is a well-known fact that keeping customers is less costly than acquiring new ones. LCUK work with companies to help identify the most appropriate response for retaining customers in ways consistent with their profitability.
LCUK have a great deal of experience in working with loyalty programs that have been active for a number of years and are now experiencing a static growth or appear to have peaked in popularity. Key to understanding a programs positioning in consumers minds is the gathering of regular customer feedback and tracking that should be an integral part of the management mechanics vital to informing programme strategy.
Many loyalty initiatives and programmes fail to achieve the desired results simply because the basic design of the scheme is flawed in some way. LCUK have a simple methodology combined with years of knowledge and experience with which to help its clients undertake a loyalty audit. The audit will identify the areas of weakness that need to be addressed in order to improve performance and ensure that the scheme delivers an appropriate reward/recognition strategy that will more likely lead to the changes in customer behaviour sought after.
Often with programmes that fail to appeal to the intended core audience within the customer base, can suffer from minor issues that once corrected deliver a significant improvement in programme performance. On more than one occasion we have found that the proposition benefits were not being clearly communicated and reinforced through simple communication opportunities.
Keeping consumers engaged through programme innovation is also critical to the longevity of a loyalty scheme. Through our consulting engagements, we advise clients on how to build the loyalty lifecycle such that a natural consequence of its operation will encourage the consideration, development and implementation of fresh content with which to ensure the customer is continually engaged whilst also providing new opportunities to expand the target audience.
Keeping existing customers is far easier than attracting new one’s, however becoming complacent about their custom is the hallmark of a failure to understand that successful organisations have specific strategies for customer retention, such as recognition and loyalty initiatives.
