Customer Loyalty Accelerator
  • HOW IT WORKS
    • Overview
    • FAQs
    • Video Tutorials
  • PRICING
  • SHOPIFY APP
    • Overview
    • Shopify App Help
  • CLOVER APP
    • Overview
    • Clover App Help
  • NEWS
  • ABOUT
    • About Us
    • Management Team
    • Privacy Policy
    • EULA
  • CONTACT US
    • Contact Us
    • Order Rewards Cards
  • Get Started
  • HOW IT WORKS
    • Overview
    • FAQs
    • Video Tutorials
  • PRICING
  • SHOPIFY APP
    • Overview
    • Shopify App Help
  • CLOVER APP
    • Overview
    • Clover App Help
  • NEWS
  • ABOUT
    • About Us
    • Management Team
    • Privacy Policy
    • EULA
  • CONTACT US
    • Contact Us
    • Order Rewards Cards
  • Get Started

LATEST NEWS

November 18, 2020  |  By Scott Goble

In a Challenging Retail Environment, How Can I Keep Costs Down While Increasing Revenues?

In this challenging retail environment, how can I keep costs down while increasing revenues?

According to a Bain & Company report, many merchants are finding that building loyal customer relationships is their biggest opportunity to lower costs.  How do loyal relationships translate into cost savings? Consider the cost of serving a long-standing customer versus the cost of marketing to acquire a new one.

Across a wide range of businesses, customers generate increasing profits each year they stay with a company. In financial services, for example, a 5% increase in customer retention produces more than a 25% increase in profit. Why? Return customers tend to buy more from a company over time. As they do, your operating costs to serve them decline. What’s more, return customers refer others to your company. And they’ll often pay a premium to continue to do business with you rather than switch to a competitor with whom they’re neither familiar nor comfortable. Of course, not every customer has potential to be profitable and long-standing. Cost-effectiveness dictates that you segment clients to identify the subset that holds this potential, so you can target your investment in relationship-building.

Consider Chick-fil-A, a chain of quick-service restaurants that has so effectively mastered the economics of loyalty that it can afford to let store operators earn compensation that’s double or triple industry averages, while generating enough cash to grow the chain and give about 10% of profits to charity. Those compensation standards help grow loyal employees who nurture attractive client relationships.

Reallocate marketing investments

Systematically rank all of your customer acquisition campaigns on the basis of their yield of loyal customers. Shift resources towards programs that attract the richest mix of loyal customers. (Many firms today are wasting half their marketing expenses on disloyal customers who will never stick around long enough to pay back the acquisition investment.)

Customer retention depends on offering a customizable loyalty reward program

Why?  Customization is your best the path to building lasting customer relationships – which is the ultimate goal of any customer loyalty program. A customizable loyalty rewards program allows merchants to identify and tailor incentive to their high value repeat customers. The best performing programs offer instantly redeemable in store credits (vs. complicated points-based systems) to motivate return visits and higher customer spending.

Customer Loyalty Accelerator is available for download
on the Shopify App Store at  
https://apps.shopify.com/encorecla

Also on the Clover App Market at
https://www.clover.com/appmarket/apps/ZYTJYBWRK2W4A

Source:  “Prescription for Cutting Costs”, by Fred Reicheld, Bain & Company 

Previous StoryThe Best Loyalty Management Software Features Customizable Incentives to Reward Customer Behavior
Next StoryWhy is it essential for my customer loyalty program to be customizable?

Related Articles

  • Hive 60 day ROI chart
    Can Your Loyalty Program Deliver These Kinds of Results?
  • The-New-Kind-of-Customer-Loyalty-Your-Company-Needs
    The New Kind of Customer Loyalty Your Store Needs

Leave your comment Cancel Reply

(will not be shared)

Recent Posts

  • Can Your Loyalty Program Deliver These Kinds of Results?
  • The New Kind of Customer Loyalty Your Store Needs
  • How Shopify and Clover Merchants Can Ignite Dramatic Revenue Growth Right Now

CATEGORIES

  • Encore Incentives News (33)
  • Featured (6)
  • Loyalty & Rewards Programs (52)
  • Marketing Ideas & Trends (58)
  • New Technology (26)
  • Uncategorized (1)

ARCHIVES

  • April 2021 (1)
  • March 2021 (2)
  • January 2021 (1)
  • November 2020 (5)
  • October 2020 (2)
  • September 2020 (2)
  • August 2020 (1)
  • May 2020 (1)
  • April 2020 (4)
  • March 2020 (6)
  • February 2020 (2)
  • December 2019 (4)
  • November 2019 (3)
  • June 2019 (3)
  • May 2019 (3)
  • March 2019 (2)
  • January 2019 (1)
  • July 2018 (1)
  • June 2018 (2)
  • May 2018 (2)
  • April 2018 (4)
  • March 2018 (4)
  • February 2018 (2)
  • January 2018 (2)
  • October 2017 (2)

TAGS

#consumerpayments #POS #pointofsale clover covid covid-19 customer loyalty customer retention loyalty program restaurant retail rewards program shopify

LATEST NEWS

  • $100 graphic_v3
    $100 Referral Incentive Announced by Customer Loyalty Accelerator Thursday, 15, Oct
  • kohls-facebook-retail-
    Shopify and Clover Merchants Offer Customers a Loyalty Rewards Program on Par with Kohl’s Cash Monday, 21, Sep
  • The Secrets Behind Successful Loyalty Programs
    CLA Launches New Shopify App That Stirs Customer Excitement with Instantly-Redeemable Loyalty Rewards Friday, 4, Sep
Customer Loyalty Accelerator
  • HOW IT WORKS
  • PRICING
  • SHOPIFY APP
  • CLOVER APP
  • NEWS
  • ABOUT
  • EULA
  • CONTACT US

Customer Loyalty Accelerator is an offering of Encore Incentives, Inc., © 2019
Privacy Policy | All Rights Reserved. | Site created by Ad Ventures

[43605]
[43605]
[43605]
[43605]