Bring ‘Em Back for More

Q. What steps should a cataloger take before instituting a loyalty program?
A. First define what overall goal they want to achieve, whether it’s extending lifetime customer value or something else.

Next they should decide which specific tactical course will help them reach that goal. Whether it’s cross-selling between product lines or increasing average order value, you have to define what will help you reach your ultimate goal. Every cataloger knows who its best customers are, and can measure what makes them so great. If the behavior of the average customer is to become that of a great customer, what [can the cataloger change to] make it happen?