Bring ‘Em Back for More

Q. What are a few reasons to institute a loyalty marketing program?
A. The one that supersedes anything else that merchants plan for specifically is to increase lifetime customer value (LCV). This is at the heart of what merchants want to do.

A secondary goal would be to increase referrals. People talk about loyalty and interpret buying behavior, like a customer purchasing more frequently, or having bigger orders or whatever as loyalty. But there’s been some real study on it, and at the core of it, the most loyal customers are the ones who recommend you to other people. Ultimately, if you get more people to recommend you to friends, family, colleagues, etc. that’s really where it’s at.