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I am a newcomer to implementing a loyalty program in a consumer-tech company (as a Business Owner of Loyalty program). I am writing this article to capture my experiences, discoveries, and serve as a guide for future initiatives. The article will not delve into the specifics of designing or managing loyalty programs but will provide an overview of loyalty program essentials.
1. Why My Company Implements A Loyalty Program and Expectations
From Antavo Global Customer Loyalty Report 2024 (link to report here), loyalty programs are a worthwhile investment, generate 4.8 times more revenue than they cost. Additionally, 27% of companies’ total marketing budgets are allocated to customer loyalty and CRM.
Customer retention takes precedence over acquisition, with 67% of companies planning to increase investment in retention during economic downturns, while only 31.2% aim to increase customer acquisition investments…
Above’s a typical answer to why loyalty programs are implemented. As for our company, I believe the reasons also stem from wanting to retain customers, increase customer lifetime value (CLV), and boost profitability as customers spend more with us.
2. Key Performance Metrics (KPIs) for our Loyalty Program
- Activity Rate: This KPI measures how effectively the loyalty program encourages purchase-related behavior, identifying customers…
