In a recent announcement, MediaTrac, a marketing technology company, noted it has acquired over 6 million members. This is a peak for its customer loyalty and service retention program, LoyaltyTrac. In addition to this, in 2009, dealers utilizing LoyaltyTrac’s service reward program were able to obtain a 24% increase in the number of visits from customers, as well as a 9.7% increase in sales.
According to the amazing success of LoyaltyTrac customer loyalty and service retention program, establishing, tweaking, and maintaining incentive programs can actually motivate change in the buying habits of customers; it can even prompt them to purchase more. To show its effectiveness, in the first year of the customer loyalty program launch, members purchased more than $1 million worth of products and services. This is a whooping 100% return on investment.
This type of value-based customer loyalty strategy has the potential to establish connections with a variety of customers, as well as the flexibility to focus on the most profitable customers.
Managing partner at MediaTrac, Michael Gorun notes that participating vendors realize “the focus has to be customer loyalty and retention and are turning to more proactive” solutions that provide “a definite and measurable ROI.”
Business owners and leaders should think about implementing customer loyalty programs; it is a cost-effective strategy that will help keep revenue up during the recession. To learn these business smart strategies, entrepreneurs should find professionals in the incentive industry and discuss ways to learn the tricks of the trade.