Customer loyalty program can help to generate a great lead for your business, but at the same time it is to be ensure that the investment you are making for it, do it actually worth or not.
Sometime it is seen that if company is getting good business from their existing customers then it is not a great way to invest in such loyalty programs.
It is seen that keeping an existing customers can cost 5 times less than winning a new one.
Main steps involved in customer loyalty program are:
1). To study how is your current customers, in this certain analysis is to be made, what type of products are they buying, how long they have been your customers, how fast they pay, what type of products do they buy and how frequent they purchase, etc.
2). Prepare customer loyalty program, this is to be done when you have assessed the customer satisfaction level either through surveys, or feedbacks.
3). Set realistic goals for your program, for example if your customer purchase 100 units of products try to set goals for 110 this year, this will increase your sale by 10%.
4). Now the best step is set budgets for managing customers, separate budget should be made for retention and acquisitions of customer.
5). Now this step involves which customer to target, set some evaluation criteria for targeting customers.
6). Now make strategy to encourage customer loyalty.