Frequent flyer miles program, SAM's Club
membership, Every 7th Subway sandwich
free, Credit card reward programs, Season Passes (memberships), Men's club,
These are all examples of Customer Loyalty Programs.
- Only 1 in 5 golfers are loyal to their public courses.
(NGF 2002 CLASP Survey)
- A 2% increase in customer retention
equals cutting operating costs by 10%.
(InfoMetrics, White Paper by Sally Foster)
- The cost of acquiring new customers is five times the
cost of servicing existing ones. (The
Loyalty Effect: The Hidden Force Behind Growth, Profits and
Lasting Value by Frederick Richheld)
After 10 visits, a golfer has referred an average of 7
new golfers. (Bain and Co., 2002)
- Repeat customers, on average, spend 67% more and a 5% increase
in retention yields a profit increase of 25 to 100%.
(Bain and Company, 2002)
All businesses stand to greatly benefit from offering customer loyalty
programs as they
get regular customers to use and buy more often and turn occasional,
customers into loyal, frequent patrons.
MILLION DOLLAR TIP: Discount programs offered to the public (eg. 2
for 1 deals in
golf discount books that feature 50 courses) attract nomadic, penny-pinching
customers. Instead, offer the benefits and discounts to your LOYAL,
customers in appreciation of their patronage by getting customers to join a
customer loyalty program. Like the hugely successful SAM's Club
model, people will PAY for the privileges and special discounts/ treatment.
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