Why it Works

National Pizza Chain Increased Orders by 93% with New Customer Loyalty Program 

If you’re looking for reasons why Loyalty Marketing works, then this is a perfect example.  You can read more about the Pizza Hut VIP program in this article

http://www.dmnews.com/Loyalty-Program-Gives-Pizza-Hut-Better-Slice-of-the-Pie/article/89157/

You can find other success stories every where you look.  Airlines – Hotels – Clothing Stores – Specialty Retailers – Auto Service Shops – Drycleaners – Restaurants – Coffee Shops – Book Stores – the list goes on and on.

There are literally hundreds of examples – statistics - and time-tested reasons that point to why loyalty marketing works.

Here are some of the most important reasons Why It Works:

	It’s 7-10 times more expensive to acquire new customers than it is to keep existing customers coming back.
	Over 75% of consumers have at least one loyalty card
	Repeat customers spend 33% more than new customers
	Having an up-to-date and working customer database can double the value of your business
	60% of consumers avoid advertising –
	Shoppers are spoiled.  They have come to automatically ask “if I give you my business, what will you give me in return”. They expect to be rewarded and will be more loyal to those businesses that give them something back.
	Studies show that customers who belong to a loyalty program visit twice as often and spend 4 times as much as those that don’t

In today’s era of non-stop, in-your-face advertising, consumers are worn out and showing signs of marketing fatigue. The multi-tasking digital lifestyle combined with constant media distractions in the home, car and workplace have caused people to just tune out.

Studies show that the average consumer is blistered with over 3000 marketing impressions per day! That means your ability to effectively reach consumers is if fading away.  

How do you get your message across in this storm of marketing chaos?

That’s where Loyalty Marketing comes in.  In this time of marketing overload – it’s more important to communicate with your customer one-to-one than through mass advertising channels.

Customer Reward Programs – Customer Loyalty – and Personalized Direct Marketing can help you break through the marketing clutter and create profitable customer relationships.

MORE REASONS WHY LOYALTY MARKETING WORKS

Loyalty Marketing Gives You a Better Return on Your Advertising Investment 

If your thinking “I have to have customers first”, you're absolutely right.  Acquiring new customers is the first step in the loyalty marketing process.  Unfortunately, the majority of businesses stop right there. They spend thousands of dollars to get new customers in the door…and then they do nothing. They spend the same money, doing the same thing and getting the same results year after year.

Many people define insanity as "Doing the same thing over and over and expecting different results." Does this sound familiar?  

Think about it for just a minute.  You spend a ton of money on advertising to get new customers….shouldn’t you do everything possible to get the most out of your advertising investment?

If you don’t take this opportunity to GRAB ‘EM - WOW ‘EM - REWARD ‘EM and most importantly GIVE THEM A REASON TO COME BACK….it’s like playing marketing roulette.

Customers that only buy one-time are the most unprofitable customers you will ever have.  Only when they become REPEAT CUSTOMERS do you actually make money.

Here are the economics of Customer Loyalty. Whether a customer buys from you once or a hundred times – your initial marketing investment is the same.  The only thing that changes over time is your Return on Investment! Every time that customer makes a purchase – your cost to acquire that customer goes down and your profits go up.  

Loyalty Marketing Turns One-Time Visitors into Long Term Customers

Customers really don’t become customers until they have bought from you at least twice.  The first time they buy, they are merely visitors looking for the value in what you have to offer - Looking for something special - Looking for a reason to come back.

Unless you have a formal customer loyalty program - or at least a loyalty marketing plan – the odds of being able to turn that visitor into a customer are drastically reduced.

• There is no reason for that customer to give you their contact information
  
• There is no offer motivating them to come back again.
  
• There is no long-term connection made between that customer and your business.

For more Facts – Statistics – and Reasons Why Loyalty Marketing Works, check out the 101 Reasons to Start an nTouch Loyalty Program Today.

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