Volume 3, Number 5
June 2009 Quick links
Special Promotional Offer
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Mpell Solutions For Sales Support: For Marketing Support: For Redemption Support:
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 In This Issue:
A recent survey of more than 4,500 consumers by Forrester Research found that loyalty varies across industries. Among 12 industries, retailers appear to inspire the most loyalty, with customers of TV service providers and Internet service companies proving more fickle. Loyalty Test
A higher share of consumers are reluctant to switch business away from favorite stores than from hotels and airlines
Source: Forrester Research
So who cares about loyalty anyway? Many studies have shown that a 5% increase in customer loyalty can drive a 5-10x increase in the lifetime value of that customer. In other words, it is the most cost effective technique for improving sales and profit.
So what can I do about it? The easiest technique for improving loyalty is using promotions as an incentive for loyal customer behavior. For instance, retail banking customers who use direct deposit, ATM, and online bill pay services tend to be much more profitable than those who don’t use these services. As another example, members of discount clubs who take advantage of the discounts tend to be much more profitable than those who don’t. Given that loyal customers are more profitable, the ROI for loyalty-based incentives is substantial.  To learn more about these and other great promotional ideas, visit us at www.mpellsolutions.com , email us at info@mpellsolutions.com or call 760-477-9261 and ask about the free gift with your next purchase.
We’ve noticed that special incentives and promotions are taking a more dominant position in print, online, and media creative. The urgency for a truly compelling call to action is increasing in this tough economic climate.
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