How to «measure» a loyalty program?
Simple discounts are like a painkiller, quick but short-lived - and don't really solve the problem of building loyalty.
How much do product range, discounts and service quality influence loyalty? Why do customers leave? How can customers be retained? These are questions that concern the owner of a small online shop as well as a large retailer.
Loyalty programmes are still one of the most important arguments when choosing a shop. Some of the most popular bonus schemes include: permanent or cumulative discounts, cashback in the form of bonuses or cash, and "free goods" when customers buy multiple items. Recent studies have shown that bonus schemes do not influence purchase decisions in the fashion, car and parts, optical and pharmacy categories. Some consumers stick with tried and trusted brands, while others easily switch to cheaper brands, including those that are completely new to the market. These sectors use different approaches and programmes to retain customers. Let's take a closer look at customer loyalty and the metrics that can characterise it.