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Customer Loyalty MARKETING
Creating
A POPULAR saying in the mar- keting world is that it costs 10 times as much to acquire a new customer than it does to keep an existing one. Despite that, it seems the majority of marketing cam- paigns are centered on reaching prospects and converting them into paying customers, rather than maintaining relationships with existing brand fans. This is especially the case in the world of retail, where many brands offer one time promotions to fi rst time customers, rather than the ones who make shopping with them a regular occurrence. Accord-
Over 20 Years of Experience in Jewelry Manufacturing
ing to a recent report from The Nielsen Company, if retailers want to succeed with their marketing initiatives this year, they’ll need to reverse these habits and begin focusing on loyal customers. The most effective way to con-
tinually engage regular shoppers is through a customer loyalty pro- gram. A successful program will keep existing customers coming back, rather than going to com- petitors, because they have more incentive to shop with the retail- er that is offering discounts. For many retailers, the best way to do this is through customer loy- alty cards. “It is critical to deliver the right promotions to the right shoppers to keep them coming back,” asserts Nielsen. “Expect to see more retailers leveraging the shopper insights from this data, to create up selling op- portunities, shopping lists and home inventory management tools, which provide shoppers reasons to keep shopping, without pushing the item-sale button as often.” According to Nielsen, tech-
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96 March 2011
nology will play a greater role in enhancing the shopping experi- ence in 2011. Nielsen suspects that consumers will be able to use mobile technologies to assist them as they browse retail shelves, while retailers will incorporate other technologies to expedite the shopping process. “Big and small retailers are using technology to
continued on page 103 INDEPENDENTRETAILER
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