Customer loyalty schemes 'still favoured by firms'

Thursday, 4 February 2010

Firms are continuing to use

customer loyalty schemes to reward shoppers, new research has shown.The Leaders in Loyalty report, published by the Chief Marketing Officer Council, showed that 61 per cent of marketers think that the most profitable consumers tend to be those enrolled in customer loyalty programmes.

In addition, 65 per cent of respondents said that customer loyalty initiatives are an important part of their company's marketing strategy, while 13 per cent believe they have been highly effective in boosting brand preference among members.

The research found that 34 per cent of marketers think that free gifts and premiums are an essential way for schemes to drive customer loyalty and 39 per cent consider discounts and savings to be among their key benefits.

"Investments in loyalty programs will continue as nearly 80 per cent of marketers are committed to maintaining or further funding loyalty programmes as customer retention and relationship building vehicles," the report predicted.

CRM Magazine managing editor Joshua Weinberger recently pointed out that customer retention tends to be more cost effective than customer acquisition.

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