Category: Customer Loyalty

Customer Loyalty Incentive Programs

Churn Baby, Churn: Do you have a customer retention strategy?

customer retention strategyEvery company’s goal is to retain clients year to year.  Depending on what you read, existing customers deliver 4 to 1, 10 to 1 or 20 to 1 (I am pretty sure that any ratio will do!) ROI over new customers.  “The Leading Cause of Customer Churn, and How to Avoid It” looks at what exactly is lost when a customer walks out the door and does not come back as well as some different strategies to reduce churn.  It is an important topic, because reducing churn even by a small percentage can increase your profits exponentially.

One item that was identified that I had not read before was overconfidence that once a customer makes an initial purchase, they will be back soon to make another and another…  While that may be true, it certainly would increase one’s odds by giving that new customer a specific reason to come back.  These can range from promotions to surveys to a phone call just to see how they are doing with their purchase.  Makes sense, but how many companies have a specific strategy?  Once customers have made their second purchase, their profitability increases 4 times, 10 times, 20 times, you get the idea.

Personalization is another area where new customers can be encouraged to become repeat customers.  General information about your new products can be helpful, but a personalized message to your customers recommending a new widget based on their last purchase is better.

OK. Here comes the plug. All of these areas mentioned from promotions and new product introductions to personalization and surveys are all excellent areas for a points-based loyalty program.  “Hey, (insert customer name), we value your business and have provided you with 5,000 points in Our Company Rocks Loyalty Program as a way of saying thank you” or once the program has been established an offer for double points on a new product introduction or for completion of a customer survey.

So, do you have a customer retention strategy?  Let us show you how a loyalty program can make it stronger.

Incentive Travel, Reward and Recognition Trends

The Incentive Research Foundation recently released their 2017 Trends Study, which was developed through collaboration by the IRF’s Board of Trustees and advisors.  The study lists 10 important trends for incentive travel, reward, and recognition programs in 2017.  Below are some of those findings along with my observations and comments. The Increasing Demand for Non-Cash… Read more »

Spotlighting Merchandise Rewards

Small businesses are experiencing high levels of success utilizing incentive programs that feature merchandise rewards, according to a recent IMRA (Incentive Manufacturers and Representatives Alliance) survey/study.  The survey was conducted in partnership with the IRF (Incentive Research Foundation) and focused on companies with between $1 million and $50 million in annual sales. IMRA found that… Read more »

Gamification – Of Leaderboards and Checkers Boards

As I’m sure that our readers know, gamification is a pretty hot topic these days. However, what our readers may not know, or may not have thought much about, is that there can be confusion in the marketplace about the relationship between gamification and interactive games – especially games of chance. Here at QIC, we’ve… Read more »

Sales and the Performance Arena

A recent study conducted by the Incentive Research Foundation sheds some interesting light on rewards favored by incentive program participants.  It also describes the relationship and importance of certain “awarding dynamics” to overall program success. The physicality of the award presentation The visibility or notoriety gained by recognition among coworkers The inclusion of executive management… Read more »