Retain high value customers by recognizing customer lifetime value and delivering custom offers and experienced
You have often heard the cliché that all customers are not equal. And, obviously it’s true. Every company would like to invest their marketing dollars to retain their most profitable customers. You can see this across industries and most prominently in the hospitality industry where the frequent fliers of an airlines or frequent stayers of an hotel get pampered.
The research and data prove that it’s worth for these companies to go that extra step to pamper their best customers to retain them. Not only this extra care ensures customer retention, but also customer expansion – where these customers increasingly spend all their dollars in that specific category with that company thereby increasing the share of wallet.
In order to run a successful loyalty program, you need to consider several aspects such as customer purchase value, frequency of purchase, customer preferences, demographics, growth potential and customer churn probability. Many a times, companies reduce them to a discount program. These discounts that are given without much thinking neither build loyalty nor help company’s profitability.
At Deeta, we start with your business objectives and an understanding of your core customers. Then we help you segment your customers based on your business goals. In addition, we develop customer churn model that feeds into the calculation of customer lifetime value (CLTV). The CLTV of each customer is then used to determine investment levels either at individual customers level or at segment level.
Next, we profile customers based on behavior, interests, psychographics and preferences to tailor loyalty program benefits and rewards.
Analytics helps solve strategic and tactical business problems for store managers, merchandisers and marketing managers . Our Customer Loyalty Analysis will look at all factors driving conversion and retention for each of your customer groups to determine the optimal approach to target and drive loyalty for each customer segment.
If you are interested in starting or improving your customer loyalty program using sophisticated data analytics, call us at (773) 759-8300 or complete the form.