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Introducing DIAL: The Framework for Creating Measurable Customer Loyalty
In today's fast-paced business landscape, creating and maintaining customer loyalty is more crucial than ever. To achieve this, a strategic framework...
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AIR
Acquire. Interact. Retain.
Bringen Sie Leben in Ihre Kundenbeziehungen
Wie der britische Lebensmitteleinzelhändler ASDA die führende Loyalty Plattform AIR und die Expertise von Eagle Eye nutzte, um in nur 3 Monaten das Loyalty-Programm "ASDA Rewards" einzuführen.
2 Min. Lesezeit
Sarah Jarvis on 21 November, 2024
Co-written by Hunter Murray and Anand Patel from Loyalty & Reward Co
In 2025, it’ll be 30 years since Tesco launched their Clubcard program in the UK, one of the pioneering retail loyalty schemes in the world. Clubcard has clearly stood the test of time, with "I Love My Tesco Clubcard" being one of the businesses' key strategic pillars.
Since 1995, loyalty programs have exploded in popularity, with new propositions continuing to launch across sectors and geographies to this day, with businesses investing significantly to build, maintain and innovate these initiatives. Yet, as with any investment, it's crucial to understand the return generated by these efforts so they can continue to be optimised, which is where loyalty Return On Investment (ROI) comes in.
Measuring loyalty program ROI is critical for a number of reasons:
Measuring loyalty ROI isn’t a "one and done"; it’s something that should be tracked throughout every stage of the loyalty lifecycle.
For established programs, measuring ROI becomes part of an ongoing process, continuously monitoring the effectiveness of the overarching program and adjusting the measures as needed
The basic formula for Loyalty ROI is straightforward:
Essentially, ROI is defined
However, capturing the full picture can often involve a more nuanced approach, including indirect revenue contributions such as NPS, increased brand affinity and customer advocacy. As a result, businesses will often report on the pure financial ROI alongside other KPIs - most often customer lifetime value (CLTV) - to offer a more complete view of loyalty program ROI.
At its core, loyalty program ROI shouldn’t just be about tracking the financial and transactional, it should be about understanding the value of customer relationships. A strong, well-designed loyalty program should build trust, improve brand affinity, and turn customers into advocates who keep returning time and again.
Understanding the ROI of loyalty and why it’s so important is just the first step. To learn more about how to measure loyalty ROI effectively, stay tuned for our next article, How to Measure Loyalty ROI, where we’ll dive deeper into the practical strategies for calculating the true value of loyalty.
Loyalty & Reward Co have a proven method for helping businesses calculate loyalty ROI. Connect with Loyalty & Reward Co here to discuss how our LROI™ approach can help you.
Mit mehr als 15 Jahren Erfahrung als Retail Marketing Leader in der Kundenbindungsbranche hat sie mit einigen der weltweit größten Einzelhändler und FMCG-Marken zusammengearbeitet, um ihnen zu helfen, profitables Wachstum zu erzielen, indem sie den Kunden in ihren Entscheidungsprozessen in den Vordergrund stellen. Ihr Fachwissen umfasst die Gestaltung von Kundenbindungsprogrammen, CRM, Personalisierung, Datenanalyse und Vermarktung sowie die technische Umsetzung von Initiativen, die Einzelhändler und Marken näher an ihre Kunden bringen.
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