The better you are at retaining existing customers, the more loyal your customers will be.
However, when your customers subscribe to multiple loyalty programs to get the most benefits, does retention remain a good success metric?
Clarissa Schealer, Capillary’s North American SVP Sales & Loyalty Expert, believes brand managers should look at loyalty program ROI in terms of CLTV
That’s because it recognizes the value a customer brings throughout the duration of their relationship, not just the act of continuing with a loyalty program.
She also recommends brands should pay attention to the nuances like:
Do people come in once and churn?
Are they coming to your brand repeatedly and increasing their spending?
Is the duration between two customer visits shorter than before?
Does their purchase frequency increase during a given period?
“We’re seeing brands increase their revenue by 20% and customer happiness by 50%,” Clarissa mentions. That isn’t surprising, given the close ties between happiness and loyalty. After all, customers repurchase products from a brand they love.
Clarissa also reveals how loyalty can solve various business challenges across verticals and the significance of Generative loyalty, among other things, in her recent interview with the Capillary team.
