If you ask any marketing director, loyalty programs are a function of marketing. If you ask any long term customer, why they are loyal, service, quality, and responsiveness top the list.
Customer Relationships
Acquisition rate is an important metric because it measures the growth of your customer database. Monitoring it on a regular basis allows you to see how well your marketing converts prospects into customers.
In the good ole days, BG (before Google), we could predict response rates and average orders for our best customers within 5%. The marketing team segmented the file, rolled out the projections, mailed the catalog, and filled out the deposit slip. (Okay, that is a little bit of an exaggeration, but if you have a traditional catalog background, you know exactly what I am talking about.)
We value you as a customer, but you don’t provide enough business to justify the few bytes your information occupies on our server. We are providing this opportunity for you to keep your frequent flyer miles. Since you haven’t flown with us for a while, you have 30 days to use the travel miles you have earned.
Rarely does an experience with a company amaze me. So when one does, I have to take a seat and catch my breath. This is one of those times and I have to share it with everyone.
