donderdag 18 november 2010

Customer loyalty in actual practice


I have found an interesting case study by Kobie Marketing about the effect of a customer loyalty program on sales. The program was designed for a cellular phone company.
The pdf document describes what the loyalty program is about and how the researchers verified the effectiveness of it. The description of the method researchers used to examine the loyalty program is really elaborate. Therefore, I think this study has a high reliability.
The conclusions of the casestudy were remarkable: customers in the loyalty program spent an average of 35% more than customers in the control group (who were not in the loyalty program). What’s more, this program even generated an annual return on investment (ROI) of 252%. This comes down to an additonal profit of $2.52 for every $1 spent, after covering all costs.
The overall conclusion of the case study is that creating customer loyalty is a requirement, especially for companies operating in the mobile phone market.
(Case study)

Annelies Martens

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