![\"Outlook_1\"](\"http:\/\/rai.net.in\/blog\/wp-content\/uploads\/2014\/02\/Outlook_1.jpg\")
<\/a>\nLoyalty as a phenomenon is widespread, but how many retailers comprehend its potential and appreciate its power? Price Waterhouse Cooper (PWC)’s report on \u201cThe best business allies: Retaining Customers\u201d focuses on what retailers can do. STOrai highlights:<\/p>\n
As the global economy slows down, retailers want to ensure that customers remain loyal.\u00a0 Acquiring a new customer costs 5 times more than the cost of deepening an existing customer relationship. Investment in these high-value segments (‘high value customers’ – HVC) is the focus of the PwC report on Loyalty. According to PwC’s 13th Annual Global CEO Survey, 60% of CEOs expect customers to play a more active role in product development. In addition, 90% consumers trust peer recommendations but only 14% trust advertisements. Thus, an optimal loyalty programme should have a perfect balance of the right customer, the right message and the right channel leading to higher referrals and repeat purchases.<\/p>\n PwC believes that loyalty programs need to be structured on three dimensions – interactions, incentives and intelligence.
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\nConsumer churn has led to a rise in marketing & consumer acquisition costs \u2013 and retailers are using loyalty programs as a way to retain consumers. Retailers with mature loyalty programs have realized that 20% of loyal customers can account for as much as 80% of sales.<\/p>\n
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\nCompanies are shifting from being product-oriented to consumer-oriented.<\/p>\n
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