A Framework for Loyalty and Its Measurement and Creating Loyalty Programs that Drive Business Performance

Direct Marketing, Mail Order, and E-commerce News from the National Mail Order Association

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Driving Business Performance: Customer First
A Framework for Loyalty and Its Measurement and Creating Loyalty Programs that Drive Business Performance

A new whitepaper has outlined the framework for the development of loyalty and retention programs and the measurement of these two critical customer-focused areas. This 30 page whitepaper is available to NMOA readers at no charge, in PDF form, by clicking here:
Driving Business Performance: Customer First

In summary, we offer a short review of the key themes addressed in this paper:

► The mandate must come from the top. Without support from executive management, success is questionable at best.

► Recognize that all customers cannot be treated equally. Customer segmentation is required to understand which customers should get a disproportionate share of the resources devoted to loyalty and retention programs.

► Loyalty and retention programs should be viewed as investments with an expected return. The development of a framework to provide this information is essential.

► Loyalty is best measured using a "share of account" metric.

► Statistical analysis is necessary to understand the "drivers" of loyalty.

► Actions should be prioritized based on value to the company and must balance the importance of a loyalty driver with the cost of program delivery.

► Programs must enable action at the customer level. Loyalty is a one-to-one proposition.

► Employees are an integral part of the picture.

► Training will be required to make it all happen.

The rewards of focusing on these principles are clear delivery on commitments to shareholders, market leadership, and a closer, stronger and more profitable relationship with your customers.

This 30 page whitepaper is available to NMOA readers at no charge, in PDF form, by clicking here:
Driving Business Performance: Customer First

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