December 2, 2020

How to estimate Return on Investment (ROI) of a loyalty program

There are two common reasons why customer loyalty strategies fail:

  • Either the customers don’t see enough value in participating.
  • or the company can’t financially sustain the program.

    A low-cost return preserves the company’s profitability, although it leads the customers to feel that the brand does not appreciate them enough. On the other hand, high-value rewards are mean to drive sales in the short-term but ultimately can harm business profitability.

    How do you choose rewards that are substantial enough to motivate customers, but won’t damage your profitability keeping the program financially sustainable?

    Download this whitepaper to:

    • Get to know why customer loyalty strategies fail.
    • Calculate the ROI of your loyalty program and find out if the program really helps or harms your business.
    • Estimate if a customer’s lifetime value exceeds the cost required of customer acquisition.

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