Brand loyalty is cheap compared to securing a new customer. It is estimated that the cost of acquiring a new customer is 21 times higher than retaining an existing one. Smart marketers focus first on keeping happy customers, and encouraging them to buy more, trade up, etc. With the right strategies and investments, online retailers can actually transform eCommerce into a greater market share and enhanced growth in sales.
As we know, change is the only constant factor. So the answer to, “What is eCommerce” is always changing. However, experts predict a very promising future for eCommerce in the years to come. Estimates indicate that over half the US population (150 million consumers) shopped online in 2012 with online sales increasing between 15-18% annually. Traditional retailers are moving online and eCommerce retailers are jumping on remarketing and others strategies to keep customers coming back.
To increase customer lifetime value and strengthen Web loyalty, retailers are focusing first on packaging and delivery options, thereby making the shopping experience hassle-free to incentivize it to existing customers. Long-term rewards and incentives that have worked so well for banks, hotels, airlines, etc. work even better for online retailers because customers are welcomed as returning friends and can easily check their status, points etc. as they shop thus creating a direct relation between action and reward.
If a company wants to introduce a new product or service they make incentivize a customer to try it for the first time with a free sample or a deep discount but they can also reward loyal customers with an increased number of points in a loyalty program. The customer has been incentivized and rewarded at the same time, no doubt a powerful promotional combination. Combine those two strategies with rewards for loyal customers that who refer new customers to the product or service and you have a winning marketing strategy.
Capitol Marketing Generates Incentive Marketing Success
Capitol Marketing is proud to be the largest provider of individual travel awards in the U.S. because we create success for our clients. Since 1995 Capitol Marketing has provided solutions that have increased the revenue of our clients by more than $200 million.
We deliver R.O.I.
The average cost of a CMC promotion is one of the lowest in the industry. We provide outstanding Return on Investment compared with our competition and compared any other types of incentive solutions.
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