The company had put a loyalty program in place and had some minor success. Now it’s time to renew the contract with the loyalty consultant.
It had been well over a month, and the loyalty program was increasing repurchase. Repeat buys were now up over 20% of their orders. Jim mused that this meant for every 100 orders he was saving at least $220 in acquisition cost. Customers who purchased multiple times were even more profitable. It was a good incremental gain.
Jack D, the loyalty consultant, presented the results of his program. He asks Jim if he would consider an expansion of the effort. He suggests that getting a repurchase rate and shortening the buying cycle is a powerful way to scale revenue and profit.
Jim did accept a little expansion of the effort, but he was budget constrained at this point. It was helping. Repeat buys were approaching the number he had in his head for repeat purchases.
Choice – Increase Choice eliminated: Drop
Comments