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Lifetime Customer Value Identified as a Key Motivator for Customer Loyalty in Retail
CNN Money.com,
July 22, 2008
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Aberdeen, a Harte-Hanks Company (NYSE: HHS), released a new survey today on the current state of loyalty technology and process integration in retail. Aberdeen data reveals that the top business pressure impacting loyalty-related decisions of 58% of Best-in-Class companies in retail is the need to develop lifetime customer value.
"In times of stagnant growth, retailers need to develop lifetime customer value through improved customer retention, re-activation, and acquisition strategies. This will improve long-term stakeholder value and ensure an assured revenue stream for the retailer through customers who are expected to spend for several years," says Sahir Anand, senior analyst and chief author of the customer loyalty benchmark report.
Aberdeen data reveals that 93% of retailers execute loyalty programs as a standard offering for their web, store, or catalog channel customers. Such campaigns include, but are not limited to, point perks, rewards, coalition marketing, frequent buyer offers, or private label credit cards. The reports also indicated that lifetime customer value in retail is being overshadowed by the tactical nature of loyalty campaigns that target short-term demand. "Loyalty campaigns are executed without due consideration to ideal customer segments, tools, coordinated cross-channel marketing needs, and long-term customer relationships," says Anand.
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