Return on Investment (ROI) on properly implemented Customer Loalty initiatives are often reached within 6 months, only by calcualting cost savings from customer communication.

Here we are mentioning some other areas generating increased profits for even faster ROI and continous growth.

Customer Acquisition

The common and costly way for customer acquisition is marketing trough media like magazines, TV, radio and direct mailings where it is difficult to measure the real long time financial effect generated by a specific investment although it is well known to be a good way to make brand awareness in larger consumer groups. The most cost effective way is to use and reward your existing best customers as promoters acquiring new customers and to use affiliate partner companies to attract customers from new market segments.

Increase Visit Frequency

Increasing the visit frequency, even only by one time per customer, is very profitable and there are several ways to it. A foundation for frequently visiting members comes from the consumers shopping experience. What drives a customer to walk into the store even without the need to buy something? Expiring points is likely to generate an extra visit since the customer does not want to loose the self built up value.

Increase Spending

The correct mix of reward items in a loyalty program will encourage members to add an extra item or select a more expensive product alternative just to reach their goals to earn the reward item. Having a minimum start purchase as criteria for getting a "free" membership is another of many ways to drive increased spending.