Loyalty Ladders -- do you use them?

greenspun.com : LUSENET : Customer Value Councils : One Thread

Loyalty ladders are becoming a hot topic in the literature of customer loyalty and satisfaction. Anybody using this concept in an organized way as part of their CV activities? How about sharing the know-how?

Here's an example:

"One reason for this growth is that retailers have begun to closely analyze shopping patterns and the picture they paint is clear. According to Retail Ad-Week, a typical 'loyalty ladder' would attribute a staggering 43 percent of sales to only 10 percent of a given retailer's customers; its 'loyal' customers. Interestingly, according to the publication's analysis, if a retailer could move one third of its customers up one step of the ladder; from infrequent to occasional, occasional to regular or regular to loyal; the result would be a very dramatic 24 percent sales increase."

-- from Catalina Marketing Corp. newsletter on "Database Marketing" at http://www.catalinamktg.com/pos295p2.htm

Please post any thoughts! Carl Arendt (Webmeister)

-- Anonymous, June 12, 1998

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