The key discipline
Yes, winning new customers is important, but customer loyalty is – at least – just as important. Convincing satisfied customers to buy other products or services from you is generally easier and more cost-effective than winning new customers. What’s more, satisfied existing customers provide free advertising through personal recommendations and bring you new customers this way.
The Customer Lifetime Value or the average order value of your existing customers can be important indicators for assessing just how effective your customer loyalty strategies are. The prime objectives of the tactics you employ can vary greatly from campaign to campaign, depending on whether you want to win back valuable customers, retain existing customers, increase the transaction value per customer or improve customer satisfaction.