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Perhaps the among the most effective ways of creating and maintaining the customer loyalty ratios lies in the ability to provide as many incentives as possible through the setting up of various loyalty programs.
These loyalty programs should ideally be able to increase the customer’s interest in staying with the product over a long period of time, thus repeat purchases become a norm.
The loyalty programs should ideally give the customer the satisfaction of knowing the merchant is interested in creating an environment where the customer is encouraged to be a major part of the business.
This inclusion makes the customer feel important and considered and it also inspires the customer to stay loyal as the rewards for past purchases are tagged to the next purchase.
The loyalty programs are usually designed according to information that may include information on buying patterns and preferences of the customers.
Buy ahead discounts, purchase level rewards, rebates based on spending levels, upgrades or special added benefits are all different incentives that can be included in the loyalty program to make it as enticing as possible.
The buy ahead discounts are designed to ensure the customer is locked in from the very beginning when a purchase is made. This may be done in the form of a loyalty card that entitles the purchaser to enjoy immediate discounts or free gifts with future purchases.
The other popular loyalty program item is the rebates on spending levels where the purchaser is given bigger discounts when the purchase amount passes the relevant levels.
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