Source: NCR Counterpoint
Although statistics vary, one fact is clear: It costs at least six times more to acquire a new customer than it does to keep an existing customer. Fortunately, loyalty programs that link to a robust retail point of sale system are continuing to boost customer retention efforts. Banks, airlines, technology firms, manufacturers, and retailers use loyalty programs to not only attract new customers, but to retain the support of customers who have previously made a purchase with them. When it comes to retaining loyal customers, experts consider these programs a must.
Las Vegas Casino Shows Businesses The True Value Of A Customer
Unbeknownst to many, the programs that are designed to improve customer retention originated in Las Vegas. The genesis of the programs reach back to Las Vegas, and loyalty programs are in large part responsible for increasing customer satisfaction at many casinos. Just as a well-constructed home must have a properly laid foundation to build upon, loyalty programs require a retail management system as their base.
Facing growing competition on the Las Vegas strip, Harrah’s casino started taking customer satisfaction more seriously. To do this, the casino implemented a database marketing system, today referred to as a retail point of sale system. Harrah’s launched its well-known Total Gold customer appreciation program. Vouchers were given to loyal customers who were invited to attend special events sponsored by the casino.
Surprisingly, instead of tying rewards programs to past customer purchasing behavior, the program linked customer rewards to future purchasing behavior. This required Harrah’s to design a system that could predict a consumer’s buying habits weeks and months in advance. It’s this system that became one of the earliest retail POS solutions developed and used in the industry.
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