You can call it neo Pareto’s Law. The old one says the 80% of your business comes from 20% of your customers. Here the rule is all about leveraging. Now Nielson//Net Ratings survey says nearly a fifth of online population accounts for 46% of all online shopping.
They are termed as the most valuable purchasers (MVPs). They are the lots that spend most money over internet and account for the largest number of purchases
So, for online retailers it’s the best time to recognize their most valued customers and chalk out plans accordingly.
The seller very well is familiar with the buyers, programmes can be differentiated ex ante to retain the most valued customers by offering them relationship (make it e-CRM) specific benefits.
…because the basic conditions for online customer behaviors are much dissimilar to than the normal customers. Contrary to real word barriers like geographical or interpersonal relationship between customer and shop personnel do not exist here.
So, switching vendors is easier on online. For online vendors loyalty program does make sense. Isn’t it?
Two important loyalty programs
1. Reward System
Give members financial reasons to smile
2. Virtual Communities
Social and service aspects. Community facilitation
