How hard is Customer Retention for Luxury Segment?
I’m frequently asked about customer retention in the Luxury segment.
Although the personalization and precision of your offers will be extremely important, the fundamental approach remains the same.
How to start:
1. Measure where you stand today (LTV, satisfaction index, NPS, churn rate)
2. Think about customers’ segments and specific strategies to grow Loyalty for these segments
3. Design a ‘base mechanic’ of the Loyalty Program
4. Establish a consistent data collection, storage, enrichment, and management process
5. Create personalized offers for different segments to keep your Loyalty Program engaging for different customers
6. Analyze the results, adjust your campaigns
7. Get back to #1 every 3 months. Adjust your strategy every 6 months.