In today's competitive marketplace, it is becoming harder to increase conversion rates, acquire customers and retain them using traditional methods. A merchant should have some type of loyalty/reward program to target existing customers, as well as convert new customers into loyal customers. A study from Bain & Co shows a 30% increase in company value due to a 10% increase in customer retention levels. Good loyalty programs increase purchase frequency, average order value, and customer lifetime value by transforming a customer’s relationship with the brand from a transactional relationship to an emotional one.
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