The Customer Loyalty Solution : What Works (and What Doesnt) in Customer Loyalty Programs

Chapter 1: How Database Marketing Works

Table 1-1 Effect of 5 Percent Increase in the Retention Rate

Table 1-2 Risk/Revenue Matrix

Table 1-3 Price Offers

Chapter 2: The Mirage of CRM

Table 2-1 Warehouse Cost

Table 2-2 Database Cost

Table 2-3 Comparison

Table 2-4 Net Profit

Table 2-5 Life Insurance Net Present Value

Table 2-6: New NPV

Table 2-7 Gains from 5 Percent Increase

Chapter 3: Selling on the Web

Table 3-1 Monthly Value of a Commercial Consumer Web Site

Chapter 4: Computing Lifetime Value

Table 4-1: Changes in Ownership over the Years

Table 4-2: Adjusted Repurchase Rates

Table 4-3: Final Repurchase Rates

Table 4-4: Lifetime Value

Table 4-5: Discount Rate Conversions

Table 4-6: Lifetime Value after Retention Programs

Table 4-7: LTV Gain

Table 4-8: Car Leasing LTV

Table 4-9: Improved Lease LTV

Table 4-10: Lease LTV Gain

Table 4-11: New-Car Purchases by Used-Car Owners

Table 4-12: LTV of Used-Car Owners

Table 4-13: Next Best Product

Chapter 5: The Value of a Name

Table 5-1 Chicago Home Buyers

Table 5-2 CD Buyers

Table 5-3 Sales by Medium

Table 5-4 Two Methods of Contact

Table 5-5 Value of a Name

Table 5-6 Lifetime Value for Wardchem

Table 5-7 Discount Rate Calculation

Table 5-8 Revised Lifetime Value

Table 5-9 Gains through Retention-Building Activities

Table 5-10 Annual Email Name Value

Table 5-11 Profit per Name from Regular Promotions

Table 5-12: Profit per Name from Low-Cost Item Promotion

Table 5-13 Profit per Name from Last-Minute Special

Table 5-14 Control LTV for Women’s Dress Chain Customers

Table 5-15 Improved LTV through Retention Messages

Table 5-16 Gains through Retention

Table 5-17 Name Value from Retention Messages

Table 5-18 Name Value from Follow-Up

Table 5-19 Name Value from Viral Marketing

Table 5-20 Name Value from Newsletters

Table 5-21 Value of Name Rental

Table 5-22 Total Name Value

Chapter 6: The Power of Communications

Table 6-1: Cost per Response: Email vs. Direct Mail

Table 6-2: Stride Rite Results

Chapter 7: Customer Response

Table 7-1 Comparative Media Results

Table 7-2 Card Response

Table 7-3 Cost per Registrant

Table 7-4 Responses from an Unknown Source

Table 7-5 Trucks Sold

Table 7-6 Overall Truck Promotion Results

Chapter 8: Marketing to Customer Segments

Table 8-1 Quadrant Marketing

Table 8-2 Testing Segment Promotions

Table 8-3 Age Segment Promotion

Chapter 9: Helping Business Customers to Become Profitable

Table 9-1 Sales by SIC Groups

Table 9-2 Customer Companies by Number of Employees

Table 9-3 Average Sales by Product Type

Table 9-4 Next Best Product for XYZ Company

Table 9-5 Ranking of Sales within a Territory

Table 9-6 What the Top Three Customers Buy

Table 9-7 Top Products of Prospect Companies

Table 9-8 Base LTV

Table 9-9 Annual Costs of VMI Software

Table 9-10 Improved LTV

Table 9-11 Profit Gain with New System

Chapter 10: Customer Management

Table 10-1 Warehouse Costs

Table 10-2 Increased Profits from Complete Data Warehouse

Table 10-3 Increased Profits from Data Mart

Table 10-4 Warehouse Costs

Table 10-5 Risk/Revenue Analysis

Table 10-6 Increased Return

Table 10-7 LTV before Loyalty Program

Table 10-8 LTV with Loyalty Program

Table 10-9 Gain in LTV from Loyalty Program

Table 10-10 Prospect Report

Table 10-11 Lotto Results

Table 10-12 Segment Performance during the Second Year

Chapter 11: Letting Them Come behind the Counter

Table 11-1 One-Time Costs

Table 11-2 Yearly Costs

Table 11-3 Base LTV

Table 11-4 Improved LTV with New System

Table 11-5 Gain from Changes

Chapter 12: Can Database Marketing Work for Catalogers?

Table 12-1 LTV of Catalog First-Time Buyers

Table 12-2 Improved LTV with Web Site Software

Table 12-3 Gains from Software Improvements

Table 12-4 Market Penetration

Table 12-5 First-Year Results

Table 12-6 One-Time Setup Costs

Table 12-7 Profit from Email Marketing, Year 2

Table 12-8 Second-Year Results

Chapter 13: Finding Loyal Customers

Table 13-1 Penetration Analysis

Table 13-2 Results before Using Cluster Selection

Table 13-3 Results after Using Cluster Selection

Table 13-4 Selling to Segments

Table 13-5 Regular-Customer LTV

Table 13-6 Referred-Customer LTV

Chapter 14: Profile Marketing

Table 14-1 Return on Promotion

Table 14-2 Cost per Survey by Mail

Table 14-3 Cost per Survey by Email

Table 14-4 Results of a Survey

Table 14-5 Cost of a Survey