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

Where Web response comes into its own is in the sophistication it makes possible and the very low cost. Once your Web microsite is set up and running, the variable costs of each customer response are exactly zero. We should note that we are not factoring in the setup costs here. Web setup can be expensive, but it is much less expensive than call center software. It is comparable to the elaborate arrangements that are necessary to receive, open, and enter data from phone, fax, or email.

The tremendous cost savings from use of the Web are possible only if customers are willing to go to the Web to respond. Whether they do so depends on how good the Web site is. If using the Web site is a superb experience, word will get around, and customers will flock to it. If the experience is annoying, unhelpful, uninformative, slow, or confusing, people will stay away in droves. For the present, do not expect the majority of your customers to respond via the Web. The phone will be the response mechanism of choice. But this is changing every day as Web use grows. For the Web to be successful in database marketing, your company is going to have to put a lot of effort into making the experience satisfying for the responder. Here are some of the things that you are going to have to provide:

Of course, there are still millions of Americans who do not yet make a habit of going to the Web in response to promotions. That number is going down by thousands every day. Before you finish reading this chapter, several thousand additional U.S. households will have come online. Today nearly everyone above the poverty level has a computer. Just about everyone is using email at work or at home. While people are looking at their email, it is an easy step to click on a Web site contained in the email to respond to your promotion.

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