"It is ten times more expensive to acquire new customers than it is to keep existing customers"

Building customer loyalty is a challenging endeavor. Especially when you consider that a satisfied customer is not necessarily a loyal customer. Customer loyalty seems like a quaint notion in the Internet age, when customers can search out lower prices and defect to competitors with a mouse-click. Research has found that in the faceless online market, customers yearn for trustworthiness more than ever. That kind of loyalty is immensely valuable: Analysis shows that a 5 percent increase in customer retention rates results in a 25 percent to 95 percent increase in profits.

There are several ways your company can implement an affinity program.

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