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Having legions of loyal customers is one of marketing’s Holy Grails. But achieving loyalty in a highly competitive market requires a loyalty programme that’s innovative and responsive to customer needs, the ‘IMM Journal of Strategic Marketing’ reports in its latest issue.

Increasing customer retention by as little as 5% can lead to an increase in profits of between 25% and as much as 95% reveals a Harvard Business School study conducted in the US. It is motivation enough for companies to turn to loyalty programmes as a means of keeping customers coming back time and time again.

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