1. Some Benchmark Figures (1/3)
Benchmarks for increased sales volume due to loyalty programmes
British Airways - Executive Club provides £ 300 million revenue and supports a further £ 2 billion in revenue; costs £ 50 million per annum employing 100 people
Wells Fargo Bank - saved US$ 84 millions through offering online banking services to target customers; sales rate went up from 1.8 to 2.4 services per customer; aggregated customer information and personalised information has allowed to develop close customer relationships
NOP research - supermarket cards have failed to have a significant effect on shopping behaviour.
Boots Advantage - trials with 94,000 customers produced an increase of 3% in sales; official target set to 4% for launch.
Safeway measures success not in response to promotions but in influence on buying behaviour of a wider circle of buyers (friends and family).
American Express Membership Rewards - introduction of programme increased card spend by 40%.
JD Power - loyal buyers of cars spend in average US$ 1,200 more per vehicle than buyers who have switched from other brands.

2. Some Benchmark Figures (2/3)
Benchmarks for reduced customer defection rate due to loyalty programmes
Jones Intercable, Fla, USA - offers seasonal rates and bulk billing for condo and homeowners associations; churn rates fallen from 4.4% in April 96 to 2.2% in April 97.
Tominaga M, ‘Die Kundenfeindliche Gesellschaft’ - customers defect because of failures in service (68%), failures in products (14%), wrong pricing (9%), changing buying requirements (5%), change of address (3%), death (1%).
Telecommunications, Nov mobile customers defect because of price (40.9%), geographic coverage and network problems (19.3%), customer service problems (10.2%), voice quality (5.7%), incorrect billing (5.7%) and other.

3. Some Benchmark Figures (3/3)
PricewaterhouseCoopers has knowledge about several customer loyalty programmes. Out of these programmes, the following benchmarks are collected:
Programme
objectives:
Higher average customer turnover due to cross-selling/ up-selling
Due to more loyal customers, win-back costs don’t arise
Members in loyalty programmes defect less often than non- members
Benchmarks:
Airline in Europe:
72% of the loyalty members spend club products and services instead of services of the competitors. The share of wallet is rising.
Keebler (US; Food):
After launching a loyalty programme for a kids club, the turnover in this segment rose 100% and the market share rose from 21 to 29%.
Burger Kids Club (US; Food):
The turnover tripled after launching a loyalty programme in the youth segment.
Marks and Spencer (Retail Shops):
The turnover of loyalty club members is three times higher than for non-club members.
Nieman Marcus direct:
After launching the In Circle Programme, the average turnover of a club member rose 25%.
Amexco:
After launching a loyalty programme, the average turnover of a club member rose 55%.
European Bank:
Loyalty programme members use the basic bank products and services between % more than non-club members.
European Telco:
The planned cross selling effect after launching a loyalty programme is between 5-15% per year.
Swiss Bank:
The set-up of a new bank account costs about 400 Swiss Francs.
France Telecom (Source: Datamonitor):
The costs for customer win-back in mobile communications business is between 1’500 and 2’200 French Francs.
US Telco (Quelle: Telecom Magazine):
The costs for customer win back in mobile communications business is between 300 and 600 US Dollars. The costs for customer retention is between 50 and 100 Dollar.
60% of the customer defection is within the first three months. By focusing to the customers, the churn in the US mobile communications market could be reduced from 50 to 30%.
Customer Retention Costs (Gartner):
To win back a new customer is 4-10 times more expensive, than to hold an existing customer.
MCI (US Telecommunication):
MCI gives 2‘000 points for new customers as a win back or acquisition present.
If a customer uses these points for miles in frequent flyer programmes, the value is about 400 US $.
Swiss Bank:
The normal defection rate is 5% in the private market. The defection rate of members in the loyalty programme is 2%. The reduction therefore is 60%.
European Telco:
The expected rate of not churning/ defecting due to a customer retention programme is 50% (mass market)
Amexco:
The defection rate of non-members is 15%. The defection rate of Amexco Club members is 2%. The improvement due to the loyalty programme is 87%.
MCI (US; Telco; Gannett News April 98):
MCI could rise its market share in international telephony with high spending customers from 19 to 40% by combining its loyalty programme with the ones of Airlines.