Customer Loyalty Program Cost Effectiveness

The Viral Capitalist system allows for a portion of the profits 25% to go to the customers. How does this make sense from a bottom line point of view?

1)Get rid of rewards programs - Many large companies already have loyalty programs think air miles or VIP points, Canadian tire money or some other membership type rewards. With the information to collect customer data already in place the cost of setting up a program is negligible. Company's already have membership lists with specific customer numbers. Usually these programs run from under 1% to 3% of the cost of a customers purchase.

2)Reduced Marketing Costs - The second thing that companies do is bombard us with media spectacles, constant phone calls, unnecessary emails, flayers and various ads that try to trick us into buying. The costs involved with these practices can be cut out. although some marketing is necessary much of it isn't as it insults peoples intelligence and pisses them off.

3)The customers themselves become your sales force - the more people they recommend the more money they make. The more their friend recommends - they both benefit. and so on like a virus.

4)Customers will be very loyal - or as loyal as a person would be to their own company because it is their own company. Over time as the value of their shareholdings increases, so does loyalty- interest and marketing.

5)Customers will also run other busnesses or have influence on them - they may change thier companies to the Viral model. Then one day its a company that your company does business with. The company will now benifit from the interest in lets say a supplier - the more you sell of that product the better your company, your employees and customers do. But of course that doesnt mean that you will sell crap as it benifits no one.

6)Increased shareholder base - This is also a great way to diversify your shareholder base as it also spreads the word of your shares.

7)Increased liquidity - more shareholders also means more trades in the market - this helps to moderate the price fluctuationsn of the stock.