Customer loyalty and retention go hand in hand. When you are loyal to your customers they will be loyal right back. Industry research shows that retailers are better suited to invest in retaining their customer base than spending to generate new customers. Existing customers drive a higher share of revenue, have higher conversion rates, and continue to stay loyal to your brand during tough economic times.
Current stats on consumer loyalty show:
- 40 percent of retail revenue comes from returning or repeat purchasers, who represent only 8 percent of all visitors.
- 79 percent of marketing executives cite improving customer retention and loyalty as the most important business issue to address
- An increase of just 1 percent of shoppers to returning/loyal purchasers can generate as much as $39 million in additional revenue per retailer.
A properly managed loyalty program can be a critical element in enhancing customer retention. But offering a loyalty program is simply not enough. While marketers talk about the importance of customer engagement, they to remain engaged themselves with the program. Innovative and exciting new rewards need to be offered while continuing to measure program success to make sure objectives are being met.
Loyalty programs are a critical element in enhancing customer retention, so are you properly managing your program? Download our Loyalty and Retention Closely Intertwined whitepaper now and make sure you are on track to increase revenue while keeping your loyal customers delighted.