Customer Loyalty 101
What is a customer loyalty program? Why should you use one. What are the benefits. How do you implement one correctly. When do you know its time to implement one.
B2B Customer Experience Priorities In An Economic Downturn: Key Customer Usability Initiatives In A Soft Economy
- It costs 5 times more to acquire new customers than it does to keep current ones
- 2 percent increase in customer retention has the same effect on profits as cutting costs by 10 percent
- Repeat customers are rewarded and businesses increase sales. It’s a basic but powerful strategy.
- Reveals that for early adopters who already have a customer loyalty program in placed, 64 percent of them report it’s been effective, meaning it makes more money than costs to maintain it.
- repeat customer spends 67 percent more on a given purchase than a new customer does
- Companies spend more than $2 billion on loyalty programs a year
- Statistics show the average American household belongs to about 14 different rewards programs, even if they’re only active in six
- Over half 54% of loyal customers said they do not consider other competing products & admitted to purchasing more from a company that they are loyal to
- 69% of customers show their loyalty by buying more
- 54% of customers said they would consider increasing the amount of business they would do with a company for loyalty rewards
- 61% of marketers believe that loyalty program participants are their most profitable customers
- Good customer service 34% was the single aspect most likely to encourage people to spend more, followed by personalized rewards they felt were relevant to them (30%)
- 61% of retailers cite customer retention as their greatest obstacle in 2013, up from 51% in 2012
- 50.4% of companies cannot identify their most loyal customers
- 55% of organizations with employee engagement rates of more than 50% that have customer retention rates of more than 80%