by When someone asks me what I do, I always reply with “I do research to drive revenue”. Why? Because quite honestly everything we do is about the bottom line, wouldn’t you agree?
We use research to drive loyalty and loyalty drives revenue.
Customer loyalty is important for many reasons, these are some of the major ones. Don’t just take my word for it click on the links below to read what other highly known specialists have to say:
- Repeat customers typically spend more than new customers. Because they already trust your business and its products or services, existing customers tend to spend more money than new customers. In fact, the amount they spend typically increases with the duration of doing business with your brand.
- Loyal customers yield higher conversion rates. Existing customers have an average conversion rate of around 60% to 70%, while new customers have a conversion rate of 5% to 20%. In other words, you get more value from your loyal customers. Reference Smile.io
- Customer loyalty boosts profits. The higher the percentage of your overall customer base that are loyal, the better your profits will be. In fact, just a 5% increase of customer retention could increase business increase business profits by 25% to 95%.Reference SailThru
- Customer retainment is cheaper than customer recruitment. While recruiting new customers is important, it can be expensive – around five times more expensive than retaining a loyal customer. Simply retaining loyal customers is much more cost-effective, as they bring higher profits at a lower cost. Reference Business News Daily
- Loyal customers shop regularly. Because they’ve already had positive experiences with your business, repeat customers tend to shop much more frequently than new customers. This is especially true around the holidays, when people are purchasing gifts, dinning out and spending more than they typically would during the rest of the year.
- Customer loyalty helps you plan ahead. When you have loyal customers, you can make better anticipatory decisions and effectively plan and implement your next business strategies.
If you’ve enjoyed this update, feel free to share with someone else you know will find The Customer Loyalty Conversation helpful.
As always, if you would like to have a chat with me about how ‘Customer Loyalty Drives Business Growth’ contact me I look forward to hearing from you.
Craig