Why is customer loyalty important? On average, loyal customers spend 67% more with you per visit than your average shopper. And their repeat purchases multiply this even further, as they shop with you 90% more frequently [Rosetta]. Did you know, on average your loyal customers typically only account for about 20% of your shoppers, yet they generate around 80% of your total revenue?
Not only do loyal customers make your store more money, they also require less of your marketing budget than acquiring new customers. Acquiring new customers costs approximately 5 to 25 times more than retaining existing customers [HBR]. So, your marketing attention should be directed at turning new customers into loyal customers. This is where you will make the highest return on investment and maintain this return for the long term, making customer loyalty an important part of any retail store’s marketing strategy.
Want to know where to start?
The Retailer's Ultimate Guide to Customer Loyalty covers everything ‘customer loyalty’ that you need to know, from where it fits in your marketing strategy, to how to encourage it, and how to build a winning loyalty program.
By Natasha Mazey, Collect Rewards