We all agree that customer retention is the holy grail for marketers in 2020. Why? Because it plays a critical role in profitability, growth, and brand perception. While every business needs to acquire new customers, once you have them, you must focus your marketing efforts toward retaining as many of them as possible. A customer retention-focused strategy is one of the most effective marketing strategies for your business. If loyal customers become brand ambassadors, they’ll refer more and hence CAC (Customer acquisition cost) will be lower if you have a greater number of loyal and satisfied customers.
Brand loyalty is more important than ever and can make a massive impact on your business. Here are important customer retention statistics in 2020 that you must be abreast with:
Loyal customers don’t just spend more, they also refer more which leads to reduced costs. Repeat customer statistics are key to business success and growth. Staying in business with a customer for a long time is far more profitable than onboarding a new customer. According to InMoment, 77% of customers have strong relationships with specific brands for as long as 10 years. Introducing loyalty programs is a great way to drive customer retention. In the long run, companies that offer a meaningful loyalty program also experience improved customer acquisition. Brand Loyalty states in their survey that 70% of customers will recommend brands to their loved ones if they offer loyalty programs that add value.
The statistics show the many different ways in which working to retain customers is a good investment. Repeat customers spend more money and require less costly advertising. How best to appeal to existing customers to keep their loyalty depends a lot on your target demographic, especially the customers’ ages.
Annex Cloud can help you build a customer retention strategy that is unique to your company with our highly configurable customer loyalty software. Whether your customers like discounts or points, games or surprises, we have something for everyone. Contact us to discuss how to build the perfect loyalty strategy for your company.