Conversion and acquisition are key metrics to any lucrative business, but mastering the art of retention is the ultimate indicator of success. Why does retention matter you ask? 80% of future revenue comes from just 20% of existing customers! While it certainly can be a challenge, it is possible to transform customers into brand advocates in 3 steps with the help of customer loyalty programs.
Step 1: Understand how loyalty programs affect lifetime value
The probability of selling to an existing customer is 60-70%, while the probability of selling to a new prospect is 5-20%.
Step 2: Determine what is important to you and to your shoppers
Rewarding repeat shoppers with points increases annual visits by up to 20%.
Step 3: Segment, personalize, and remarket
62% of shoppers don’t think that brands they’re most loyal to are doing enough to reward them.
Research confirms that customers are more likely to remain loyal to a company if rewards are offered. In fact, 75% of consumers would switch brands if offered real-time discounts and promotions while shopping on a site.
To learn more about how customer loyalty programs increase retention and build lifetime brand advocates, Check out the Infographic.