Most enterprises focus the bulk of their resources on acquiring new customers but faced with skyrocketing acquisition costs are looking for more cost-effective ways to gain new customers. Retention and loyalty are typically secondary and left until later in the customer lifecycle.
Increasing retention by 5% can drive up to a 70% increase in profits.
Source: Bain & Company
Have you stopped to consider what percentage of your customers are one-time transactions? What if just five or ten percent of them came back for a second or third purchase? Pushing the focus on retention to just your repeat customers is leaving massive revenue on the table. Successful brands integrate loyalty in everything they do because they know loyalty begins with the first customer interaction.
They Cost Less
Boston Consulting Group reports it costs $7 to market to existing customers vs. $34 per new customer.
They Spend More
Forbes reports repeat customers can increase sales by 47%, and loyalty members spend up to 18% more.
They Convert More Often
According to Marketing Metrics, repeat customers have a 60 – 70% chance of converting vs. 5 – 20% for new customers.
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First-party data is essential to understanding customer preferences and behaviors. Do you have unified 360-degree profiles that all customer-focused teams can act on in real time? Loyalty pushes first-party data across your tech stack to deliver insights and inform individualized experiences across the customer journey.Learn how to turn one-time customers into lifelong advocates >
Enterprises across all industries are facing supply chain issues that can interrupt and delay delivery, and force price increases, at a time when customers are more demanding than ever. Loyalty’s mutual value exchange builds strong customer bonds that help protect the retention of your best customers.Learn how to sustain growth by leveraging your best customers >