It’s probably needless to say that loyal customers are the biggest assets of any business. Studies show that only a 5% increase in your loyal customer base can result in increases of revenue and profits up to 85% or more. Take a look at some more customer loyalty stats that might surprise you: The cost of bringing a new customer up to the same level of profitability as an old one is up to 16x more. (SocialAnnex) Existing customers are 50% more likely to try new products, and spend 31% more than new customers. (The Nielsen Survey) 68% of Millennials say they wouldn’t be loyal to a brand if it doesn’t have a good loyalty program. (The Bond Loyalty Report) 62% of Millennials report that brand engagement is more likely to make them a loyal customer. (USC Dornsife) 62% of consumers don’t believe that the brands they’re most loyal to are doing enough to reward them. (ClickFox) So how much do you care about your loyal customers? And what’s even more important – do your customers really know how much you appreciate them?
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Why Customer Loyalty Really Matters and How to Improve It (Infographic)
According to the 80/20 rule (the Pareto Principle), 80% of business comes from 20% of customers – in other words, a small group of your customers is generating the bulk of your revenue. That’s why acknowledging, respecting and rewarding these 20% is imperative. After all, loyal customers are the biggest assets of any business. In fact, customer loyalty is the key determinant of an organization’s success, yet many companies still keep focusing more on sales and customer acquisition. Getting new customers is great and necessary, but keeping them coming back on a regular basis is gold.
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