What is customer loyalty?
- Customer loyalty reflects a customer’s willingness to interact with an organization or brand again and again.
- Loyalty is the result of a positive customer experience, customer satisfaction, and the value of the products or services.
- Loyal customers interact with and spend with brands they like more often, they spend more, and they utilize word of mouth to share their positive experience.
- Just because a customer continues to buy from you, does not necessarily mean they are loyal. Being truly loyal means standing by a brand even when a problem arises, and they do not seek out competitors.
Did you know it costs a business about 5-25 times more to acquire a new customer than it does to sell to an existing one?
- Existing customers spend 67% more than new customers.
- Customer loyalty programs truly pay for themselves, as they keep customers coming back again and again.
- In the U.S., 40% of online shopping revenue comes from repeat customers.
- 69% of consumers said their choice of retailer was influenced by the business having a loyalty program
How can you measure customer loyalty?
- Likelihood to recommend your products and services to others
- Likelihood to continue purchasing your products and/or services
- Likelihood of purchasing other products and services you offer
- 83% of consumers said loyalty programs make them more likely to continue doing business with a particular company
- Believing your products and services are preferable to others offered within in the marketplace
- Not actively seeking out competitors to replace you
- Providing your company with opportunities to correct problems and not using these as a basis for compromising the relationship
- Did the consumer change their behavior because of a loyalty program?
- 49% of consumers agreed they spent more at a business after joining their loyalty program
Why do customers join loyalty programs?
- 57.4% of customers join to save money, 37.5% join to receive the rewards.
How to customer loyalty programs add value?
- Use a point system
- Ensure it is easy for the customer to understand the relationship between points and tangible items
- Surprise gifts
- 67% of customers surveyed said surprise gifts are a very important part of loyalty programs
- 76% of consumers believe that loyalty programs are a form of a relationship they have with a brand
Is it time for your business to set up a loyalty program? Without a program in place, your organization could be missing out a large piece in what drives 83% of consumers buying decisions.