Customer Loyalty is Money in your Pocket
In order to grow your business, you have to develop authentic connections with your customers. Loyalty programs are a great way to interact with your regulars, to make them feel appreciated — and give them a reason to keep coming back.
When you consider offering a customer loyalty program, it’s natural to want to make sure it will be worth your investment. Instead of just telling you all the reasons loyalty is crucial for your business, we’ve collected real statistics on customer loyalty for you. Why? We want to help you know your customers and we know that knowing your customers will grow your business.
So what is a customer’s loyalty really worth and what keeps them loyal? Let’s dive in.
The Value of Loyal Customers
You know that your existing customers are valuable, but do you know how valuable?
- Acquiring a new customer is five times costlier than retaining an existing customer. – Forrester
- 80% of a company’s revenue comes from just 20% of its existing customers. – Gartner
- A business’s top 10% of customers spend 3x more than the average customer. The top 1% of customers are spending 5x more than average.- Adobe
- A 5% increase in customer retention correlates with at least a 25% increase in profit. – Bain & Company
- Highly-engaged customers buy 90 percent more often and spend 60 percent more per transaction. – Rosetta Consulting study
- 81% of consumers agree that a loyalty program makes them more likely to continue doing business with brand. – Bond Brand Loyalty
- 65% of a company’s business comes from existing customers. – SmallBizTrends
- A 5% increase in customer loyalty would increase the average profit per customer by 25% – 100%. – TheLoyaltyEffect
What Drives Loyalty for Customers
- A strong emotional connection with a brand is a stronger driver of loyalty than factors like ‘ease’ and ‘effectiveness’. – Forrester Research
- Emotionally-connected customers will spend an annual sum of about $699 with a company, versus regular, satisfied customers who will spend an annual sum of only about $275. – Motista
- The majority (79%) of consumers said brands have to actually demonstrate that they understand and care about them before they are going to consider purchasing. – Wunderman
- 63% of customers say that organizations should make getting to know them better a top priority – Loyalty360
- Unlike last year, when the promise of deals most drove loyalty, customers today find financial rewards (61%) and programs highly tailored to their needs (58%) much more enticing. – Accenture
- 56% Customers said they feel more loyal to brands who “get me” and show a deep understanding of their priorities and preferences. Additionally, 89% are loyal to brands that share their values. – Wunderman
- 93% of businesses with advanced personalization strategies increased their revenue last year – Monetate
- 56% of consumers say the overall enjoyment of the purchase experience is important in their decision to buy a product or service – iperceptions
- 63% of consumers expect personalization as a standard of service and believe they are recognized as an individual when sent special offers – RedPoint Global
- Four out of five top drivers of member satisfaction and engagement are related to the experience – Bond
These days, customers are looking for more than just a points on a card; they’re looking for a personalized relationship with your business. Integrating a loyalty program with your POS system is a key step towards providing highly personalized service and above-average customer experiences.
Nōwn is the customer recognition POS, with a customer app mobile ordering and loyalty program, that helps you truly know your customers. To learn more about how to implement a loyalty program for your business, contact us today.