Obviously we're big advocates of loyalty, and its importance as part of business strategy. We believe that by encouraging loyalty among current customers, you can not only keep those people coming back, but also encourage new customers using word-of-mouth promotion and the feel-good factor.
But that's us. That's what we believe - and why we've created LoyalBlocks. What should you believe? Well, let's get down to the nitty-gritty facts, and see what they show us. Because the facts are on our side - and we'll show you why!
There are varying statistics on this one, but they all spell out the same message - it's way cheaper to keep an existing customer than it is to acquire a new one. Numbers range from five times more to seven times more, but everyone agrees that it's definitely cheaper to stick with what you've got.
In addition, you're more likely to get an existing customer to actually purchase. The probability of selling to an existing customer is 60-70%, compared to just 5-20% chance of selling to new customers.
Long-term customers spend more
Research shows that the longer someone has been a customer with you, the more likely they are to spend higher amounts of money. In apparel retail, for example, repeat customers' spending typically more than doubles in months 24-30 of their relationship with the store as compared to the first six months.
So, it's cheaper to keep an existing customer plus they're more likely to spend more with you the longer they've been shopping with you. That's a pretty big argument for loyalty. So why not just smile nicely at all your customers and learn their names? Well, we know that sometimes that's not possible what with the number of people coming through the door and staff shift work. And this is where the loyalty programs come in...
Zendesk did an interesting survey about consumers' attitude towards loyalty and loyalty programs. While they found that peoples primary concern is customer service, they also discovered that loyalty programs and offers can go a long way towards enticing people to return to a store. Fifty-four percent of respondents said that they would consider increasing the amount of business they do with a company for loyalty rewards; with 46% saying they have previously done just that.
A statistic that I personally like very much is this: 48% of respondents said that the right time for a company to gain customer loyalty is during the first purchase or service in a store. This is a great argument for our Welcome Token - which lets stores reward first time customers easily and quickly.
What are you waiting for?!
So the stats have our backs. Loyalty works, and works well. Loyalty programs certainly aren't the only way to increase repeat visits, but they definitely work and are one of the easiest, fastest, and (even if we say so ourselves) most fun ways to welcome people back to your store.
If you're not a LoyalBlocks customer and would be interested in signing up, you can do that here.