If you're anything like me, Saturday was spent celebrating Groundhog Day by watching the comedy movie of the same name. For those of you who may not be familiar with the Bill Murray classic, it is about a man who becomes trapped in a day-after-day repetition of the same events, occurring (you guessed it) on Groundhog Day. The only way he's able to break the cycle is to change aspects of his behavior that had been holding him back - both professionally and personally.
Does this sound a little familiar? Do you feel like your day-to-day at work is sometimes spent doing the same thing over and over again? Just know your excellent work is paying off without you knowing it! Step back and take a look at your repeat clients and know how you go them? Keeping doing that! But in case you’re still on the fence, we've got some tips on how to focus that energy into turning those repeat moves into repeat customers.
What does your business focus on more, bringing in new customers or keeping current ones? It’s an age-old question. Is customer acquisition more important than customer retention, or is it the other way around?
Both are important for businesses, but there’s mounting statistical evidence that shows customer retention is where it’s at. Plus, research suggests loyalty programs are one of the best ways to engage customers and keep them coming back.
Take a look at the statistics below that support a bigger focus on customer retention.
Surprising stats about the impact of repeat business
1. Sixty-one percent of SMBs report that more than half of their revenue comes from repeat customers, rather than new business
2. On average, loyal customers are worth up to 10x as much as their first purchase. [Marketing Tech Blog]
3. It can cost 5 times more to acquire new customers than it does to keep current ones. [The National Law Review]
4. The average repeat customer spends 67% more in their 31st-36th months of their relationship with a business than in months 0-6. [Bain & Company]
5. A two percent increase in retention has the same effect as decreasing costs by 10 percent. [Leading on the Edge of Chaos]
6. Customers are 77 percent more likely to buy a new product when learning about it from family and friends. [Nielsen]
7. Ninety-two percent of consumers around the world say they trust earned media, such as word-of-mouth or recommendations from friends and family, above all other forms of advertising. [Nielsen]
8. Eighty six percent of consumers say loyalty is primarily driven by likability and 83 percent of consumers say trust. [Rare]
9. Seventy-seven of people are considered brand loyal…of these, 37 percent make repeat purchases and are loyal to a company. [Facebook]
10. Millennials are 1.75x more likely than Boomers to say they’d like to be brand-loyal. [Facebook]
11. Seventy-seven percent of consumers like when brands demonstrate their appreciation. [TD Bank]
12. Seventy-five percent of U.S. companies with loyalty programs generate a positive return on investment. [Loyalty 360]
13. Sixty-four percent of retailers say their loyalty program is their best method of connecting with customers. [SPS Commerce]
Tips to set up a loyalty program
Whether you’re interested in setting up a loyalty program for the first time, or want to upgrade your outdated punch card system, here are a few tips to create a program that customers will love: