Loyal Customers Are Key
Spending more money on building customer loyalty is more critical than spending money on marketing. That is not speculation, it is proven fact! Companies who focus their attention on current customers, like business giant Amazon, will be the ones who succeed in the long run. Take a look at the following ten statistics if you have any doubts:
(1) Losing just 5% of your loyal customers could cost your business anywhere from 25-95% of your profits.
(2) 80% of your company’s future revenue will come from just 20% of your existing customer base.
(3) One in three customers will pay more for a better experience.
(4) 32% of customers claim they would cease doing business with a company they loved after just one bad experience.
(5) About 50% of loyal customers have left a company for a competitor who was able to stay more relevant and better satisfy their needs.
(6) 81% of customers make purchasing decisions based on how much they trust a company
(7) For most industries, the average customer retention rate is below 20%
(8) Loyal customers spend 67% more with a business than new ones.
(9) Costs 5x more to get a new customer than to keep a loyal one.
(10) 80% of companies believe they provide superior customer service, however, only 8% of their customers agree with them
According to a recent Gartner Research study, companies spend an average of 12% of their annual revenue on marketing. For more like 1% of your profits, you can engage a mystery shopping company that will help you listen to what patrons who visit your establishments actually experience. You can use that information to create experiences that will build your loyal customer base. This will increase your profits and give you the satisfaction of knowing all of your customers, new and old, will want to come back again.