You probably don’t like math. Don’t worry though, this is not one of those lessons where we use stochastic processes to determine the probability distributions of potential outcomes by allowing for random variation in one or more inputs over time. This random variation being based on fluctuations observed in historical data for a selected period using standard time-series techniques. No sir, this is not one of those lessons. in fact, this will be one of the shortest blog posts you have ever come across. In this piece, I am going to share simple, research-backed statistics to remind you anyway that loyal customers are the back bone of every single business.
1. 5X – 25X The amount spent to acquire a new customer than to retain an existing one.
2. 80 – 20 80% of your business’ revenue comes from just 20% of your customers.
3. 5% Increase in customer loyalty would increase the average profit of a customer by 25% – 100%
4. 87% of shoppers would want a loyalty program.
5. 90% Increase in purchase frequency from highly-engaged customers.
6. 60% More per transaction made by highly-engaged customers.
7. 73% of shoppers say that a loyalty program should demonstrate how loyal a brand is to them.
8. 86% of loyalty program members agree that programs are worth it.