Did you know that it costs FIVE times more to acquire new customers than it does to keep current ones?
When I found this out, I went on a research binge to find out more about loyalty and I uncovered tons of reasons why your small businesses should be focused on creating repeat customers vs new customer acquisition.
So, If loyalty marketing is not currently part of your strategy, I think after this episode you’ll be on the loyalty train like me and have some ideas as to how to make mobile the catalyst and focus on loyalty not new customer acqusition.
Just The Stats Man
This episode I shared a bunch of stats. Here they are.
80% of your company’s future revenue will come from just 20% of your existing customers. Gartner
SMB’s that send loyalty members 2-3 communications per week, see three times more customer visits than businesses that do not send any communications. Spot On
48% of consumers say that the most critical time to gain their loyalty is when they make their first purchase. Clickfox
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% Marketing Metrics
A 5% increase in customer loyalty would increase the average profit per customer by 25% – 100%. TheLoyaltyEffect
61% of SMBs report that more than half of their revenue comes from repeat customers, rather than new business. BIAKelsey
Most corporations lose 50% of customers ever 5 years; 50% of employees in 4 year; and 50% of investors in less than one year. TheLoyaltyEffect
78% of consumers are not even yet loyal to a particular brand. Nielsen
Only 34% of SMB owners have any loyalty program at all, and of those who do, the majority are offline. BIAKelsey
64% of retailers say their loyalty/rewards program is the best way to connect with consumers Forrester
Nearly a third of consumers have subscribed to mobile marketing from brands, but ONLY 35 percent of them aren’t getting relevant messaging. Responsys
Customers are 43% more likely to make a purchase when mobile offers are part of an orchestrated campaign that unfolds over time across multiple channels. Responsys
In this episode you’ll discover:
- Why small businesses need to focus on loyalty not new customer acquisition
- How mobile can be the catalyst for that effort
- The small increases in loyalty that can have big effects on your bottom line
- The upcoming interview series that I’m pumped about
Join the Conversation
My favorite part of doing these podcasts is participating in the conversation they provoke. Each week, I ask one question. This week, it is this:
Question: What are you going to do in your business to wow your customers in the first 30 days to create a more loyal customer base?
Join us in our Private Facebook Group and share your answer. Join us here.
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