Some customers are fair weather friends. These intermittent visitors only drop by when the time is right. Their purchases can be small and unpredictable. The patronage of such customers just isn’t worth as much to your average retail brick and mortar store. And it costs five times more to acquire them. (Research: National Law Review)
But there’s a different type of retail customer whose visits are worth gold. Truly loyal retail customers are money-generating metronomes — their patronage can be counted on, day after day, season after season. When loyal customers keep coming back to your business, it means that less time and money is needed to attract new customers. It also means higher sales, as their purchases are actually worth more than a purchase from a one-time buyer. In fact, highly-engaged customers spend 60% more per transaction and buy 90% more often than less engaged customers. (Research: Customer Loyalty in the Time of COVID)
Loyal customers are vital to a healthy business. This is why retailers large and small offer loyalty programs to encourage repeat business.
Download our white paper about 5 popular types of loyalty programs and learn which type of program is the best fit for your business.