The value of retaining a client
It costs 500% more to acquire a new client than to keep a current one.
The cost of taking a new client to the same level of consumption of a current client is 16 times higher.
82% of companies agree that it’s cheaper to retain a current client than it is to acquire a new one.
Reduce his rotation percentage on a 5% can increase profitability 25 to 125%.
In average, loyal clients are worth even 10% more than the value of their first purchase.
A frequent client spends 67% more between the 31st and 35th months of his relation with the business than between the months from 0 to 6th.
1% of the users of a web page make sometimes even 40% of the total income of a business.
How do customers perceive a loyalty program?
87% of customers wish for a fidelity or loyalty program.
62% of customers think that most brands to which they are loyal don’t reward them properly.
62% of millennials or those from the millennium generation say they won’t be loyal to a brand that doesn’t reward them properly.
68% of customers say their loyalty to the business has increased throughout the years motivated by the fidelity program they have.
48% of buyers say that the most critical moment for a company to win the customer’s loyalty is when they make their first purchase of a product or service.
54% of consumers will increase their purchases in a business for their fidelity program, and 46% said they already had.
3% of consumers say their fidelity program must show how loyal a brand is to them.
The number of clients affiliated to a fidelity program has increased over 27% between 2012 and 2014.
There are over 2.6 billion members of fidelity programs.
At least 58% of consumers buy from the companies which they belong to their fidelity programs.
34% of consumers say they wouldn’t be loyal to a business if it wasn’t for their fidelity program.
76% of consumers believe the loyalty program is part of their relation with the business.
66% of millennials or those from the millennium generation answer to loyalty or discount cards, 65% answer to discounts, and 50% answer to notices.
83% of the members of the loyalty programs say that the reward programs motivate them to make more deals with certain brands or establishments.
86% of the members of fidelity programs agree that certain programs are worth the effort.
The two main reasons that motivate a consumer to subscribe to a loyalty program are: the ability to obtain points of sale (56%) and the possibility to obtain discounts in their purchases (55%).
The two main reasons why a customer stops participating in loyalty program are: the program doesn’t offer attractive or interesting rewards (56%) or because it’s very hard to obtain points (54%)
The two most important reasons why consumers participate in a loyalty program are: it’s easy to understand, (81%) and because the rewards and offers are very attractive (75%).
46% of consumers change the brands where they buy to maximize the points and benefits received.
67% of adults are willing to give their businesses part of their personal information as long as they receive better products and services.
Over 50% of consumers are willing to pay a higher price for favorable experiences and services, and 77% would be more loyal to businesses that supply their three better service expectations.
89% of millennials or those from the millennial generation say they would be more loyal to the businesses that provide the benefits they want the most. 23. 66% of consumers would be willing to spend 13% more on a business that offers excellent service above the lower prices.
57% of clients with mobiles say that fidelity programs and points are their favorite applications in their wallets or cell phones, and the discounts and offers their main reasons.
91% of consumers of “back to school” would move to other businesses if they had a fidelity program. 26. 24% of consumers for new providers search after 2 years even when they have obtained a good experience in their current business.
50% of customers use a business more frequently after they’ve had a good experience.
87% of consumers think that businesses should try harder to provide a good shopping experience.
85% of the members of a fidelity program don’t hear more from their business after they have affiliated.
41% of clients of a fidelity program say they buy more from a business that communicates with them through e-mails customized with information of their preferences and past behaviors.
63% of millennials are loyal to the same brands as their parents.
How do marketing managers see the loyalty programs?
75% of companies with fidelity programs make rapid returns of their investments.
68% of businesses give less than 20% of their marketing budgets for fidelity programs, although 58% of companies say that 58% of their sales or incomes are generated through their loyalty programs.
66% of marketing executives think that fidelity programs should be a way for their clients to show their loyalty towards their businesses.
When Starbucks introduced its reward card in 2013, they saw their profitability increase a 26% and their incomes11%.
Design of the loyalty program
97% of fidelity programs are based on transactional rewards; this means points, discounts, or gifts in their purchases.
77% of transactional programs fail in the first two years of their implementation.
Only 11% of fidelity programs offer customized rewards.
Only a quarter of the loyalty programs reward their clients for some kind of affiliation.
36% of millennials or those from the millennial generation say they share digital content to receive coupons, discounts or promotions.
Only 9% of businesses offer reward refunds through all their channels.
Frequency of interaction promotes loyalty. 87% of clients are loyal to their brand when they buy daily, 64% are loyal when they buy weekly, 49% are loyal when they buy monthly, and only 33% are loyal when they buy twice a year.
Return of investment on loyalty programs.
Loyalty programs increase income 5 to 10%.
Members of the loyalty program spend an average 5 to 20% more than non-members.
Members of a fidelity program buy 5 to 20% more frequently than non-members.
A trader who starts a point program and then adds other reward programs, sees an increase of up to 370,5% of income in a year.
Another business that started a traditional fidelity program switched to a program that added a social affiliation program that increased its incomes over 300.6% in two months.