Loyalty marketing is an approach to marketing that is focused on growing and retaining existing customers through incentives or rewards. Take a look at your keyring. Chances are you have some loyalty membership cards next to your car keys. Whether you join loyalty programs to earn discounts and free products or you just like the emails with additional savings and alerts, you are one of millions who take advantage of loyalty marketing campaigns.
Last year, FiveStars performed an analysis of 14 million store visits from more than one million customers, as well as the results of loyalty programs from over 2,000 businesses. The study found that loyal customers (those who visited stores at least 10 times) account for about 20% of the company’s customers.
Don’t scoff at this deceptively low percentage… That 20% drives 80% of a business’s total revenue and 72% of total visits to a business.
According to FiveStars, “depending on the vertical, loyal customers can account for up to 84% of total visits.” Best of all, loyal customers spend 10 times more than new ones.
Have you deployed or a joined a loyalty marketing campaign recently? Whether you are a loyalty marketing specialist or an interested consumer, I encourage you to join our TweetChat on Wednesday, Jan. 29 at 2:00pm EST. Feel free to share your thoughts and data on loyalty marketing. You can join our conversation at #ROImktg.
TweetChat: Lead scoring best practices
Date: Wednesday, Jan. 29
Time: 2:00pm EST
I look forward to tweeting with you soon!