The below infographic reveals the importance of a loyal customer and highlights the top 3 reasons of investing in a loyalty rewards program.
Any investment in improving the percentage of repeat customers or increasing the size of each repeat order delivers an exponential Return on Investment (ROI).
After one purchase, a customer has a 27% change of making the next purchase. However, you have to make an effort to get to the customer back to visit your store. Similarly, after the customer makes a second and third purchase they have a 54% chance of making another purchase! For most businesses, a 3-peat customer becomes a loyal customer with a life time value of 10x compared to their initial purchase.
A good loyalty rewards program increases the percentage of your repeat customers and the size of each repeat order. If implemented correctly, it should easily generate a high ROI and should have the greatest impact on your bottom line.
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