Loyalty marketing is a powerful tool for retailers. Studies show that loyal customers are responsible for up to 80% of the revenue for many businesses, even though they represent only 20% of the consumer base (source: Bain & Company). Implementing loyalty strategies can generate significant gains in various ways for retailers who wish to maximize their profits and create a solid relationship with customers.
1. Increased Customer Retention
Loyal customers tend to make repeat purchases, creating a constant source of revenue. According to the Harvard Business Review, increasing customer retention by just 5% can boost profits by up to 95%. Loyalty programs encourage consumer return, reducing sales fluctuations.
2. Reduced Costs for Retailers
It is cheaper to keep an existing customer than to acquire a new one. Data from Invesp indicates that acquiring a new customer can cost up to five times more than retaining an existing one. By fostering customer loyalty, retailers save on acquisition campaigns and improve their profit margins.
3. Increased Average Ticket
Loyal customers usually spend more on each purchase, trusting the quality of the products and responding positively to incentives such as exclusive discounts. A study by Accenture revealed that consumers engaged in loyalty programs spend 12% to 18% more per year compared to other customers.
4. Recommendations and Referrals
Satisfied customers become brand promoters. According to Nielsen, 92% of consumers trust recommendations from friends and family more than any other type of advertising. A well-structured loyalty program increases the likelihood that customers will share their positive experiences.
5. Data for Personalized Strategies
Loyalty programs collect valuable information about customers' purchasing behavior. These data, provided by Smartbis, allow retailers to create personalized campaigns, increasing the effectiveness of actions and consequently sales. According to Salesforce, 72% of consumers expect personalized interactions with brands.
6. Leveraging Seasonal Dates
Holidays represent opportunities to increase sales. Offering special rewards during periods like Christmas, Mother's Day, or Black Friday motivates customers to take advantage of promotions. A loyalty program can make these campaigns even more attractive with exclusive offers for members.
7. Incentives for Points or Cashback
Rewarding customers with cumulative points or cashback is an effective way to stimulate frequent purchases. Research from the Bond Loyalty Report shows that 81% of consumers are more likely to continue shopping at stores that offer rewards programs.
8. Exclusive Offers for Members
With Smartbis you can create promotions exclusively for loyal customers, generating a sense of exclusivity and belonging. This approach increases the perceived value of the program and strengthens the customer's commitment to the brand.