By Chris Luo, FiveStars
Customer loyalty marketing is not typically what owners of small and medium businesses say is their primary marketing focus. More typically you see that they focus on activities around customer acquisition. As a result, you see money pouring into things like print and TV advertising or even Google or Facebook advertising and daily deals.
However, data that FiveStars has uncovered from the store visit behavior of more than 1 million customers and the results of FiveStars loyalty programs deployed by more than 2,000 small and medium businesses reveal that overemphasizing customer acquisition could be a mistake and could leave revenue on the table.
Two important insights drive the importance of customer loyalty marketing:
- 20 percent of customers drive 72 percent of visits and 80 percent of revenue.
- Loyalty incentives can lift customer visits on average by 12 to 44 percent.
Learn more surprising facts about customer loyalty in the infographic below.