"Yesterday, I overheard one of my colleagues say about his family, "We're Subway people; we go there all the time." That statement shows incredible customer loyalty. The most loyal customers feel complete identification with a brand.
Brand loyalty shows up everywhere. "I only drink Diet Coke, buy Apple products, drive Subaru cars." People also develop brand loyalty for local businesses on and off line. Creating customer loyalty to pull in customers for continued business can decrease cost and increase income.
Acquiring new customers can cost as much as 5x more than satisfying and retaining current customers (Murphy & Murphy).
A 2% increase in customer retention has the same effect as cutting costs by 10% (Murphy & Murphy).
A 5% increase in retention yields profit increases of 25-100% (Bain and Company).
Repeat customers spend, on average, 67% more than new ones (Bain and Company). Read more
No comments:
Post a Comment