“The probability of selling to an existing customer is 60-70% compared to 5-20% of selling to a new prospect.” These statistics from Frederick Reichheld is often cited when explaining the value of loyalty.
A SABRE report “On Loyalty in Travel” showed that in 2015 American Airlines made 50% of revenue from 13% of passengers demonstrating the value of loyal customers. McKinsey Quarterly (Feb 17), on the other hand, reports only 13% of customers are “Loyalists”.
WordSteam, the Boston based online advertising agency, have written a post entitled “5 Ways to Earn & Build Customer Loyalty” which categories ways of improving customer loyalty.
- Customer Loyalty Tip #1. Know Your Customer and Let Them Know You
In this post, we will go into more depth about how to achieve loyalty and which tools to use.