While all customers tend to spend more on busy holiday seasons, loyal customers tend to perform way better.Д®ven though 82% of U.S.

Repeat customers spend more during the holidays.

Moreover, their likelihood of making future purchases increases as they make more transactions. Given their good experience with a brand, repeat customers have higher chances of returning. Marketing teams can identify committed customers who can be relied upon hence making it easier to make anticipatory decisions based on their budget. Customer loyalty enables businesses to predict growth more effectively, thus helping in financial planning.

Customer loyalty helps in effective planning.

Studies show that getting a first-time customer is 5X more expensive than retaining a loyal one. It is cheaper to keep an existing customer than to bring a new one on board.

Retaining an existing customer is cheaper than acquiring a new one.

Business profits go up by 25% to 95% when customer retention rates are increased by only 5%. To enjoy better profits, brands need to foster customer loyalty. The average conversion rate of a loyal customer is 60% to 70%, while that of a new one is 5% to 20% Existing customers have way higher conversion rates than new ones.

Loyal customers produce higher conversion rates.

They have a way higher average order value that increases with the duration they have been doing business with a brand. Repeat customers spend more than first-time customers.That said, here some reasons why customer loyalty is essential: However, customers who have already shopped from a particular store are more accessible to sell to because they know what to expect. As such, the brand needs a comprehensive marketing funnel to get them to purchase. First-time customers are harder to convince because they do not have any experience with the services or goods offered by a business. Regardless ofВ the size of a company, customer loyalty is essential. Repeat customers spend more during the holidays.Customer loyalty helps in effective planning.Retaining an existing customer is cheaper than acquiring a new one.Loyal customers produce higher conversion rates.Email marketers build relationships by sending relevant campaigns that increase retention and build customer loyalty, thereby yielding quicker growth than other marketing strategies.

With email marketing, brands can boost relationships with their existing customers, in turn, improving loyalty. as long as there is a need, they will keep purchasing from a business.ДЄll businesses should strive to improve customer loyalty to keep clients purchasing and make them promote their brand to new audiences.they offer feedback on how a brand can improve its products or services.they are more understanding when issues occur and trust a business to fix them.they are open to other goods or services provided by a particular business.they are not open to pitches from competing companies.they are more willing to refer a brand to their family and friends.they are not actively searching for different suppliers.Other characteristics of a loyal customer include the following: They are willing to pay more as long as they get the same quality product or service they are familiar with and love. When a customer is loyal to a specific brand, they are not easily influenced by availability or pricing. It is the result of customer satisfaction, positive customer experiences, and the overall value of the goods or services a customer receives from a business. Customer loyalty is a measure of a customerвЂ™s likeliness to do repeat business with a company or brand.

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