BizReport

RSS feed Get our RSS feed

News by Topic




BizReport : Loyalty Marketing : November 29, 2017


Why building customer loyalty is a big job

According to experts, about half of loyalty programs in the US go unused by consumers, even after they've signed up. In some cases, the program may be too difficult, but in others, it's a question of customer latency and getting those shoppers back in the brick-and-mortar or cyber door.

by Kristina Knight

Monetate has looked into the differences between first time buyers and return customers, to help marketers find a better balance in building customer loyalty.

First, we'll look at first time buyers. The buying cycle of a first time buyer looks like this: visit a store, make up to three additional visits within 25 days, complete the purchase. Roughly, first time buyers start a new session at the site every seven days.

Next, we'll look at return customers. The buying cycle of a return customer looks like this after they made the first purchase: make up to three visits to the merchant site over the course of 32 days, beginning a new session every 5.5 days. Then make a second purchase.

The biggest problem for merchants and marketers in creating a loyal, returning customers is that it takes more time for these repeat buyers to find the products they want and then act - or make - the next purchase after making the initial buy.

What can marketers do about simplifying this process?

"In this report, we dug into what makes a truly loyal customer. Knowing that more than half of all loyalty memberships in the U.S. go unused, we honed in on repeat customers to determine common threads in how they behave. What we found is that not only does the level of engagement jump significantly as customers become more loyal, their devotion to the brand does as well. For example, customers returning for their fourth purchase with a brand average a new session every three and a half days, and have a higher average order value over time," said Maribeth Ross, Vice President of Marketing, Monetate. "Because customer loyalty is built over the course of the relationship, not just at the time of the initial purchase, retailers need to work to create meaningful connections with customers to keep them engaged, and to show that it's a two-way relationship. They can do this by leveraging the data they have on each customer to provide the experience that's tailored to their needs."
The full Monetate report can be found here.

Tags: advertising, brand loyalty tips, brand loyalty trends, loyalty marketing, Monetate










Subscribe to BizReport



  • Hi Kristina, It is true that customer loyalty starts from the relationship and that is a kind of engagement or attachment.



http://www.bizreport.com/2017/11/why-building-customer-loyalty-is-a-big-job.html

 

 

Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.