Customer Loyalty: Did You Know…

Every business owner and CEO (and frankly, every person in your company from top to bottom) knows how important customer loyalty is to your company. Or do they?

The AMA Phoenix recently had a guest speaker, Michelle Culp from BI WORLDWIDE, who spoke about customer loyalty and driving engagement through gamification. It was a very informative presentation and I am always amazed at some of the statistics—everything from cost of new customers to the numbers of people communicating via social media.

What does your company do to retain and thank loyal customer?

I thought I would share some of the stats and some key information points of the presentation. These stats always make me think—how can a company increase business by improving some of these numbers and put effort into keeping their current customers, especially loyal ones?

Only 18% of customers say they feel an emotional connection to a brand

4X more likely to shop with a brand if they have an emotional connection

Imagine the sales your company could be doing if that 18% was, say, 30%. How much would that translate into dollars?

 

900 million people are active on Facebook

2.9 Billion hours on YouTube per month

175 million tweets each day

Looking at these numbers, should it be so difficult to engage your customers? Social media is also not the only available to channel to do so.

88% of customers leave because they don’t believe the company cares about them

5X more expensive to acquire new customers than to retain

23% of consumers surveyed feel “very loyal” to their service providers

20-40% of consumers are lost annually

26% Improvement in gross margin in companies who optimize engagement

85% Increase to the bottom line by retaining just 5% more customers

I look at these two stats together and I think about what this really means—
20-40% of consumers are lost annually
85% Increase to the bottom line by retaining just 5% more customers

It begs the question—what would this mean in dollars for your business to improve that 20-40% number to, say, 10-20%?

These numbers are worth studying and it’s time to figure out how to keep your loyal customers, if you aren’t already doing so.  Make customer loyalty an important part of your marketing plan.

Please contact Anna Brice at Pinnacle Peak Marketing, Scottsdale AZ about Marketing for Small/Medium Business.

Email: anna@pinnaclepeakmarketing.com
Phone: 480-661-0292
Website: http://pinnaclepeakmarketing.com

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About Anna Brice, Pinnacle Peak Marketing

I am an Independent Marketing Services Provider and Principal of Pinnacle Peak Marketing. Pinnacle Peak Marketing provides companies, small and large, the opportunity to utilize a reliable outsource marketing resource and take advantage of the flexibility of the full menu of marketing services we provide. Clients can pick and choose the precise services they require and only contract for those specific services. This is what I refer to as On-Demand Marketing Services. Our work includes long and short-term projects or can be done on an hourly, retainer or project-by-project basis. I am a marketing professional with 13 years experience in the travel industry and 11 years in marketing. My past experience includes marketing management roles at Sony Electronics, Fujifilm and GoDaddy.com. I have worked in every level of marketing and the experience at each level has served me well. I continue to learn and in marketing today, the changes are so swift and dramatic, that one must continue to learn in order to survive and thrive. I work with a group of professionals and we work together and separately and are able to provide a wealth of knowledge and resources as a combined group. My husband, Ed and I also have two vacation rentals in Scottsdale and one vacation rental home in Edgartown- Katama in Martha’s Vineyard. We rent these properties through our company, BREO Vacation Rentals (www.breovacationrentals.com). It is great fun and we have been very lucky with great renters. We have had only one bad experience, so we really can’t complain. We have been very lucky to get many repeat renters (all of our properties now have had repeat renters), so we feel like we must be doing something right. We do try hard, that’s for sure. I am never far from marketing, between Pinnacle Peak Marketing and BREO Vacation Rentals. I enjoy it, love it and have a goal to help companies grow; connect those companies with their customers and their customers to them.
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