Repeat customers are the lifeblood of many brands, especially retailers.
Building a stable base of repeat customers should be the top priority of all businesses.
Contrary to popular belief, lost buyers cannot be easily replaced by an influx of new customers. Studies have shown that the cost of acquiring new customers is up to 25 times more than the cost of keeping your already loyal customers happy.
Not to forget, a small increase in customer retention can have a significant impact on the bottom line. According to a Bain & Company study, a 5% increase in customer retention could increase profitability up to 25% on average.
You should therefore consider a loyalty program as part of your brand’s marketing strategy. It is a cost-of-sales that guarantees to bring sustainable growth for your business in the long term. Of course, Kaddra is equipped with all the fundamental tools to help you build a successful loyalty program.
Curious about the commercial rules in calculating the costs of your brand’s loyalty points?
Check out this guide!