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Why is customer retention so important?

Check out these interesting facts about loyalty programs and customer satisfaction to discover how rewards programs can help maximize your client retention:


Customer Satisfaction Stats

96% of unhappy customers don’t complain, however 91% of those will simply leave and never come back – Source: 1st Financial Training services

A dissatisfied customer will tell between 9-15 people about their experience. Around 13% of dissatisfied customers tell more than 20 people. – Source: White House Office of Consumer Affairs

Happy customers who get their issue resolved tell about 4-6 people about their experience. – Source: White House Office of Consumer Affairs


Loyalty Program Stats

A 2% increase in customer retention has the same effect as decreasing costs by 10% – Source: Leading on the Edge of Chaos, Emmet Murphy & Mark Murphy

Over 60% of U.S. households said that loyalty card programs were important in their shopping decisions – Source: AC Nielsen

Loyalty memberships in the U.S. exceeds 2 billion, netting out to more than 18 memberships per household. That’s up 16% from the almost 1.8 billon memberships counted in 2008. In Canada, we counted 120.7 million members, up 3.9% from the 2009 COLLOQUY -Loyalty Census. – Source: Colloquy 2011 Census Talk White Paper

Loyal customers buy more, make referrals (saving you acquisition and sales costs) are easier, and quicker to deal with. Many companies lose 20% or more of their new customers within twelve months of getting them – Source: JoAnna Brandi, known as "The Customer Care Lady", is the Founder of JoAnna Brandi & Company, Inc.

Customer spending is 46% higher with companies that offer reward card programs. 28% of customers reported that they are “Extremely Likely” to increase their visits to a business if they have a loyalty reward card for them - Source: Total Research Corp & Custom Marketing Corp’s Loyalty Monitor Study

Businesses can increase revenues 25%-100% by retaining just 5% of their customer base. – Source: Frederick Reichheld: Author of "The Loyalty Effect".

Satisfying and retaining current customers is three to 10 times cheaper than acquiring new customers – Source: McKinsey

Consumer spending is 46% higher with companies that offer loyalty programs – Source: 1999 Loyalty Monitor study by Total Research Corp. and Carlson Marketing Group

Seventy percent of persons from higher-income households ($125,000 +) are more loyal to companies that offer rewards programs - Source: Maritz

80% of sales come from 20% of your customers – Source: Laura Lake, about.com

40% of shoppers using a retailer's card bought items at full price, while only 16% of shoppers using other payment methods bought at full price - National Retail Federation, J.C. Williams

79 percent of consumers surveyed say they are very, or pretty, satisfied with their loyalty and rewards program experiences. But 70 percent want to see more discounts and savings, and 52 percent more compelling personal deals and offers as reward for steering their business to loyalty program operators. In a definitive call for personalization, 58 percent say they want more compelling personal benefits and services, as well as more relevant offers or individualized deals. – Source: CMO Council


Gift Card Stats

82% of small to mid-sized businesses indicated that offering gift certificates or gift cards has had a positive impact on their bottom line. The majority report an increase in their sales. - Source: Small Business Marketing

Studies show that people spend more on gift cards than on gift certificates. The average card denomination is $50 — twice the amount people would spend on the average gift certificate. – Source: cbc.ca

51% of consumers who receive gift cards spend more than the card’s initial value National Retail Federation – Source: National Retail Federation

More than 50% of Gift Card customers spend more than the initial face value loaded on the Gift Card. – Source: National Retail Federation, Consumer Intentions and Actions Survey, January 2007. Conducted by BIGresearch.

Studies show that people spend more on gift cards than on gift certificates – Source cbc.ca

Gift cards are the most profitable square foot of selling space at many retail sites. "Eight out of ten people would include gift cards among their holiday shopping purchases - National Retail Federation, J.C. Williams