There are nearly 30 million small businesses nationally. While these businesses individually may not have the name recognition or marketing power of most big-box stores, they provided over half of the country’s jobs and 54% of sales. With limited budgets, successful small businesses are finding the key to success is developing a loyal customer base.
● Over 60% of small businesses report that more than half of their annual revenue is generated by repeat customers
● Repeat customers, on average, spend 67% more on merchandise than initial first-time shoppers
● Over 50% of small businesses are use social media as their primary marketing tool
● Just 34% of SMBs have a loyalty program
● 54% of those with a loyalty program, do not have it digitally integrated
What This Means To You
The benefits of loyal customers cannot be underestimated. Not only do they spend more money, they are also an extremely powerful marketing tool for your organization. Through Brand Evangelism, a simple post, recommendation or review can effectively create new, future loyal customer. Loyal customers are also more forgiving than first time shoppers and don’t let things that may drive normally drive away a customer bother them.
But many small businesses are not fully taking advantage of this loyal customer base.
The two-thirds that are not involved in loyalty programs are most likely leaving money on the table. The ones that have not taken their loyalty programs digitally are certainly eliminating customers and operating inefficiently. This is especially true of those primarily using social media. The more you invest in a loyalty program, the more money you will save on customer acquisition and the more revenue you will generate. For more information on developing consumers that will extend your message and expand your influence, please contact:
Sources: Center For Media Research; BIA/Kelsey