Inspiring brand loyalty is the ultimate goal for any business. Experts often apply the Pareto Principle to demonstrate that 80% of sales often come from 20% of consumers. While this may not be completely accurate, customer retention does have its perks.
According to Bain & Company, a 5% increase in customer retention often results in at least a 25% increase in profit. Businesses employ a number of tools to keep valuable consumers around. Among these tools, coupons have emerged as an extremely effective option.
eCoupon and promo codes are usually seen as marketing instruments that attract first-time buyers. But the latest stats gathered by ClothingRIC show they instill loyalty among old consumers as well.
Discounts and coupon codes can be used to make customers feel valued. They help foster a connection between the business and its clientele. Statistics show coupon codes work in retaining customers.
The top three reasons why businesses proactively manage and invest in customer experience are to:
improve customer retention
improve customer satisfaction
increase cross-selling & up-selling
Customer retention statistics published in 2016 show the importance of loyalty programs and coupons.
“In recent years, coupon codes have become a staple of marketing and customer engagement” says Julia Markle, senior editor of ClothingRIC. Some of the recent data suggest their value in retail is undeniable.
Based on a YouGov survey of 3,350 American consumers, instant coupons are third most effective in making the customers feel rewarded after cash backs and birthday gifts. 30 % of consumers feel ‘very rewarded’ while 49% feel ‘little rewarded’ by the gesture.
What does it take to keep a customer around? According to Yotpo’s State of Customer Loyalty report 2018, 55% of shoppers value product quality above everything else while 25% of buyers can be attracted solely through good deals and discounts.
While coupons are often the weapon of choice to realize this goal, marketers utilize different mediums to reach out to potential loyal consumers.
A survey of U.S retail professionals by Emarsys shows which channels are prioritized for inspiring loyalty among customers.
Mobile coupons have become an important part of eCommerce marketing in recent years. Latest stats gathered by
ClothingRIC research team shows businesses who are not investing in this mode of promotion might be missing out.
“Customer retention requires low investment but has a high return.” explains Business Blogger Alex Bill”.
“Turning buyers to customers that prefer your brand over others is a dream of any marketer” he explains.
Loyalty statistics from different studies show just how important frequent buyers are for businesses.
Marketers should take it as welcome news that the young generation of shoppers is extremely loyal.
In a survey published by A. Guttmann, it was found that Millennials (24-39 years) are the most loyal generation as 60% tend to stick to a brand they like.
Meanwhile, Gen Z (8-23 years) are right behind their Millennial counterparts with 55% brand loyalty. Other statistics show that Generation X and Baby Boomer aren’t as brand-savvy or loyal to particular products.
In today’s ultra-competitive environment, loyal customers are vital for any business to survive. However, it’s not just the quality of the product that can inspire devotion from thousands of customers.
On most occasions, consumers are looking to be valued by a brand. Giving exclusive coupons to regular buyers is a way of showing them you appreciate their dedication. Statistics accumulated above demonstrate that it’s possible to create a loyal customer-base through strategic discount marketing.
Cultivating relationships is good for business. Coupons are an important part of this entire process.