Just How Important is Brand Loyalty?
To show how big of an impact this consumer group has, the Pareto Principle, as described by the Forbes Agency Council, states that 80% of your company’s future revenue will come from 20% of your current customer base, making it imperative that you focus on creating loyal, repeat customers that will continue to frequent your business.
According to the Loyalty Lion blog, “after the original purchase, the likelihood of a customer
making a second purchase is close to 30%, and after they make a second purchase, the likelihood of a third jumps past 50%.” This statistic shows how quintessential your initial sale is to the future of your relationship with that customer. On average, a loyal customer is worth ten times the value of their first purchase. Customer retention also guarantees you will save money. Harvard Business Review states that customer acquisition is anywhere from 5 to 25 times more expensive than it is to keep a current one, proving even further the importance of keeping customers gratified and satisfied.