Thanx, which helps merchants identify, engage, and retain their best customers, today published "6 Critical Stats for Customer Loyalty," a 2014 retail and restaurant study highlighting the major customer retention challenges U.S. businesses face amidst an increasingly indiscriminate population. Analyzing more than 18 million multi-location merchant transactions, Thanx found that revenue was highly-concentrated among a small number of customers, with the top 25% contributing 64% of revenue - "top-heaviness" even more pronounced in retail.
This revenue density aligns with the 80/20 rule and has broader implications for retailers and restaurants. According to the study, 70% of previously loyal customers are "at-risk" and unlikely to return. This compares to the 3-4% "super loyal" who return monthly at minimum.
"Modern customers are promiscuous. With countless competing options, they don't mind spreading the love," said Zach Goldstein, CEO and founder of Thanx. "Most brands write them off by focusing on customer acquisition, but customer retention is 7X more cost effective - they're already familiar with you."
The inputs for "6 Critical Stats for Customer Loyalty" are a random sampling from merchants to whom Thanx has delivered loyalty and insights. The 2014 report spans 10.3M customers, 18.3M transactions, 54 businesses, and 877 locations.
This stark metric is further evidence that anything you can do to ensure a customer leaves happy will increase their chance of returning. TalkToTheManager helps in that regard. By receiving and responding immediately to customer feedback, you can improve your retention rate, as well as avoid negative reviews that could prevent another potential customer from visiting you for the first time. Our customers love it and your customers will love it.
Here's the original press release.