Customer Loyalty Benchmarks
Last year, we published our eBook examining the 6 most critical customer loyalty benchmarks. Back by popular demand, this year’s edition just arrived hot off the press.
In case you missed last year, our eBook answers six questions for multi-location businesses (plus — new for this year — one extra bonus question), which collectively determine the effectiveness of a restaurant or retailer’s customer engagement strategy. Download now, or see below for a summary of the information.
The methodology behind the customer loyalty benchmarks
Multi-location businesses all face the same inarguable truth: the majority of revenue comes from just a small minority of customers (h/t Pareto).
Grasping the nuances of this truth is why smart marketers looking to hit same-store sales growth goals focus on generating a 6.25% increase in sales from the top quartile of customers, as opposed to a 4% increase in sales from all customers.
It’s also why a 5% increase in retention produces a 100% increase in profits. Plain and simple — a focus on loyal customers provides a substantial lift in sales, because loyal customers spend more money, visit more often, and drive 80-90% of all referrals.
And that’s the perspective we take in the customer loyalty benchmarks eBook. At the highest level, what sales traction can we gain from marketing more effectively to loyal (or previously loyal) customers?
- What percent of sales comes from the top 25%, 50%, and 75% of customers?
- How many of my customers are super loyal (visit more than 1x/month), loyal (visit up to 1x / month), or at-risk (used to be loyal, but 0 recent visits)?
- What percent of customers visit 1x/month? 2x/month? 6x/month?
- What’s the difference in average check at a multi-location business’s best location vs. its worst?
- What days of the week do customers visit?
- How many locations do customers visit?
- Bonus What’s the benefit of 1-to-1 customer engagement?
Using the customer loyalty benchmarks at your own business
One of our passions at Thanx is changing the way businesses think about their own proprietary data and, for that matter, marketing in general (one example, how can we bring more accountability to marketing spending?).
To that end, we’ve written the customer loyalty benchmarks differently than you might see in other benchmark documents. Instead of a list of benchmarks with, “Good luck!” as the subtext, each of the seven customer loyalty benchmarks includes an actionable takeaway that you can implement at your business right now.
We can all agree that, ultimately, knowing that you need to improve on something doesn’t really get you anywhere. We all want to know what we want to improve, and how to make that improvement a reality. So, whether it’s clear steps toward winning back our lapsed customers, or providing the very best customers with a unique experience, we’ve got you covered.