This infographic illustrates the value of returning customers by summing-up key takeaways from recent articles on the subject. It highlights why investing in customer retention should be of equal importance to acquisition. This is even more prevalent in digital commerce as customer loyalty levels are lower for online retailers.
Returning customers spend 3 times more
In ‘The State of eCommerce’, a Benchmark report recently published by Yotpo with key analytics on e-commerce traffic, sales and online orders across 120,000 stores, states that returning customers account for 33% of the total spend, despite only being 15% of the total customer database.
This means they spend 3 times more than one time shoppers.
Returning shoppers can also represent a steady and somewhat predictable revenue as on average they purchase from the same website every 41 days.
Price and quality are the reasons why a customer would switch to another retailer in MENA
According to a customer loyalty report published by Nielsen, in the MENA region the main reasons cited for customers not being loyal to a retailer, a brand or a service provider are:
- better price (36%),
- better product or service quality (33%),
- better product features (16%),
- better service agreement and shopping experience (10%) or
- a better product selection or range (5%).
Global Loyalty Sentiment report – Nielsen, Oct 2013
The State of eCommerce – Yotpo, Nov 2015