New stats suggest that retailers are improving their customer retention rates, so is this the result of a focus on the customer experience?
IMRG stats found that ‘the active customer retention rate’ reached a record high of 36.4% for May to July 2016 (Q2), 5% higher than the same period in 2015.
The report also found that the average price per item sold reached its lowest in three years in Q2, which suggests plenty of discounting, a result of Amazon’s Prime Day perhaps.
The increased retention rates should be heartening for retailers though, and suggests that many are pursuing a more effective long-term strategy. There has been a tendency to focus on acquisition at the expense of retention, but the former is generally more cost-effective.
For example, here’s a selection on stats on retention:
The probability of selling to an existing customer is 60 – 70%. The probability of selling to a new prospect is 5-20% (Marketing Metrics)
66% of consumers say features, design and quality of product or service are the leading factor that determined brand loyalty (Support.com).
The top three reasons consumers switch brands: cheaper