Repeat Customers Spend 33% More Than New Customers

A customer research company has recently published findings that suggest repeat customers spend on average 33% more than new customers. Another key result from the survey is that referrals among repeat customers are 107% greater than non-customers.

The two facts combined reaffirm the long held view that operating a strategic customer retention plan is essential for business success. Developing your customer loyalty is a key part of any sales growth plan, especially as it can cost as much to gain ONE new client as to keep FIVE existing ones.

Building your customers advocacy is crucial especially when you look at the way businesses can lose customers. Incredibly 68% of customers leave because of what they perceive as indifference from the service provider. This level of indifference makes them feel unappreciated and taken for granted.

14% leave because of dissatisfaction with the current service and/or product
9% leave because of a better product/service or price
5% follow a friend's advice, these customers are passive and have been persuaded by a detractor.
3% move away from the area
1% of customers die

Retail Active the agency who compiled the survey information specialise in Mystery Shopping and Compliance Auditing.

Julian Chamberlain, Managing Director of Retail Active commented, ‘Before any company considers spending valuable time and money attracting new customers, they should consider these statistics. It is striking that even in such a tough economic climate loyal customers are still prepared to spend much more than those new to your business proposition.’

Retail Active provides research focused on delivering genuine business advantage to clients. If you would like to know more about the Mystery Shopping services they offer visit www.retailactive.com or call 01235 438413.