50% of customers who visit a business fail to return, effectively becoming zombies. Full article brought to you by LevelUp.
There’s no doubt that customer loyalty is important. Operators are well aware that they ought to invest money in maintaining their existing customer base. After all, it can cost up to five times more to recruit new customers than to retain existing ones; and loyal customers are going to come back more often and spend more money over time. They’re also more likely to help drive traffic to your business by endorsing your brand and recommending your business to their family and friends.
Despite the countless punch cards, bounce back coupons, and loyalty programs currently in circulation, nearly half of your customers simply aren’t coming back in the door. A recent study from Colloquy revealed that over 50% of customers who begin using a business’ loyalty program fail to return. What is happening to your customers? How can you prevent your customers from becoming inactive “zombies”?
The main issue is the rapid growth of competition. In the fast casual segment alone, the number of locations has grown by over 6% in the past year according to a study by the NPD Group.
You need a loyalty program that lets you connect with customers even after they’ve left; a solution that will keep your brand top of mind.
Building an email list and inviting your customers to follow you on Facebook are simple ways to stay in touch with your customers, but how do you know that these efforts are working? How can you be sure that you’re targeting your inactive customers and simply not just over-incentivizing your loyal customer base?
Beyond engaging with your customers out-of-store, you need to implement a program that provides insight into your customers’ purchase behaviors so you can specifically target those “zombied” customers. LevelUp’s payment and loyalty infrastructure allows you to do just that.
The LevelUp platform collects valuable customer data with every transaction, and LevelUp’s re-engagement campaigns enable businesses to automatically trigger email offers that invite customers back after 30 days of inactivity.
LevelUp’s re-engagement campaigns have already revived over 20,000 inactive “zombies”, returning over $750,000 to participating businesses.
Interested in learning more? Click here to review our Zombie Survival Guide: Restaurant Edition.