Customer Loyalty – Meet Data-Driven Strategies to Boost Your Sales


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Why It’s Better to Monetize Existing Customers Instead of Constantly Looking For New Ones?

If you type “how to attract new customers” on Google, in less than a second, Google prepares approximately 2,000,000,000 search results for you. This shows a fact that is so obvious that we often forget it: Most entrepreneurs and marketers keep asking themselves the same question “How do I attract more customers?” They constantly come up with new, more and more creative ways to attract new customers.

I believe that business is about carrying out the brand’s mission and regularly increasing profits, which will allow us to carry out this mission better. Regardless of whether you achieve these profits thanks to new or constantly returning customers – money is money! But as I found out over 10 years of conversations with clients and business partners operating in various industries (which I will tell you about in a moment) – earning loyal customers can be much easier than looking for new …

I am an entrepreneur and founder of 4 startups, including BOWWE Builder and Honaro. For +10 years, I have been helping startups, SMEs, and enterprises improve their work by consulting and developing IT systems. Over the years, I have seen many business projects – the vast majority of them one of the most critical factors influencing long-term profit was CAC (Customer Acquisition Cost). Often, the task of marketing was – through various means – to lower the CAC as much as possible to allow a significant increase in customers in a short time while maximizing the margin on each sale.

How high are the costs? Let’s look at the Average CAC for SaaS Industries By Customer Type. According to in 2020 CAC rates for the US retail industry were:

* $ 76 to acquire a single customer (B2C)
* $ 303 to acquire a small company (B2B)
* $ 2,980 to acquire a middle company
* $ 9,018 to acquire big enterprise

You will agree with me that the above amounts are significant. So does the CAC lowering approach make sense? It would seem so.
However, I want to show you an interesting approach with which you can significantly increase your profits, skipping the CAC. This is especially useful in B2C and SMEs B2B, for which a large CAC is often a bigger obstacle than $ 9.018 for really big players. This method will allow you to increase sales without constantly fighting for a new customer. What is this about? Focusing on customer loyalty.

Loyalty – Secret Key to Make Your Sales Easy

Why do I think it is so important to focus on customer loyalty? Most marketers who focus too much on driving new leads into the sales funnel forget what a tremendous force a community of loyal customers can be for business. According to Altfeld Research, the probability of selling to an existing customer is 60-70%! Remind yourself if you have brands (I have) that you like and which products and services you buy the most. I can also show you another undeniable example. Take a look at the picture below:

What you see now is the line to the Apple Store on the day of the iPhone X launch in 2017. Do you think all these people came here to buy their FIRST iPhone? Or have they never purchased any Apple product before? I do not think so.

Hubspot confirms, that as many as 90% of satisfied customers are ready to buy from you again. Do you need extra motivation to take better care of your existing customers?

The research and my experience show that existing customers are much more valuable than new prospects. The hard truth is that the probability of selling a product to a new customer stays at a low 5-20% (loyalty statistics data proves it). Now, do you understand where the CAC rates are so high ?! Regardless of the industry, a customer who buys from you must pay for your time, which you devoted to contact with other leads who ultimately did not buy anything. Otherwise, most businesses would go bankrupt due to lack of profitability). The price of your product/service also includes fee for all “failed times” that you have failed to sell. This is very normal in business.

How to increase sales without constantly fighting for a new customer?

You’ve probably heard of the Pareto principle, but did you know that it also works for growing your business? According to research, as much as 80% of your revenues come from only 20% of your loyal customers! You have to take care of them to effectively increase the income in your business. There is no other option; this number affects your entire business too much and you cannot ignore it. You can do this in many ways, but all of them have something in common: the key is to maintain your customer’s trust and offer them a great customer experience!

3 Strategies to Improve Customer Experience (CX)

Loyalty programs

Loyalty programs have been known and widely used for so long that sometimes we can forget about them. However, as research shows, loyalty programs are still powerful tools with which you can significantly increase the customer experience of your brand! To help you look at loyalty programs from a different perspective, I have prepared a handful of interesting statistics for you:

58.7% of internet users think gaining rewards and loyalty points is one of the most valued aspects of the shopping experience.

Source: eMarketer

Very important data for eCommerce. According to eMarketer, this was the second most common answer (only “Quick and easy checkout” reached higher result) in the same product loyalty research, which stood at a high 83%. This shows how important it is to provide customers with a mechanism to earn valuable rewards. It is very important that they track their progress as they purchase, so loyalty points work very well.

Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program.

Source: Bond

It turns out that a valuable loyalty program (i.e. one in which the customer can earn valuable rewards) is enough to recommend it to friends. It is very important. From my experience of working with small companies, I will add that over 60% of revenues
small businesses generate customers on recommendation! It gives a lot of possibilities. How big? According to SocialToaster, the average social media user has contact with over 600+ friends, families and colleagues. This means 1 positive opinion shared on social media, has a chance to reach even 600 individuals!

US adults belong on average to nine different ones across multiple industries.

Source: Oracle

I don’t need to add anything in this regard. If the average American is able to successfully participate in as many as 9 loyalty programs, I guarantee you that you are able to fight to join yours as well.

Personalization – the most robust trend in customer experience design

When talking about increasing customer experience, it is impossible not to talk about the most important trend, which is slowly becoming a requirement – personalization. Whether we buy clothes, smartphone or investment services, personalization and the unique, individual experience that goes along with it become one of the most critical factors in successful sales.

How it works? Personalization can improve customer experience by making it more relevant and targeted to the individual. This can be done by tailoring content and recommendations to the customer’s specific interests or providing a more customized and humanized service. Making the customers feel like the experience is more tailored to them can increase satisfaction and loyalty. Then they are more likely to purchase again (and again).

If you don’t send personalized messages, you won’t even get in touch with your customers. According to SmarterHQ as much as 72% of consumers say they only engage with personalized messaging. If you fail to establish contact with customers, you will not receive any feedback from them and you will not know what influences their emotions and shopping experience. In short: you’ll be blind.

Do you need social proof that personalization works? No problem, here it is: 63% of marketers noticed that personalized messages increase customer interactions, resulting in a much better conversion (Statista). Do not wait and implement personalization in your business as soon as possible. Here are some ideas to get you started.

1) Personalized Product Recommendations

If a customer has viewed or purchased a product in the past, they may be more likely to do so again if they see that product recommended. This is why many online retailers use personalized product recommendations generated by algorithms that take into account a customer’s past behavior.

2) Personalized Search Results

When a customer searches for something on a website, the results that are shown to them can be personalized based on their past behavior. For example, if they have searched for a particular type of product before, they may be more likely to see results for that type of product first.

3) Personalized Emails

Many companies send out automated emails that are personalized based on a customer’s past behavior. For example, suppose a customer has abandoned a shopping cart. In that case, they may receive an email reminding them of the items they were interested in and providing a discount to encourage them to complete their purchase.

4) Personalized Advertising

Advertising can be personalized to target a specific customer based on their past behavior. For example, suppose a customer has visited a website but not made a purchase. In that case, they may see ads for that website on other websites they visit.

5) Personalized Customer Support

Customer support can be personalized to address a customer’s specific needs. For example, suppose a customer has had trouble with a product in the past. In that case, they may be routed to a customer support representative who is familiar with that product and can help them resolve their issue.

User-generated content – users engage with each other around your brand

There is a saying in marketing that Content is a king. Well, if basic content is a king, user-generated content (UGC) must be Emperor. Where do its advantages come from? User-generated content is any form of content that has been created and published by a user or client, rather than by a company or organization. This can include anything, especially:

* blog posts
* social media updates
* online reviews
* forum comments
* and more

UGC is often seen as more trustworthy and reliable than traditional forms of marketing and advertising, as it is seen as coming from a more impartial and unbiased source.
How to use User-Generated Content to increase Customer Experience?

1. To create a more personal connection with customers and potential customers. When people feel like they are part of a community, they are more likely to become loyal customers. Create a closed group on Facebook that brings together your customers, through which you will communicate with them, ask about their needs, and obtain feedback on your products or services.

2. To generate leads. If you have a product or service that you want to promote, you can use user-generated content to get people interested in what you have to offer. One of the most popular forms of attracting new customers to the brand is testimonials.

3. User-generated content can be used to increase brand awareness. When people see positive reviews and comments about your brand, they are more likely to remember your brand (According to 35% of Millennials believe that UGC is more memorable than any other type of content) and consider using your products or services in the future. Of course, the more mentions the better, so it’s good if your users talk about your brand in multiple channels. Then your range will be much greater!

4. Trust is the basic sales-building feature of your company! 91% of customers buy products and services from companies they trust. What is the best trust-building tool? User-Generated Content! 92% of the consumers trust recommendations from other people more than any other source!


I’ve never been a fan of lengthy summaries, so I have prepared a short and concise article summary for you. Here’s what you should remember about it:

Key Takeaways

1. Currently, there is a fierce fight for new customers in many industries. Instead of taking part in it, focus on the most valuable asset of your company – current customers.

2. The probability of selling to the current customer is as high as 60-70%, while to a new customer, it is 5-20%

3. 80% of your sales come from 20% of your most loyal customers. Your task is to increase the number of these people.

4. The best way to increase your sales profits is to increase the customer experience. This can be done in many ways, e.g .:

* Loyalty programs – A loyalty program can also help increase customer spending by giving them a reason to spend more. This could be in the form of points that can be redeemed for rewards, or exclusive discounts for high-spending customers.

* Personalization – This has been the most significant trend in customer experience in recent years. Plan the following stages of a personalized customer journey and start with personalized messages. Even 72% of consumers do not even react to messages that are not personalized.

* User-generated content – focus primarily on gaining positive opinions about your brand in as many channels as possible (website, social media, review sites, Google My Business). 92% of the consumers trust recommendations from other people more than any other source!

If you are reading this fragment, you either read the whole article (for which I thank you very much) or you have scratched it in full (which I discourage you from and suggest you read it!) I hope you will find the article useful and valuable! This is my first publication on CustomerThink, so I would like to ask you for honest feedback. I will take all your comments to heart while writing my next article!

Karol Andruszkow
He’s a co-founder of BOWWE Web Builder. The entrepreneur by real passion with extensive knowledge of IT and business. Since 2003 founded 4 startups and is constantly running his own startup ventures. International Finance Corporation makes him a Speaker in E-commerce and Online Marketplaces. He knows how to build successful businesses & startups. For almost ten years, he used his knowledge to successfully helping startups small and medium entrepreneurs improve their work by consulting and developing IT systems.


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