How does customer retention impact revenue?

Retention has an outsized effect on the bottom line. Repeat customers spend more, buy more often, and cost less to serve, so small gains in retention translate into large profit swings.

• Bigger orders: retained customers spend about 31% more per order than first-time buyers.
• More willing to try: they are roughly 50% more likely to try new products.
• Profit leverage: per Bain & Company, a 5% lift in retention can raise profits by 25% to 95%.
• Cheaper to keep: you avoid the high cost of constantly replacing lost customers.

Loyalty and membership cards are a simple, physical way to nudge repeat purchases.