June 19, 2017

When Does The Customer Become Loyal?

In most cases, it takes a little bit of time before the customer becomes "loyal". Across 200+ projects in ten years, it has been my experience that "loyalty" seems to become a possibility once the customer has a 60% or greater chance of buying again in the next year.

This table is very typical ... it will take at least five purchases before the customer becomes loyal ... and the customer has less than a 10% chance of becoming loyal.

Now, if you know that the customer is unlikely to become loyal, what would you do?
  1. Treat the small number of loyal buyers you have like royalty!
  2. Work terribly hard in the 0-12 weeks after a purchase to get the customer to purchase again.
  3. Find ways to generate profit on first purchases - so that you can get more first-time purchasers which yields more loyal buyers over time.
You can do this. You can follow the logic and make magic happen!

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