It was revealed that existing customers are left frustrated, with almost half considering switching loyalties if a providers special offers were only available to new customers.
These statistics are striking given todays highly competitive market. It is imperative that brands not lose sight of the importance of retaining existing customers, especially when they opt to attract new business with exclusive special offers. More than half cited loyalty rewards as an important factor when staying with a provider, demonstrating it is an area that must not be ignored to keep customers happy.
Commenting on the research, Grass Roots Group divisional director Ian Horsham, said: Its hard to go online or watch TV without being served up special offers for new subscribers or shoppers, making it all too easy for consumers to become fickle when it comes to loyalty to just one brand.
Our research has shown that customer loyalty is being compromised and people will switch brands if they feel they are being forgotten or not given the same treatment as new customers.
Brands are becoming complacent when it comes to customer retention. They concentrate too much on securing new customers, leaving others to feel undervalued. With the cost of customer acquisition five times greater than keeping existing customers happy, this strategy could have a huge impact on revenues and future business success.