For most Filipino businesses, acquiring new customers is a sign of growth. After all, it is measurable and shows the brand’s ability to market to the right audience. Unfortunately, new customers do not always mean success in the modern business landscape.
Acquiring a thousand customers through various strategies does not mean anything when you lose them within 10 days. With so many other companies competing for customer attention in the Philippines, having an effective customer retention strategy ensures your customers stay loyal to your brand.
Why is Customer Retention Important?
According to Demand Sage, around 44% of businesses have a greater focus on acquiring new customers, while only 18% prioritize retention. Expanding the consumer base can help achieve short-term goals and drive quick growth, but upselling to an existing customer is more lucrative in the long run.
There are many reasons why customer retention is more valuable than acquisition in today’s competitive landscape:
1. Lower Costs, Higher Profits
Acquiring a new customer is five (5) to twenty-five (25) times more expensive than retaining one, mainly because of the expenses associated with different marketing and sales strategies. Focusing on acquisition enables brands to lower their expenses and attain higher profit margins over time.
2. Better Selling Rate
Loyal customers are more likely to push through with a purchase. Research by Invesp found that the success rate of selling to a customer you already have is 60-70%, while the rate for newly acquired consumers is only around 5-20%.
3. Higher Customer Lifetime Value (CLV)
Customer lifetime value (CLV) refers to the overall revenue generated by the business from a single customer over the duration of their relationship. Retained customers can boost CLV by 95%, significantly contributing to the company’s growth through repeat purchases and more time spent with the brand.
4. Stable and Predictable Consumer Pool
Retained customers are easier to understand than new ones, allowing businesses to develop consistent sales patterns and make more accurate forecasts. This stability also makes it easier for companies to navigate market fluctuations and economic uncertainties.
5. Stronger Brand Relationships and Trust
Providing personalized experiences, regular engagement, and outstanding customer service fosters a sense of connection and loyalty. This enables businesses to build deeper, long-lasting relationships with retained customers.
Loyalty Programs: The Best Retention Strategy
To retain customers, businesses should give their customers a reason to keep engaging with the brand. This is where loyalty incentive programs step in.
Customer loyalty and engagement programs are marketing strategies that involve rewarding customers for their continuous repeat purchases and interaction. These programs can motivate consumers to stay connected and continue choosing the brand over competitors.
How It Works
- Track Purchases – Enterprises use apps, cards, and membership accounts to track customer activity.
- Earn Points – Customers can earn points through a variety of online and offline channels. Offline in-store purchases can sync with POS systems, while online points are earned by uploading receipts, entering unique codes, and syncing with marketplace transactions.
- Engagement Rewards – Many programs also reward points for engagement activities like completing surveys, joining daily missions and gamified challenges, and referring friends.
- Points Redemption – Once customers reach a certain threshold, they can redeem points earned for various rewards, such as discounts, exclusive deals, and freebies.
How Loyalty Programs Retain Customers
Loyalty programs are a proven way to drive repeat business. Here are some of the ways they help retain customers:
- Increase and Incentivize Repeat Purchase – Loyalty programs motivate customers to keep buying from a brand to earn points and win rewards.
- Build Emotional Connections – Successful loyalty programs foster deeper relationships and bond with customers, making them feel valued.
- Leverage Psychology – Loyalty programs tap into loss aversion, making customers hesitant to switch brands for the fear of missing out.
- Create a Community – Programs can foster a sense of community among members, adding another layer of engagement and loyalty beyond transactions.
Build a Strong Loyal Customer Base in the Philippines with Buzzebees
As competition in the Philippine market intensifies, retaining existing customers becomes a brand’s strongest advantage. A tailored, well-designed loyalty program can strengthen relationships, encourage repeat business, and build a solid foundation for sustainable growth.
Start investing in the customers who already trust your brand, because loyalty pays off.
At Buzzebees, we turn one-time buyers into lifelong advocates through our comprehensive customer relationship management (CRM) and loyalty solutions. Our world-class loyalty platforms have empowered businesses across Southeast Asia, generating over 46% engagement and 8x the ROI.
Ready to strengthen your customer journey? Send an email to analyn.b@buzzebees.com to get in touch.
