Relationships are the foundation upon which loyalty is built. And there is a direct connection between the bottom line profit of your resort and the degree of customer loyalty your resort maintains. More loyalty translates to greater revenue and profit. Simply put:
Relationships + Loyalty = Revenue + Profit
Proving Loyalty Leads to Profit
The linkages between relationships on one end and profit on the other are well documented.
• Research from the prestigious consulting firm Bain & Company shows that depending on the industry, when firms retain just 5 percent more of their best customers, corporate profits can be boosted 25 to 85 percent.
• There are numerous studies reporting that companies lose between 10% and 20% of its customers every year. At the high end, this equates to a 100% customer turnover every five years.
• In the seminal book on the subject, “The Loyalty Effect”, Frederick F. Reichheld informs us that Loyalty Leaders, companies with the strongest customer relationships, grow at close to twice the industry average and do so more cost effectively.
• And finally, in a 2004 McKinsey Report it’s stated that the average business spends $100 to acquire a new customer and only $10 to keep one.