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Consumer expectations growing at a healthy clip, reveals study

February 12, 2019

Retailers shouldn't expect consumer expectations to decline any time soon, if at all,as a Brand Keys report reveals expectations are growing an average of 25 percent each year.

"Trust has become the connective tissue between brands and loyalty," said Robert Passikoff, president of Brand Keys, in a release on the research. "Meanwhile, customer concerns regarding privacy, security and brand transparency have reached a tipping point."

The release noted three fiscal realities of loyalty and engagement that marketers should keep in mind:

• It costs 9 to 11 times more to recruit a new customer than to keep an existing one

• An increase in loyalty of only 7 percent can lift lifetime profits per customer by as much as 85 percent

• Depending upon the sector, an increase in loyalty of just 3 percent is equivalent to a 10 percent across-the-board cost reduction program