How to Find this Crucial Metric on Your Point of Sale
The 3-Visit Threshold
When we look at customer statistics for Crave Cookies, one thing becomes abundantly clear: The magic number is three. It usually takes at least three visits for a customer to become a repeat customer. But why is this number so significant?
The Probability Game
Here's where it gets interesting. After a positive first visit, a customer has a 30% chance of returning. After a positive second visit, that percentage remains the same—30%. It's only after a positive third visit that the chances of becoming a lifetime customer shoot up to 75%-80%.
The Value of a Lifetime Customer
The numbers speak for themselves. Once a customer crosses that 3-visit threshold, their Lifetime Value (LTV) stands at an impressive $250. This underscores the immense revenue potential that lies in cultivating long-term customer relationships. In simple terms, a customer who has visited and had positive experiences at least three times is incredibly valuable to your franchise.
Implications for Your Franchise
As a franchisee, these numbers should dictate your retention strategies. Focus your marketing and customer service efforts on not just the first or second visit, but strive for that golden third visit. The cost of getting them there will more than justify itself once they transition into a lifetime customer.
Practical Steps
Incentivize the Second and Third Visits: Whether it's through loyalty programs, limited-time offers, or personalized discounts, draw those first-time customers back in.
High-Quality Customer Experience: Ensure that each visit is a positive one. This involves maintaining the high-quality, delectable cookies that Crave is known for, along with excellent customer service.
Track Customer Visits: Use your point of sale system to keep an eye on how many times a customer has visited. After the second visit, they should be flagged as a high-potential customer for more targeted marketing.
By understanding and acting on these customer visit metrics, you can significantly impact your franchise's profitability. Remember, as a franchisee, the onus of success is on you. You have to implement the plans and guidelines we provide to ensure that your store thrives. And the data shows: focusing on getting customers to that third visit is a strategy worth investing in.
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