Loyalty
Repeat purchase/support; customer returning to business.
Formula
Customer Retention Rate = ((End Customers − New Customers) ÷ Start Customers) × 100
Real World
Starbucks' Rewards app has over 30 million active members in the US; points accumulation and personalised offers drive repeat visits and higher average spend per customer.
Exam Focus
Quote the lower cost of retaining vs acquiring customers as evidence when 'justify' questions ask about loyalty programme investment.
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