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Loyalty Programs That Work

Why try to rope in new customers when your regulars are far more likely to buy? A loyalty program will keep repeat visitors clicking.

This story appears in the February 2007 issue of Entrepreneur. Subscribe »

Everyone knows repeat visitors are more likely to buy from you than new customers. In fact, your regulars are about eight times more likely to order than newcomers, says digital marketing and analytics solutions provider WebSideStory Inc. So if you haven't yet launched a loyalty program--well, what are you waiting for?

"It's long been known that repeat visitors make better customers than new visitors," says Ali Behnam, senior digital marketing consultant for WebSide-Story in San Diego. According to last spring's WebSideStory Index, a statistical barometer measuring technographic trends in millions of daily internet visits to websites, repeat visitors to B2C e-commerce sites had a conversion rate of 12.61 percent, compared to just 1.55 percent for new visitors.

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