September 29, 2020 – Businesses with more loyal customers are adapting to the pandemic better and are well placed for the recovery, according to Visa's latest data. Leveraging anonymized global transaction data across millions of merchants accepting Visa cards, we found that merchants who had a greater share of sales coming from repeat customers prior to the pandemic recovered faster on average once the lock-downs were lifted. Businesses that depend on attracting new customers to maintain revenue growth are more exposed to the downturn.
This big data-driven measure of customer churn helps underscore that loyalty matters to the bottom line. Globally, businesses in the top quartile by customer loyalty were 9 percentage points more likely to remain open and experienced 17 percentage points higher sales transaction growth relative to their peers ranked in the bottom quartile through the end of August.