Last month children’s retailer Gymboree declared bankruptcy. Ten other retailers have declared bankruptcy so far this year. Some of these include:
- Rue21, bankrupt in May 2017
- Payless ShoeSource, bankrupt in April 2017
- Gander Mountain, bankrupt in March 2017
- Gordmans Stores, bankrupt in March 2017
- Hhgregg, bankrupt in March 2017
- BCBG Max Azria, bankrupt in February 2017
- The Wet Seal LLC, bankrupt in February 2017
- Eastern Outfitters LLC, bankrupt in February 2017
- Marbles Holdings LLC, bankrupt in February 2017
- The Limited, bankrupt in January 2017
Whatever the causes of these bankruptcies, there are some common indicators of trouble. These are:
- Losing customers
- Out of control costs
- Running out of cash
A company with one of these problems is in trouble. But one with all three problems is destined for bankruptcy.
One of the best defenses against these problems is to build customer loyalty.
Loyal customers not only stick around but also bring new customers. Loyal customers are cheaper to service and lead to lower advertising costs. And finally, because loyal customers buy multiple times, they generate steadier cash flow.
RewardCamp can quickly increase customer loyalty. It converts new shoppers into loyal customers. Every day without a loyalty program is another day that you are leaving money on the table for your competitors.
Start growing customer loyalty with a free trial of RewardCamp.