With customer acquisition costs having nearly doubled in the past few years, a solid base of loyal clients is more important than ever to stay ahead of the competition. Not only is keeping your loyal customers happy cheaper, but they can also act as brand advocates for free.
The path to acquiring lifetime customers is paved with great customer service. But there’s more to it. The latest customer loyalty statistics detail why customer loyalty is important, what consumers want, along with more information to help you increase customer loyalty.
Many business owners think that attracting new customers will benefit their business more than keeping the existing ones. Retaining existing customers, however, is five times cheaper than acquiring new ones, with 70% of business owners having confirmed this.
Repeating customers spend more than newly acquired customers. Still, how much more do loyal customers spend? A study has shown that this number stands at 67%. New clients remain reserved because they don’t trust the brand with the first purchase and see it as risky. Returning customers, on the other hand, have already established trust and built a relationship with the brand which entices them to spend more.
Customer retention statistics show that retaining 5% of the customers can boost business profits by up to 95%. Further pointing to the importance of customer loyalty, returning clients are likely to buy more and spend more money. Plus, they are more likely to refer your business to other people. That’s what we call a win-win.
(Harvard Business School)
65% of a company’s business comes from existing clients. Gartner Group has forecast that a whopping 80% of a company’s revenue will come from 20% of its loyal customer base. These customer loyalty stats clearly indicate that keeping your existing clients happy is more important than ever.
(Fundera, Gartner Group)
Sales statistics show that online stores make almost half of their profits from the most loyal 8% of the people coming to their page. Loyal customers will keep coming back to their favorite ecommerce store and spend more than the average customer which increases their value to the brand over time.
Companies seem to forget why people have become loyal to them. Stats show that the product is one of the top drivers of customer loyalty for 77.8% of shoppers. So, instead of forgetting about your product, try to evolve along with the needs of your customers while keeping their beloved product at the forefront of your strategies.
Customer service statistics have shown that 67% of customers will switch the brand immediately after experiencing poor service. Customers want to feel appreciated and want to have a pleasant and helpful conversation with the agent without being passed around to multiple people. A whopping 86% of the surveyed customers have said that establishing an emotional connection with the agent would entice them to become loyal to the brand.
Some of the most popular customer loyalty trends include mobile optimization, innovative rewards, and excellent customer service. Building a multi-channel system for clients is also important. A study by the Aberdeen Group indicates that firms with a good omnichannel keep their clients in 89% of the time as opposed to 33% for those who don’t do this properly.
77% of all people appreciate it when customer support sends them feedback and accepts their ideas, since that makes them feel valued and involved. More importantly, showing that you listen to your customers helps build brand loyalty.
Wantedness’ loyalty statistics say that brands who share the same values with their customers are more likely to get them as returning or loyal clients. Almost 9 out of 10 said they are loyal to brands that share the same values as them.
Customers feel loyal to a company when they actually show care and understanding. While there are many ways to get and keep a client’s attention — gifts, discounts, bonus points — it takes more than that to make them loyal. According to customer loyalty stats, 79% of Americans say that they are loyal only to those who clearly demonstrate that the company cares. Another 56% say that showing a deep understanding of their preferences and priorities will do the trick.
There’s nothing customers love more than good quality and excellent service. It’s no wonder then that most of them (58%) loathe paying for a product that has low quality, or receiving poor service (51%). Consumer loyalty statistics further show that 28% of customers can’t stand corruption in a company, 26% hate misleading ads, while the remaining 26% don’t appreciate price changes.
Nearly 60% of the consumers that are already loyal to a brand would join their loyalty program. If you want to keep your loyal customer base and make them feel like a part of a community, you might want to invest in creating a unique loyalty program.
According to customer loyalty statistics, 37% of customers are ready to pay more money just to get into a loyalty program and get extra value from the brand. This represents a great business opportunity and the most popular option is a tiered loyalty program. Such a program will help you drive extra revenue streams from customers who already love your brand and don’t mind spending more.
Shoppers who love the brand’s product are looking for more than just discounts and convenience. Based on Yotpo’s customer loyalty research covering 2,000 people, 28.7% of shoppers want the rewards to be more interesting and 45.8% of them expect some kind of a gift for their loyalty. This means the time has come to get creative and reinvent your point system and redemption options.
Loyalty program members want to be treated like VIPs. More specifically, 46.4% want early access to sales and 31.8 would love to get the first peek on new products. Additionally, you could consider creating a sense of exclusivity by inviting your loyal fans to invite-only events (9.6% of shoppers love this).
Loyalty programs give the customers a feeling that they are part of a community. They enjoy exclusive benefits that entice them to share their excitement and experience with others. In fact, customer loyalty statistics have shown that 70% of them are likely to recommend a brand with a solid loyalty program.
The latest Bond statistics indicate that 44% of members are satisfied with the program, down from 47% in 2018. Members have raised their expectations which has made it harder for brands to keep up, which is the reason for this decline in satisfaction.
Personalization is one of the greatest customer loyalty factors and an integral part of consumer loyalty programs. Businesses that develop data-driven and highly-personalized member experiences will see a 6.4x higher satisfaction with the program. Additionally, members are 6 times more likely to say good things about a brand with a good personalization and 3.5 times more likely to spend more time with the brand.
Gamification is a powerful tool to increase engagement and enjoyment. Game mechanics in loyalty programs include tiers and statuses, leveling-up, unlocks, challenges, missions, goals setting and more. Customer loyalty facts further indicate that over half of the loyalty members are interested in such mechanics, 81% of them engage with game mechanics when they are present, while consumers enjoy 1.7 times more when they are in use.
The majority of Americans have no problem with companies and brands tracking their activity on the internet if that allows them to get into reward programs for customers and get more benefits.
Loyalty program stats further suggest that the average American household is a part of some 19 to 29 loyalty programs but they are not using all of them regularly. They only use 5 to 12 while the rest are just customer loyalty cards stuffed in their wallets and probably forgotten.
An important thing to consider when crafting a loyalty marketing strategy is that women make for 72% of loyalty members compared to 28% of men. Other stats show that 73% of those women have children, 75% of them are born in the early 80s of the last century, and an amazing 78% are upper affluent.
Young Millenials and Gen Z are basically loyal natives. They are highly influenced by loyalty programs and are 20% more comfortable than the average US consumer sharing their information when signing up for a loyalty program.
Samsung is among the brands with high satisfaction rates among users. 86% of the brand’s current users say they will stay loyal to the company when they upgrade in the future and 87% say they are happy with this brand. Samsung further occupies the third spot on the Marketing Charts’ list of top brands ranked by customer loyalty in the US.
(SellCell, Marketing Charts)
Apple customer loyalty statistics from the recent SellCell survey indicate that 90.5% of current iPhone users plan to stick with Apple when they decide to upgrade. The same survey shows that while 21% of these users might opt to switch to another brand, they are too tied into the Apple Ecosystem and changing operating systems from iOS to Android would be an unnecessary hassle.
Amazon appeared three times on the Marketing Charts — it ranks first for its performance in the Online Retail, fourth in the Tablets category, and fifth for its excellence in the Video Streaming category.
Amazon Prime enjoys a great satisfaction rate. The vast majority (76%) of its members would definitely renew their membership while 19% of the Prime members are somewhat likely to renew their memberships.
Starbucks customer loyalty statistics show that the average client visits their restaurants 6 times a month while the loyal ones do the same 16 times a month. That’s almost three times more than the average ones. For this to happen, Starbucks worked a lot and their loyalty program is one of the best stateside.
(The Fact Site)
Among all industries that offer membership cards, people are the most satisfied by the grocery markets. The other industries and products behind them are bank credit cards and restaurants with 48%, and gas stations and hotels with 47%. People are least satisfied with airline loyalty programs (36%).
These customer loyalty statistics teach us one very important thing — it’s always better to invest in customers who have already done business with you than to look for new ones.
The secret to making your customers happy is to provide superior customer experience. But beyond that, you need to keep up with the changing consumer needs and invest in disruptive technologies that will prevent your customers from abandoning your brand.