In a world buzzing with companies offering competing products and looking to outdo one another, making sure your customers keep coming back to you is no longer optional —it’s crucial for the survival of your venture. That’s why we prepared a list of the most essential customer loyalty statistics to give you some insight into consumer loyalty programs, what they can do for your brand if applied right, and how you can incorporate them into your overall business strategy. So, stick with us while we explore what makes customers loyal.
Customer Loyalty Statistics (Editor’s Choice)
- Roughly 61% of customers will make many exceptions just to buy from brands they are loyal to.
- Nearly 75% of customers would change brands for those with a better loyalty program.
- On average, every customer is a member of 14.8 loyalty programs.
- Around 52.3% of loyal customers in the US would join reward programs.
- For 96% of consumers, customer service plays a vital role in brand loyalty.
- About 57% of North Americans access and interact with loyalty programs on their mobile devices.
- About 78% of customers expect the expansion of premium loyalty programs due to COVID-19.
Some Basic Customer Loyalty Stats
1. The loyalty programs market’s growth is projected at 5-6% over 2017-2022.
The customer loyalty programs market was estimated to have reached $215-$216 billion in 2020, growing at a CAGR of 5-6%. Further, by 2020, the loyalty management market worldwide was set to have climbed to $184-186 billion.
2. Roughly 50% of retail customers have left a brand they were loyal to because it failed to meet their needs.
While retail customers tend to be more loyal to brands than the average consumer, this trust still comes with many limitations. Therefore, if a brand fails to meet clients’ needs, about half of them won’t hesitate to leave for a competitor, consumer loyalty statistics show.
3. 55% of people don’t trust companies they shop from as much as before.
Advertisement coming directly from the company enjoys much less trust than it used to. Today, customers are shifting more toward recommendations from friends and family loyal to particular brands. For instance, 81% of consumers trust this group over advice from companies. On the other hand, 65% don’t trust press releases, 69% don’t trust advertisements, 71% distrust sponsored ads on social media.
4. Roughly 61% of customers will go out of their way just to buy from brands they are loyal to.
Brands that achieve strong levels of loyalty with their customers will prosper from more frequent and higher value purchases. For example, looking at customer loyalty stats, some 60% of consumers will buy more often from the company they feel loyal to. This figure increases to 70% if we consider millennials. 50% of loyal customers will buy more products than they would otherwise.
5. Customers who have developed an emotional relationship with a brand have a 306% higher lifetime value.
Those people who are emotionally connected to a brand are those who will add the greatest value to the overall revenues. Namely, these customers will spend $699 annually with the company, compared to $275 for just satisfied customers. Emotionally invested customers are further likely to recommend the brand at a 71% rate vs. an average rate of 45%, loyalty statistics indicate.
6. Unexpected rewards are the reason behind the loyalty to a brand for 60% of customers surveyed by SAP.
People like surprises, especially if it’s a gift card for a product they like or a discount for a service they were thinking about. Customer loyalty stats show that these small surprises lead to an added layer of loyalty among consumers of a particular brand. For reference, Porsche Design is an excellent example of how it’s done — for its 40th anniversary, the company handed out Touchcode cards which unlocked a video that further led to personalized vouchers with 10% off.
7. 75% of customers would change brands for a better loyalty program.
Companies that want to put customers front and center have to work on developing better loyalty programs. Otherwise, loyalty program stats in a KPMG study indicate that customers will begin to dissipate. Just having a loyalty program, however, is not enough, with the same study showing that 60% of consumers agree that loyalty programs are too hard to join as is earning rewards.
(Cision PR Newswire)
8. 58.7% of internet users globally see loyalty/reward points as the most appreciated part of their shopping experience.
A study conducted in 2019 by a platform iVend Retail, proves that customers love their rewards and participating in a retail loyalty program. It came in second on the report, only after quick and easy checkout (83%), customer loyalty statistics show. The third spot with 56.7% goes to free and easy returns. Pick up in-store/click-and-collect was fourth with 44.3%. Personalized offers, experience, and communication took fifth place with 37.1% of customers. Finally, 17.7% of customers valued AR technologies (virtual dressing rooms and voice-assisted shopping) the most.
9. The average customer is a member of nearly 15 client loyalty programs.
That, however, doesn’t mean that all memberships are active. An average customer is active only in 6.7 reward programs, even though they are a member of an estimated 14.8, loyalty program statistics confirm.
10. The movies segment has some of the most satisfied reward program members with 50%.
Several sectors have their fair share of very happy loyalty program customers — 46% of customers are satisfied with their credit card loyalty program, 45% love their rewards when they get gas and the same number are happy with their cruise line loyalty perks. Grocery and dining loyalty programs each boast 44% of satisfied consumers.
11. Around 40% of US customers are enrolled in and actively use a convenience store loyalty program.
Supermarket customer loyalty statistics further indicate that approximately 27% would enroll if their c-store of choice had a loyalty program. Another 16% confirmed their c-store has a rewards program, but they were not a member. Some 10% would refuse to enroll, even if their store had it. Finally, 7% said they were enrolled but they didn’t use it.
12. Around 52.3% of loyal customers in the US would join reward programs.
For brands they are loyal to, customers are more than willing to make an effort, research shows. 60% would recommend a brand to friends and family, while 39.4% will spend more money on a product despite cheaper alternatives elsewhere.
Brand Loyalty Statistics
13. Almost nine out of 10 American consumers prefer Amazon over the competition.
Customer loyalty research shows that the Seattle-based ecommerce giant inspires significant brand loyalty, with 89% of consumers in the US having indicated that they are more likely to buy from Amazon than rivals. The percentage is even higher (96%) among the company’s Prime members. And it doesn’t end there — two-thirds of consumers would begin their search for products on the ecommerce platform, while 95% are satisfied with the outcome of their search, Amazon customer loyalty statistics show.
14. Brand loyalty for Apple reached a record high of 92% in 2021.
The iPhone 12, launched in 2020, is credited with this impressive result seen in SellCell’s latest survey on brand loyalty focusing on big phone providers. In fact, Apple’s standing is so good it can serve as a showcase for customer loyalty. Back in 2019, the iPhone maker had a loyalty of 90.5%, which is still pretty high, according to Apple customer loyalty statistics. Its closest rival Samsung meanwhile saw a drop in loyalty from 85.7% in 2019 to 74% in 2021.
15. Chick-fil-A loyalty program has over 13 million active members.
Chick-fil-A is an American fast-food chain boasting more sales on average than KFC and McDonalds. Their Chick-fil-A One loyalty program is popular to the extent they decided to give away a loyal customer free meals for the rest of their life. While said customer was in fact 100 years old, this increased the company's brand awareness. As a matter of fact, it speaks volumes about the use of customer loyalty in marketing strategies.
16. As of 2020, the Starbucks Rewards program had reached a 19.3 million membership.
The coffee company has been dominating the market in terms of customer experience for quite a while. It’s no wonder then that many businesses have tried to emulate its reward scheme which has become one of the most prominent customer loyalty programs examples. According to Starbucks customer loyalty statistics, the coffee chain’s reward program accounts for 50% of its revenue. Even during lockdowns caused by the pandemic, Starbucks quickly reacted and adjusted its business operations, enhancing its mobile offering.
17. Members of Sephora’s Beauty Insider reward program make up 80% of the company’s annual sales.
Sephora has one of the most successful customer loyalty programs, boasting 25 million loyal members, contributing the majority of the company’s sales every year. It works so that customers earn rewards points for every purchase they complete. Since Sephora’s products aren’t cheap, this program helps balance this out through discounts and gift cards.
Loyalty Marketing Strategy Stats
18. Loyalty program trends show 95% of retailers with traditional loyalty programs were considering launching a premium one in 2021.
Premium reward programs for consumers typically charge a fee for members to join. These customers are treated as exclusive, with instant benefits that elevate their engagement with the company. B2B research conducted in 2021 shows that 88% of customers are happy with the additional benefits of a premium loyalty program.
19. For 96% of consumers surveyed, customer services play a vital role when they opt for loyalty to a brand.
Brand loyalty statistics point to a direct link between customer service and loyalty. So, to increase customer loyalty, marketers need to focus more on customer service as a crucial stakeholder in customer retention strategy. The US has the largest number of those surveyed who think of customer services as important in their decision to be loyal to a brand (69%).
20. CAC for B2B and B2C companies increased by 50% over the last five years.
CAC stands short for customer acquisition cost and we can look at it based on the channel used for acquisition. For example, paid CAC is higher than that of content marketing, however, the latter is quickly closing the gap. It’s one of the customer loyalty trends to be kept in mind when developing marketing strategies. Especially since it’s a way to gain new customers and save old ones while maintaining marketing costs stable.
Future of Loyalty Programs Stats & Trends
21. About 57% of North Americans access and interact with loyalty programs on their mobile devices.
At the same time, 58% of customers are less inclined to download an app to join a customer loyalty program. Then, 79% prefer programs that don’t require them to use an actual card. These two stand strongly in contrast, however, mobile and app programs for rewards are one of the most important loyalty program trends.
22. About 78% of customers expect the expansion of premium loyalty programs due to COVID-19.
The global pandemic has impacted consumer behavior, prompting a massive shift online. It has also been one of the main drivers of customer loyalty programs. McKinsey’s study shows that 35% of customers have tried a new brand since the pandemic started, while 77% engaged in new shopping behaviors. Premium programs meanwhile create a proper differentiation and deliver instant benefits to customers to foster them to spend more and advocate for the company.
23. Over 56% of loyalty programs involve game mechanics.
The ‘gamification’ of loyalty programs presents an opportunity for brands to create better experiences for the consumers. Gamification actually represents the use of countdowns, goal setting, and virtual rewards. Customer loyalty statistics show that such reward programs result in a two-fold rise in the enjoyment by the consumers. In fact, out of those surveyed on this topic, 53% members say game mechanics make it more enjoyable for them, and 81% take advantage of existing game mechanics in loyalty programs.
The Bottom Line
In this article, we have covered some basic stats about loyalty programs and their importance to companies today, as well as some interesting customer loyalty facts. As you can see, product quality is an important feature, however, the experience a brand provides cannot be overstated. Personalized experience, rewards, gifts —it should all be applied to foster loyalty, making customers come back for more.
Customer Loyalty FAQ
Why is customer loyalty important?
Customer loyalty is a key factor that helps brands keep maintaining the customer base. A well-established loyalty program will help the company retain its customers, but also attract new ones, reduce costs, increase profits, and decrease turnover. On average, repeat customers will spend 67% more between the 31st and 36th month of their loyalty program membership, compared to the first 0-6 months, customer loyalty statistics show.
How much more do loyal customers spend?
Based on customer retention statistics, it costs five times more to attract new customers and lock them than to retain those already in your base. A loyal customer spends 31% more per purchase, compared to a new one and is 50% more likely to purchase new products from the same brand.
How big is the loyalty market?
The global loyalty programs market is estimated at about $215-216 billion, with projected CAGR of 5-6% over 2017-2022, customer loyalty statistics show.