Customer loyalty statistics: What you should know to succeed
Do you value your loyal customers? How do you show them you appreciate them?
Many business owners and marketers don’t realize just how important their loyal customer base is.
Here you will learn all the latest customer loyalty statistics that will blow your mind. Read on to find out what consumers really want.
These stats might even make you rethink your whole marketing strategy!
Customer loyalty statistics 2020
- 33% of US customers consider switching companies immediately following a single instance of poor service. The number increases to 60% after two or three instances. (HubSpot)
- About 50% of loyal customers have left a company for a competitor who is more relevant and better satisfies their needs.
- 90% of consumers are likely to purchase more than once.
- Most companies prioritize customer acquisition more than customer retention.
Not seeing customer retention as a priority is a mistake. Here is why:
- 60% of loyal customers purchase more frequently from their preferred companies, and 50% make more purchases with them.
- Customers with an emotional relationship with a brand have a 306% higher lifetime value. Plus, they will recommend the company at a rate of 71%, which is way more than the average 45%.
- Emotionally-connected customers annually spend about $699 with a company. In comparison, regular satisfied customers spend only about $275.
- On average, a customer spends 67% more in their third year than their first year with a business.
- 77% of customers have maintained loyal relationships with their chosen companies for 10 or more years.
But when is a customer considered loyal to a certain company? These customer loyalty statistics will give you the answer:
- 37% of American shoppers consider themselves loyal to a company after at least 5 purchases.
- 26% of customers feel more loyal to a brand, while 21% – to products.
Brand loyalty is leading but that doesn’t mean you should neglect the quality of your products.
- 80% of consumers gradually gained loyalty for a brand over time, thanks to good customer and brand experiences such as excellent products, service, reviews and advice.
Customer experience is incredibly important.
- 69% of customers spend more on a company with better customer service.
- 93% are likely to make repeat purchases with businesses who provide excellent customer service.
Meanwhile, poor customer service can lead to many lost prospects, since people love sharing their thoughts with family, friends and even strangers.
- 81% trust recommendations from family and friends over those from companies.
- On average, satisfied US customers will share their positive experiences with 11 people.
- On the other hand, they will share their negative experiences with about 15 people!
- 35% post negative comments about companies on social media, but the good news is that 53% post positive comments.
All these customer loyalty stats are a good incentive for businesses to work to improve their customer service.
Loyalty program statistics 2020
- More than 90% of companies have some kind of loyalty program. (Forbes)
- There are 3.3 billion loyalty program memberships in the US.
Incredible! But that’s only logical. Everyone wants to feel special and be rewarded for staying loyal. It is increasingly popular for businesses to create loyalty programs.
Here is what consumers want in this regard:
- 50% admit their primary reason for joining a loyalty program of a brand is to earn rewards on everyday purchases.
- 37% are willing to pay to upgrade to an enhanced tier of a loyalty program.
- 29% want more interesting rewards; 46% want gifts and early access to sales.
- 79% of Americans are more likely to join a rewards program if it doesn’t require them to carry a physical card.
- The most common issue (of 31% of consumers) with loyalty programs is that the rewards expire too quickly.
These loyalty program stats show that consumers want to be spoiled with personalized experiences and shown they are truly appreciated. So get creative and make them feel like VIPs because you can only benefit. Just look at that:
- Loyalty program members spend 27% more when the brand establishes a positive emotional connection.
However, there are some more customer loyalty statistics that you should know before you go.
- 71% of Americans are less likely to join a rewards program if it collects personal data like address and account information.
- 58% are less likely to join a loyalty program if they need to download an app.
- 87% are open to brands monitoring details of their activity if it brings them more personalized rewards.
- 75% would engage more with loyalty programs if they are easily accessed from a smartphone.
As usual, you can’t beat the competition if you don’t provide a good mobile experience for consumers.
To sum up
Now that you’ve read all these customer loyalty statistics, one thing is certain:
You need to take regular care of your existing customers. Sure, finding and reaching new customers is important, but retaining your current ones is just as necessary if you want your business to prosper.
Take advantage of the customer loyalty statistics we have gathered for you and improve your customer retention strategy even further so that both you and your customers are happy.
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