
INTERESTING STATS AND FACTS ABOUT CUSTOMER LOYALTY & RETENTION
Customer relationships are now the only remaining source of competitive advantage, which makes earning customer loyalty mission-critical in the age of the customer. Let’s look at a compilation of some interesting statistics around customer loyalty.
Editor’s Choice
- 57% of consumers spend more on brands to which they are loyal. (Accenture)
- A 5% increase in customer retention correlates with at least a 25% increase in profit. (Bain & Company)
- Customer acquisition cost (CAC) for B2B and B2C companies have risen by almost 50% in the last 5 years. (Profit Well)
- 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with brands. (Bond)
- Merchants lose $29 for every new customer acquired compared to just $9 back in 2013 (businesswire.com)
Customer Loyalty
- 75% of consumers will favor a brand if there is a loyalty program. (KPMG)
- 43% of customers spend more on brands that they are loyal to. (Fundera)
- Customers with an emotional relationship with a brand have a 306% higher lifetime value. (Motista)
- 60% of loyal customers will purchase more frequently from their preferred companies. (Hubspot)
Customer Engagement
- If your business is not doing enough to engage your customers, 54% will consider dropping you. (Fundera)
- 82% of customers feel more positive about a brand after engaging with personalized content. (Demand metric)
- About 80% of businesses still rely on email marketing to assist with maintaining their client retention rate. (Emarsys)
- Customers engaged in a brand’s loyalty program will spend 12-18% more each year. (Fundera)
- 66% of Loyalty program members modify the amount they spend in order to maximize points. (Paystone)
Customer Retention
- 82% of business leaders agree that customer retention is way cheaper compared to customer acquisition. (eConsultancy)
- 30% – that is how high the customer churn rate can be in some global markets. (Deloitte)
- Your chances of selling to a new customer are just between 5% and 20%, whereas that chance rises to 60% or 70% for existing customers. (Forbes)
- Businesses in the US lose $136.8 billion annually due to poor customer retention. (Call Miner)
- Across all verticals, 75% of loyalty members are brand loyalists and won’t switch. Engaged members are the least expensive and most profitable (Think Impact)
Customer Experience
- About 50% of loyal customers have left a company for a competitor who was able to stay more relevant and better satisfy their needs. (InMoment)
- 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. (Hubspot Research)
- 62% of consumers are willing to spend more if their shopping experience is customized to their interests. (Business Wire)
- 75% of US consumers have changed their shopping habits. The reasons cited were availability, price, and convenience. (McKinsey)
- 53% of customers stating getting good value was the top reason people patronize a business. 30% stated they liked the benefits, rewards, and privileges of “a preferred company’s loyalty program.” (PwC)
- Customers are 8x as likely to be satisfied with a loyalty program if it feels personalized to them. (Forbes)
- Customers, around 72%, would switch to a brand’s competitor after a negative customer service experience. (Hiver Research Report)
Revenue
- 80% of your company’s future revenue will come from just 20% of your existing customers. (Gartner)
- Loyalty leaders grow revenues roughly 2.5x as fast as other companies in their industries. (HBR)
- After implementing a loyalty program, the average order quantity a business receives can go up by 319%. (Incentive Solutions)
- Loyalty schemes can help increase revenues: 50% of consumers changed their buying behaviors to reach a higher tier. (Invesp)
Advocacy
- Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. (Bond)
- Emotional engaged customers will recommend the company at a rate of 71%, rather than the average rate of 45%. (Motista)
- 81% of customers trust recommendations from family and friends over those from companies. (Hubspot research)
- Happy American customers will share their positive experiences with and refer about 11 people. (American Express)