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)

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