Attracting new customers to try your product or service is one way to grow your business. Meanwhile, retaining and making previous customers stick is another crucial aspect of growing a company.
Today, price is no longer the lone deciding factor for consumers. Instead, it is now about who offers the best products alongside the best customer experience. That led to a 2020 report showing that 72% of customers worldwide are loyal to at least one brand.
Below are more customer loyalty statistics that will reveal how crucial it is in 2023.
Editor’s Choice:
- Customers spend 43% more on brands they are loyal to compared to those they are not.
- The overall profitability of a business can increase by 25% to 125% when its churn rate is reduced by 5%.
- 89% of customers say they will remain loyal to a brand if it shares similar values.
- 54% of customers will consider leaving you if they need more engagement.
- The chances of selling to a new customer are between 5% and 20%, while the chances increase to 60-70% for existing customers.
- If a brand offers prizes to loyalty program participants, 75% of consumers will favor it.
- 93% of your customers would return for another purchase with your brand if their previous experiences were good.
Mind-Blowing Customer Loyalty Stats
Customer loyalty is an essential aspect of a business. Without loyal customers, a company will barely survive.
| 💡Did You Know? Loyal customers are likelier to buy and avail high-margin products and services. |
Below are statistics on customer loyalty that will show how important this factor is in a business.
General Statistics on Customer Loyalty
Rewards given to loyal consumers benefit businesses by helping them retain more customers.
Here are more statistics about customer loyalty that show its effect across various industries, programs, and markets.
1. Customers spend 43% more on brands they are loyal to compared to those they are not.
(Zippia)
Customers spend more on products they are loyal to despite the availability of reliable alternatives. Moreover, 43% of customers do not mind paying extra because they already trust the brand’s product or service.
By doing that, customers are assured they will have the best customer experience, as they have proven before.
2. 56% of customers will abandon a brand that doesn’t share their beliefs.
(Clarus)
The 2022 facts about client loyalty confirm that over half of all customers care about how your beliefs align with theirs.
A brand’s beliefs will not matter if customers experience the following:
- Receiving better deals (56%)
- Giving them quality goods/services (52%)
- Offering convenience (37%)
Although businesses can satisfy their clients in several ways, this data shows companies with the same values as their clients are more likely to succeed.
3. Brands that don’t prioritize customer engagement lose to their competitors by 54%.
(LinkedIn)
In business, the way people make purchase-related decisions are influenced by emotions. Customer engagement entails building that emotional relationship with your customers.
According to the 2022 Customer Loyalty Statistics, engagement includes interaction with the following:
- Funny memes
- Personalized discounts or gifts
- Responsive blogs and social media posts
Either way, the goal is to keep your customers highly engaged with your brand while making more sales, improving brand loyalty, and increasing brand awareness.
| ✅ Pro Tip One way to boost customer engagement is by being active on social media and understanding its functions. For instance, learning Instagram’s algorithm can lead to follower growth and increased engagement. |
4. Sales odds to existing customers are at 60 to 70%.
(Invesp)
The figure above is far higher than sales chances for new clients, which are only 5% to 20%. Then, only 2% of web traffic converts on a customer’s first visit to a brand’s website, as consumers usually don’t buy on their first encounter with a brand.
That said, your marketing and brand message must win them over first. When you have earned your client’s trust, the chances of selling to them increase from 60% to 70%.
5. 93% of customers with excellent brand experience are likelier to repurchase.
(Hubspot)
This statistic proves excellent customer service is how brands stand out in such a vast market. Dependable customer service also helps establish attachment with customers, leading to gaining their loyalty, leading to gaining loyal customers.
Customers today face a selection dilemma, and companies must go out of their way to impress them so they return to your brand. Here’s how powerful customer experience can be:
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by u/kitskill from discussion What brand are you loyal to and why?
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6. 50% of your customers will tell their friends about your business.
(Clarus)
Reports show that half of a brand’s customers are happy to spread the good word about your business and, thus, bring in new people.
Then, 60% of consumers claim they trust recommendations from friends, family, and other clients.
This reflects how excellent reviews invite many new customers, but negative experiences can also be broadcast. If your brand receives any bad reviews, ensure to address them accordingly.
7. 87% of Americans will exchange their privacy for a better customer experience or reward.
(Bond)
Customer loyalty stats show that consumers love personalization so much they are ready to give up some form of privacy. Proving that 87% of people in the US are ready to provide their data in exchange for a personalized brand experience.
You can also offer them customized coupon codes for an item they were interested in or even acknowledge their previous transactions with your brand.
| ⌛ In a Nutshell Personalization could address them by name in your email newsletter. You’ll see how effective this channel could be, considering there are over 4 billion email subscribers worldwide. |
8. 77% of customers have stayed loyal to a specific brand for at least 10 years.
(In Moment)
According to the statistic above, people trust a particular brand for an extended time because of consistency, leading to 77% of loyal customers for at least 10 years.
Before settling with your brand, your customers have scoured the market looking for a brand that “gets them.”
| 📝 Note “Getting them” means having relevant marketing messages and outstanding customer service. You can win a customer’s loyalty if you effectively keep the qualities that appeal to them and continuously evolve. |
9. 55.3% of consumers will remain loyal to your brand if they love your product.
(Yotpo)
Apart from the statistic above, further data shows poor product quality is the main reason 51% of customers abandon a brand—meanwhile, 23.5% leave due to poor customer service.
10. According to 37% of consumers, it takes at least 5 purchases before they consider themselves loyal.
(Yotpo)
Most consumers don’t become loyal on their first encounter with a brand. 37% of the customers must be back at least 5 more times before considering them loyal.
Once they become loyal customers, they will do the following:
- Spend more
- Refer your brand to others
- Join your brand’s loyalty programs, even without having to convince them
Although it can be challenging to keep customers returning often, the effort is worthwhile.
11. 57% of customers claim they’ll only stay loyal to a brand if their negative review gets a proper response.
(Medium)
As a brand owner, negative reviews or complaints might sting. However, they can also be a chance to gain loyal customers.
Admittedly, a complaint can lead to a brand losing a customer. Data on product reviews reported that about 97% of your customers read reviews (both old and new), and having an unanswered review can kill your reputation fast.
| ⌛ In a Nutshell Do not be immediately disheartened by negative feedback. Instead, take it as an opportunity for redemption and respond to it. That can lead to 57% of customers becoming loyal after their negative review gets addressed. |
Customer Loyalty Program Statistics
Each business has implemented customer loyalty programs as a marketing strategy. It encourages customers to make additional purchases in exchange for bigger discounts.
They also come with an incentive or reward, leading to the following positive results:
- Improving customer retention
- Boosting business revenue
- Increasing customer satisfaction
- Collecting customer data for personalized targeting
Here are some statistics on customer loyalty programs that you should know:
12. 75% of consumers will favor a brand with a loyalty program.
(PR News Wire)
Now that you know 75% of customers prefer brands with loyalty programs, you must let them know you offer that initiative.
An excellent way to make this happen is first to collect enough customer data, enabling you to send personalized messages to them.
That way, you successfully strengthen customers’ emotional connection with your brand.
| ✅ Pro Tip Aside from the rewards that come with loyalty programs, consumers want to feel important, and these loyalty programs make them think that the brand gives them special treatment. Try, for example, sending personalized birthday messages to customers in your loyalty programs each year, coupled with some discounts or freebies. |
13. 7 out of 10 customers will recommend a brand with a loyalty program.
(Invitereferrals)
According to the latest loyalty program statistics, 70% of customers will put in a good word for your business if it boasts a loyalty program. That means rewards help you retain your existing customer base and make them more willing to spread the word about you.
Some customers wonder how “generous” brands profit from such a system when offering loyalty programs. Well, here’s a simple explanation for that:
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14. 56% of brand loyalty programs incorporate gamification theory.
(Bond, Advertisingweek)
According to loyalty program stats, introducing game mechanics into a loyalty program have the following aim:
- Increasing revenue
- Improving customer engagement
- Encouraging customer participation
A loyalty program is one of the most effective ways to induce participation and engagement, making it an ideal approach for brands nowadays.
15. 61% of your customers hope you interact with them more through offers and surprise gifts.
(Merkle Inc., Outgrow)
Aside from being loyal to your brand, your customers also want to save money. Who wouldn’t want to, right?
If you offer discounts now and then or send customers surprise gifts as a reward for their loyalty, your business will benefit immensely.
16. Implementing customer feedback systems will incite brand loyalty in 77% of customers.
(Forbes)
Previous statistics already discussed the harmful effects of leaving negative customer feedback unanswered. The statistic mentioned above further proves the importance of getting back to customer feedback.
Ultimately, the more you recognize their input, the stronger their loyalty will grow.
17. 46.4% of your loyalty program customers expect you to grant them early access to sales.
(Yotpo)
As loyal customers, they expect to first know about and gain early access to sales the brand is having. Doing so will make them feel that you prioritize them over those not members of the loyalty program.
According to statistics on customer loyalty programs for improving sales, other perks that loyal customers expect include the following:
- Discounts
- Coupon codes
- Personalized messages
- One-on-one conversations
- Early access to new products
18. Customers engaged in a brand’s loyalty program will spend 12% to 18% more annually.
(LinkedIn)
As mentioned earlier, customers are willing to spend more for a brand that they are loyal to. In addition to that, a brand with a loyalty program sees customers that spend 12% to 18% more annually.
Additionally, as discussed above, using gaming mechanics in customer loyalty programs ensures high client engagement. That ultimately leads to more revenue and customer retention.
19. US membership increased from 3.8 billion to 16.6 billion in 2022.
(PYMNTS, Statista)
Loyalty programs in the US have become a norm due to the high competition rate among retail brands.
The most popular loyalty programs in the US are the following:
- Groceries
- Drugstore
- Automotive
- Airline sectors
- Dining and apparel
- Consumer electronics
If your business is not offering rewards to customers, you will most likely miss out on improving your revenue.
20. 59.5% of consumers are likely to become members of their favorite brand’s loyalty programs.
(Yotpo)
Everyone wants to save, even if it’s just a little. That’s why most customers join loyalty programs primarily to receive savings and discounts.
However, fondness also plays a part in customer loyalty. Statistics show that over half of customers will join a business’s loyalty program because it’s their favorite brand.
21. 53.6% of organizations aim for more emotional loyalty programs.
(Antavo)
For the most part, loyalty programs have been transactional. However, a trend has been growing to incorporate an emotional appeal.
Over half of all companies using such programs plan to take a more psychological approach. Currently, only 20.7% of them have taken that route.
Emotional loyalty programs make customers feel special and unique. Ultimately, this kind of loyalty helps develop a relationship between a customer and a brand.
Customer Loyalty Industry Statistics
The following are some customer loyalty industry statistics to show you some leading brands with loyal customers worldwide.
22. 61% of product searches start from Amazon.
(eMarketer)
Amazon has become the most preferred platform for product searches, making up 66% of the total product searches, while search engines account for 20%.
Customers prefer to read product reviews from Amazon, wherein they can grasp the quality of a product through buyer’s comments.
| 🎉 Fun Fact Out of the many product searches on Amazon, over 90% of online shoppers in the US have bought something from the website. That means the majority of the queries lead to purchases. |
The rest of the product searches are split among the following:
| Platform | Percentage of people conducting a product search |
| Brand websites | 4% |
| Retailer websites | 4% |
| Marketplaces | 3% |
| Social media | 1% |
| Others | 1% |
23. Customer acquisition cost (CAC) for B2B and B2C companies has risen by almost 50% in the last five years.
(Profit Well)
This statistic means B2B and B2C companies constantly extend their budgets to attract more customers. Their funds go to sales and marketing sectors which may include customer loyalty programs.
Higher CAC does not necessarily mean a decline in business since companies can grow and allot bigger budgets for further development. It will only be considered declining if the Customer Lifetime Value (CFV), or the profit generated from customers, is higher than CAC.
24. Starbucks’ rewards program was still at the top in 2022.
(Antavo, The Motley Fool)
The latest customer loyalty statistics crown the giant coffee house’s rewards program as the most successful, which boasts about 25 million active members.
In a recent survey, most participants voted for Starbucks’s loyalty program to grow significantly in the next three years. Other companies with notable rewards programs were:
- Sephora
- Amazon
- Nike
- PC Optimum
This data proves that developing a closer connection with customers will positively affect loyalty and persuade them to stay with them rather than go to a competitor.
25. Most industries’ average customer retention rate is below 20%.
(Hubspot)
Industries such as e-commerce have an average retention rate of 38%. Meanwhile, the media and finance industry has an average of 25%.
Others, like the SaaS and apps/software industries, have an average of 35% and 20%, respectively.
Then again, the primary cause of client churn is poor customer service. When your customers feel they are not valuable to you, they’ll switch brands automatically.
26. Amazon leads the way as the number one brand in terms of loyalty in the US.
(Marketing Charts)
Some features that earned the brand its position are:
- Refund policy
- Quality products
- Loyalty programs
Ultimately, customers’ commitment to Amazon is primarily motivated by a convenient and satisfying purchasing experience and trust.
27. iPhone users have the highest percentage of loyal customers in the smartphone industry.
(Sell Cell, Statista)
According to Apple customer loyalty statistics, over 90.5% of Apple mobile customers plan to stay loyal to the brand.
Here are a few reasons iPhone users are loyal to Apple:
- Simplicity
- Smooth refund policy
- Unique customer experience
- Excellent customer support (both online and offline)
There’s more to that. Apple pays so much attention to customer feedback to guide their decision-making on newer products, positively promoting their new line of devices.
That said, it’s obvious that Apple’s whole marketing is tied to customer satisfaction, and their clients love it.
28. 57% of your customers are likely to engage with your loyalty programs through mobile devices.
(Bond Brand Loyalty)
Mobile is fast becoming the new norm as it generates 52% of the web Internet traffic. It is fast, flexible, convenient, and capable of carrying out most activities on a PC.
Big brands like Google, LinkedIn, Facebook, and Amazon all know this. That is why they already have a mobile-first policy.
That said, you will miss many deals if your business is not optimized for mobile.
Customer Retention Statistics
Many companies focus more on customer acquisition, while some focus on customer retention.
The statistics below will shed light on the importance of customer retention.
29. 82% of business leaders agree that customer retention is cheaper than acquisition.
(Help Scout)
As the stats have been implying, you only need to provide an excellent customer experience to convert a customer into a loyal one. However, retaining such loyal customers will hinge on providing continuous value over the years.
The data shows customer retention is way cheaper than the excessive amounts spent on brand awareness and adverts to acquire new customers.
30. 80% of businesses utilize email marketing for customer retention.
(Bizibl)
This data emphasizes the importance of personalization in customer retention strategy. Moreover, it reveals that email marketing has been the go-to guy for personalized campaigns over the years.
| 💡 Did You Know? Other data sets show that email marketing offers the highest ROI compared to other content marketing channels, averaging $40 for every $1 spent. That’s because you can smartly tailor email marketing campaigns that will both engage and help you increase customer loyalty over time. |
31. The overall profitability of a business can increase by 25% to 125% when its churn rate is reduced by 5%.
(LinkedIn)
The churn rate refers to the frequency at which a business changes customers.
Based on this data, a reduced churn rate implies an increased retention rate, and such a move directly impacts a business’s revenue.
Companies focusing more on customer acquisition suffer from a high churn rate due to a need for ideas, engagement, or programs to keep these customers returning.
32. 42% of your customers will stop using your brand if your customer service has no real-time customer support line.
(Fundera, Zendesk)
With the fast-paced technological advancement, consumers now expect information flow to be quicker, more accurate, and readily available anytime. Nobody wants to wait a few minutes or hours while a supposed customer service agent searches for information.
Now, more than ever, data must be passed across within a few seconds, all in real-time. That’s why nearly half of a brand’s customer base requires a real-time customer support line. Otherwise, they will stop using the brand’s product or availing of its services.
33. 47% of your customers will defect to another brand after just one bad customer experience.
(In Moment)
The statistic above prove that customer experience is not a one-off thing. To succeed with customer experience, you must make it a way of life for your business and constantly strive to satisfy your customers.
Customer satisfaction is a continuous process that never ends. The day your business stops delivering excellent customer service, you start losing a percentage of your loyal customers.
| 💡 Did You Know? Successful brands operate by prioritizing continuous customer satisfaction. For instance, Apple emphasizes design and user experience while providing quality products. No wonder why Apple sees around $300 billion in annual revenue |
34. 62.1% of companies claimed their loyalty programs engaged their clients during the pandemic.
(Antavo)
Familiarizing yourself with the most recent customer loyalty stats is crucial when researching ways to grow your business.
During the pandemic, 62.1% of brands shared that their loyalty programs kept their clients engaged with their brand, even more than they already did before.
Over 60%, however, have yet to make any new developments during the same period but were left to reap the benefits their programs were already bringing.
That said, when researched and appropriately executed, loyalty programs retain existing customers, bring in new ones, and increase the company’s benefits and growth.
35. Businesses in the US lose $136.8 billion yearly due to poor customer retention.
(Call Miner)
That data proves businesses should focus on customer retention and use free traffic with higher conversion possibilities. Otherwise, the loss will run up to billions of dollars yearly.
Ultimately, this demonstrates how crucial customer retention is to expanding the company’s long-term ability.
Wrap Up
According to the statistics above, customer loyalty is non-negotiable during adverse competition. Moreover, you will benefit significantly by incorporating excellent customer service and loyalty programs into your clients’ experience.
If your business is not bent on increasing customer loyalty yet, there’s no better time to start now.
FAQs
What is business customer loyalty?
Customer loyalty refers to a customer’s propensity to do business with you again. This is due to consumer happiness, which outweighs availability, pricing, and other factors influencing purchasing decisions.
What is the importance of customer loyalty on profitability?
Customer loyalty boosts profitability by encouraging repeat business, lowering a company’s running expenses, establishing a reasonable price premium, and generating referrals.
Why is customer loyalty important to a business?
Loyal consumers will spread the news about your business. Whether positive or negative feedback, it helps a company make a name on the market.
Jacquelyn Bulao, specializing in HR and networking, was a TechJury team member from June 2020 to October 2022. As the bridge between contributors and the website, Jacquelyn plays a vital role in ensuring smooth communication and collaboration. With her quick learning abilities, she delved into optimizing business processes for the TechJury team, streamlining operations, and enhancing efficiency.