Taking care of your customers should be a priority if you want your business to survive and prosper. All research conclusively indicates that customer loyalty is one of the main engines of driving a venture forward. That’s why we’ve prepared some of the most vital customer loyalty statistics to help you adjust your marketing strategy to make sure your clients are happy and keep coming back.
What are the numbers behind a good loyalty program and what does it mean for a business to take more care of their existing clients? Read on for all the essential information and use it wisely.
Customer Loyalty Statistics (Editor’s Choice)
- The difference between a loyal and an ordinary customer is $424 annually.
- 90% of Americans are loyal to US brands.
- 85% of loyal clients will refuse to go to a more affordable competitor.
- 97% of loyal customers will become even more loyal if companies listen to their advice.
- 20% of the most loyal clients make 80% of the company’s profit.
- Investing in loyal customers and increasing their loyalty can lead up to a 95% rise in profits.
- Investing in loyal clients is 25 times more affordable than acquiring new ones.
General Statistics About Customer Loyalty
1. Being a part of a program would secure the loyalty of 79% of the clients.
In 79% of the cases, clients are going to stay loyal to a brand or a business if it has a loyalty program. This is from research based on over 55,000 consumers across more than 900 programs in more than 20 markets.
2. 73% of consumers are more likely to recommend a brand if it has a good loyalty program.
These loyalty program statistics show that a loyalty program will not only help you keep your existing customers, but gains new ones too. This particularly important in this day and age when word-of-mouth marketing sometimes yields better results than traditional advertising.
3. The average American has 14.8 loyalty cards.
The average American participates in just under 15 loyalty programs but only actively uses 6.8, according to customer engagement & loyalty stats. That means it’s not enough to just put that card in your clients’ hands, you need to do more if you want to see any benefits from it.
4. By the year 2025, the loyalty market will be worth $6.96 billion.
With an expected 16.9% growth over the next 5 years, the loyalty market is projected to reach $6.96 billion by the year 2025. In 2019, the market was worth $1.9 billion.
(MarketWatch, Orbis Research)
5. 68% of women were at least once in a loyalty program.
Customer loyalty program statistics show that women are more valuable consumers, with 68% having at least once participated in a loyalty program. This compares to 59% for men.
6. The Baby Boomer generation is most likely to be a part of a loyalty program.
71% of those aged between 56 and 65 have been a part of at least one loyalty program in their lives. That compares to 57% for the 25-34 age group, and 43% for those aged between 18 and 24.
7. Banking, gas stations, and convenience stores loyalty program clients are the most satisfied.
Increased loyalty through customer satisfaction statistics show that credit card loyalty programs make people the most satisfied. Those are followed by gas cards and cards from convenience stores, with customers stating they are very satisfied with what these businesses offer them through the loyalty programs.
8. If the company needs just a name and phone number, 76% of clients would join its loyalty program.
A survey on behalf of Wilbur showed that Americans will gladly join a loyalty program if they don’t need to write down more than their name and phone number in 76% of the time. At the same time, 71% will refuse if the company requests personal information.
9. Free shipping is a growing factor in loyalty programs.
Customer loyalty statistics show that ecommerce web sites are now offering free shipping as a part of their loyalty programs. Nearly half of retailers now use this as a benefit for their loyal customers. The best part is that clients are loving it. Last year this number was around 39%.
10. 31% of consumers would join a paid loyalty program if their preferred brand offered it.
That’s nearly one-third of customers who would love to join a paid loyalty program, but the brand they’re spending money on simply has none. 65% of those that already belong to a loyalty program, plan to join another one, according to customer loyalty program stats from 2019.
11. The more loyal a customer is, the more valuable for the brand they are.
If a person buys something, there’s a 27% chance they’ll do it again. But if they do it again, the chance to do it once more rises to 45%, and to 54% after the next purchase. Every purchase lifts the loyalty value.
12. Loyal customers are 70% more likely to convert through an ad.
A regular customer targeted by a commercial will probably convert in 1% to 3% of the time. Customer loyalty stats meanwhile show that this number is up to 70% for loyal clients. This means that targeting ads towards your existing customers is a much better idea.
13. Walmart and Amazon have the most loyal customers in retail.
Every 5th American is loyal to Walmart. Research of over 6,600 people showed that 1,262 are most loyal to Walmart. Next on the list was Amazon with 854 mentions. Next on the list are Target, Apple, Kroger, Costco, McDonald’s, Coca Cola and Nike.
14. Target has made one of the biggest leaps in customer loyalty.
In 2018, this company was not among the most successful in the customer loyalty department. Just a year later, they were the third retailer with the most loyal customers. Target customer loyalty statistics show that their new Target Circle program has made wonders in a single year.
15. 93% of customers say that the service is crucial for their loyalty.
Customer loyalty is not going to go too far if you employ people who are not treating your clients with respect. Almost everyone will quit going to the same place if the owner employes a person who’s not treating the customers properly, according to customer satisfaction statistics. This goes for absolutely every level — from call service agents to CEOs.
16. 85% of loyal customers will stick to their preferred brand.
The majority of customers say that if they are satisfied with the loyalty program they are in, they will opt to stick to it. This is valid for the cases where a rival offers a cheaper product or a service.
17. In 68% of the time, customers will stop being loyal for no reason at all.
An interesting survey by Rockefeller Foundation explains that people don’t really have to be dissatisfied to drop a brand. Customer brand loyalty statistics show that 68% of consumers who moved their business to another place did not have a specific reason for the move. 14% did it because their demands were not met, 9% cited relocation, and another 9% dropped brand did it because the competition offered a better deal.
18. 77% of loyal bank customers trust their banks to take care of their finances.
Bank customer loyalty statistics show that people who are loyal to a bank will have no problem trusting it to take care of their finances in 77% of the cases. These clients are also ready to take advice and handle their money as the bank’s experts suggest.
19. Nine out of 10 Americans are loyal to US brands.
Patriotism is a big issue for Americans, with 90% saying that they prefer buying from their favorite US brands than foreign ones. The industry that is most affected by this trend is electronic devices with 79%, shoes with 65%, and 59% healthcare, according to customer loyalty industry statistics.
20. 15% of paid loyalty program customers expect benefits every day.
Research by Clarus shows that 15% of customers expect benefits every day if they’re a part of a paid loyalty program. 24% expect a perk every few days, and 22% at least once a week.
21. Around 74% of people are members of a loyalty program.
The same research by Clarus showed that 74% of surveyed consumers are a part of some free loyalty program. Customer statistics show that another 54% are a part of some paid loyalty program.
22. Around 37% of Americans consider themselves loyal after 5 purchases.
It takes 5 times for a customer to spend money in a certain shop or business to consider themselves loyal to a brand. That is true for 37% of Americans. For 33%, it takes 3 times, and 12.35% think that more than one purchase is enough to call themselves loyal customers.
23. A loyal customer who’s happy will share their positive experience with 11 people.
The facts on customer loyalty show that a happy customer will share their experience with an average of 11 people. An unhappy customer who had a negative experience with some brand will make sure that about 15 people hear what happened to them with a certain business.
24. When disappointed, 35% of customers will rush to social networks to spread the word.
An average American will write on social networks about a negative experience with a certain business in 35% of the cases. But, if the experience was positive, 53% will do it, customer loyalty facts demonstrate.
25. The annual difference between loyal and standard clients is $424.
An average loyal client to a company will spend $699 throughout the year while the standard client will spend only $275. That’s a difference of $424 per person every year.
26. 97% of clients will become more loyal if they see the company took their feedback seriously.
This is a win-win situation. Almost every customer wants to see that the company they are being loyal to have taken seriously their complaints and implemented their ideas. Customer loyalty b2b statistics show the same thing with b2b customer relations.
27. Emotionally attached clients will buy the same brand 82% of the time.
According to a study made by Capgemini, clients who feel an emotional attachment to a certain brand will always spend money on it no matter what the competition has to offer. Another 70% are ready to spend up to 100% more than planned with those brands.
28. Americans are more loyal to brands than products.
For example, the average American is more loyal to The Coca Cola Company than to their most popular drink. In fact, customer loyalty statistics in the US show that 26% of people are loyal to brands, while 21% are loyal to products.
29. 77% of US customers say they’ve held a relationship with a brand for more than 10 years.
The companies lucky to have more of these people are truly successful. 77% of Americans say they’ve been doing business with one company for more than 10 years. For Millennials, in particular, the number stands at 60%.
30. 61% of people will make a detour for their favorite brand.
Loyalty goes a long way. Around 61% of US consumers will gladly make a detour just to go to their favorite store. Millennials are even more likely to do it with 70%, according to brand loyalty statistics.
31. For 33% of customers, it takes just one mistake to consider taking their business elsewhere.
Every third American will consider going to another place to do business if they experience just one mistake by the company. That’s completely normal as customers want the best there is for the money they worked hard to earn.
32. Making customers feel like a part of the family is the best tactic for building loyalty.
There are many ways to boost the loyalty of your customers. WordStream’s customer loyalty visual stats show that the best way to do it is by making clients feel they are a part of the family. Holiday cards, asking questions, and paying attention to their needs are crucial. Rewards are also a great strategy.
33. Acquiring new clients is 25 times more expensive than investing in loyal ones.
It’s 25 times more expensive to make strategies, marketing campaigns, and chasing new clients that it is to simply invest in the happiness of your already existing and loyal clients, according to stats on customer loyalty investment. The formula that makes this number takes into consideration the money you need to spend and the return on investment. As you probably already know, loyal customers generate 60% more profits than new ones.
34. Getting special offers that standard customers can’t have is important for 59% of loyalty program members.
Just under 60% of members of a brand’s loyalty program expect to get special offers that standard clients can’t get access to, customer loyalty program facts show. Whether it is getting their hands on a product before the official release, off-stock availability, or something similar, it’s important that the company makes a move that will show its dedication to its loyal customers.
Why is customer loyalty important?
Customer loyalty is mainly important because the Clients who are loyal to a brand or a company tend to spend much more money than regular customers. That’s basically why customer loyalty is important — chances are that a person who received good service at some business and was satisfied by it is going to make another purchase again. This is backed by the Pareto 20/80 rule that says that 20% of customers make 80% of the profits.
How much more do loyal customers spend?
Based on all the facts, having more loyal customers is better than having lots of first-timers. The average loyal customer will spend $424 more every year than the regular or new client. Simple math here tells you that every year, you can raise your sales by $4,240 if you have 10 more satisfied customers.
Do loyalty cards increase sales?
Yes, loyalty cards and loyalty programs are increasing sales, but you need to make a good plan and research your target audience before you start the marketing campaigns. The average American has almost 15 cards in their pocket but uses less than half of them. To increase sales, loyalty cards must be tailored to the real needs of clients.
How big is the loyalty market?
At the moment, the market is worth around $2 billion and is projected to increase to nearly $7 billion by the year 2025.
There are lots of ways to make people involved and become loyal to a brand. Think about Amazon, Apple, Target, who have millions of customers and most of them are happy with the products they are purchasing over and over again. While they work on a much larger scale, customer loyalty statistics show that the basic principles of client satisfaction can be applied for pretty much any business to drive sales.