Interesting Customer Loyalty Statistics To Help Learn About Customer Retention & Brand Loyalty

When consumers buy essentials, they do not only focus on the product’s function and form. Brand name matters priorly. Consumers have gained more power and have started influencing others to buy from the brand they prefer the most.

Never before did people have any impact on what others buy but nowadays the modern world has started influencing each other which makes customer loyalty more important than ever. Every brand focuses on getting a repeat flock of customers and because of that, brands started improving their wares. The quality of goods has started becoming less important than the customer service and recommendations of users.

Hence, due to the major importance of customer loyalty & retention, the brands follow word-of-mouth recommendations. You should know how customer loyalty statistics affect brand loyalty in e-commerce and technology as well as the factors that influence it.

Here we will discuss how customers are related to the retail industry and how current stats explain it. Customer loyalty analytics will help you understand how retention affects sales conversion rate & how customer loyalty turns into effectively influencing sales.

Customer Loyalty Statistics: Key Findings

1. 54.7% of customers are loyal to 1 to 5 brands according to the latest customer loyalty statistics
2. The customer loyalty analysis states that 31.1% are loyal to 6-10 brands
3. 8% of customers are loyal to 10-20 brands & 3.6% are loyal to more than 20 brands
4. According to the 2020 reports, 2.7% of customers are not loyal to any brand
5. There are 42% of customers are willing to try new brands whereas 8% do not do that
6. The customer churn rate decreased by 5% whereas the profitability boosts by 25% to 95%
7. Rather than building up new sales, 73% of companies still depend on current consumers
8. 97% of customers’ loyalty is towards at least one of the brands in 2022
9. The customer retention statistics for industries are 50% or less
10. From the average traffic visit on the website, only 2% convert into customers
11. 34% of customers only trust the brand they have experienced
12. The companies which offer rewards are supported by 75% of consumers
13. 60% of companies believe that employee performance benefits customer service
14. 15. 29% of customers roam before they shop & 31% of customers are unlikely to switch brands
15. 61% of US consumers change their brand preference due to prices
16. 55% of customers stop shopping from a brand if they do not get a feedback reply
17. 71% of companies believe their loyalty program is different from their competitors
18. 44% of customers easily replace one brand’s loyalty program with a competitor
19. Only 1% of consumers believe that the marketers meet their expectations

Why is Brand Loyalty Important?

To achieve a significant increase in profits, it is important to achieve customer loyalty. There are loyalty program statistics that prove how brand loyalty can help the business lead its existence in the market.

“Why brand loyalty is important?” is a basic question that runs across the retailer’s mind. To avoid the increasing churn rate of customers and stay mindful of customers’ queries as well as preferences, retailers must know that brand loyalty is important. Following are the customer loyalty statistics which explain the importance of brand loyalty.

• According to the 2021 loyalty statistics report, 81% of customers form relationships with the brand they shop from.
• 43% of customers are ready to pay more to the brands they are loyal to
• 65% of customers avail less than even half the benefits of the loyalty programs that they enroll for.
• 81% of customers shop from the most trusted brands.
• Most of the brands see that 52% of customers shop from loyal brands.
• Customers might get cheaper options but 56% of them purchase from loyal brands only.
• Compared to regular orders online, a loyal customer pays 33% more while making a purchase.
• 60% to 70% of companies believe that selling to existing customers is easier

Customer Loyalty Analytics in Different Industries

To increase the level of customer retention, it is important to understand what makes customers loyal to a brand. Quality of product and pricing is certainly the main factor but there are other factors as well to drive a loyal customer.

There are different categories where customers have different experiences wither for company’s product or services. Following are the customer loyalty statistics based on different industries.

Ecommerce Brand Loyalty Statistics

1. Due to the pandemic, 71% of consumers have started shopping online
2. 14% of customers shopped all their necessities online in 2020 and 67% of customers did half of their shopping online
3. 75% of customers started buying groceries online
4. 53% of customers were inspired by the image & it helped 50% of purchasers to shop
5. The retail sale of e-commerce increased by 27% in 2020
6. 66% of customers prefer to watch a video & 86% of customers make their purchase after watching a video
7. 36% of customers stopped buying online because the sites did not have a return policy
8. If the website functionality is not up to the mark then 61% of customers will stop purchasing online
9. Due to the hassle of the checkout process, 31% of customers stopped purchasing online
10. 61% of buyers purchase online to get coupons, reward points, and incentives

Travel Brand Loyalty Statistics

1. 85% of customers are dependable on travel & hospitality businesses
2. Brands with the right customer service attract 84% of customers
3. 83% of consumers are loyal to brands that secure the private information
4. Tourism brands that have reliable and safe records are trusted by 83% of customers
5. Brands with good money-value ad pricing have 82% of customer loyalty
6. Customer loyalty statistics for travel brands that deliver consistency is 82%
7. 85% of customer loyalty can be harmed if any travel brand asks for a surprise fee
8. 35% of customers do not trust travel brands due to poor experience
9. 32% of US adults trust the brands which provide quality help
10. 82% of travelers sign up for travel loyalty programs and 81% sign up for rewards

Customer Loyalty Statistics in Bank

1. 96% of customers have a positive attitude towards banks because of the advice they receive from bank advisors
2. To look after their financial long-term well-being, 77% of consumers trust the bank
3. Only 7% of consumers change their bank and cancel their account
4. Female bank customers stay with the bank for more than 5 years and the rate is 61%
5. 73% of men expect additional services from the bank
6. There are 80% of customers do not have a bank account
7. 40% of bank associates work hard to improve customer experience
8. 43% of customers trust the financial institution
9. If the bank does not provide a good experience then 80% of them will change the bank
10. Only 20% of consumers stake credit card or bank loans from the bank
11. To get exclusive deals, 64% of customers download a bank app
12. 61% of bank customers join loyalty programs through bank apps

Customer Loyalty in Restaurant

1. Due to the pandemic, 31% of single parents started ordering food online
2. 25% of married parents are loyal to restaurants
3. On average $4520 is spent by US households on digital restaurant orders
4. 45% of single parents most likely to use loyalty programs than 25% of single people
5. 36% of customers will stick to the restaurant brands they have tried
6. 59% of customers visit a restaurant due to their extraordinary promotion
7. 58% of customers will explore restaurants to try new dishes
8. 52% of customers will visit the restaurant due to recommendations from others who are loyal to the restaurant brands

By Demographics

1. To grab the rewards and the holiday season benefits, 73% of millennial customers joined the customer loyalty program
2. 85% of millennials shop from brands that provide loyalty programs for a better shopping 
3. According to customer loyalty statistics, 28% of millennials shop every few days from the brands that they are loyal to
4. 68% of US women join customer loyalty programs compared to 59% of men
5. 57.7% of millennial customers do not subscribe to loyalty programs  if they do not get any relevant rewards

Factors Influencing Customer Loyalty Statistics

There are various factors like pricing, quality, and product availability that influence customer loyalty toward the brand. We have listed the statistics of factors that influence customer loyalty.

• 74% of customers are interested in the quality of the product
• 66% of consumers look after the value of money
• 65% of purchases depend on the consistency of the products that the brand sell
• Customer service is a great factor that influences a consumer by 56%
• An easy shopping experience and product selection influence customers by 55%
• 54% of customers convert into loyal consumers after looking at the pricing of a product

Customer Loyalty Marketing Statistics

Appreciating and rewarding existing customers who repetitively buy from a brand empowers companies to launch loyalty programs. Many people have started enrolling themselves in loyalty programs according to loyalty marketing statistics.

The recent customer loyalty statistics state that the loyalty management market will increase its growth till 2026. Following are the customer loyalty management statistics based on the market going on in the US.

• With an annual growth of 22.7%, the loyalty management market is depicted to reach $13.8 billion in 2026 from $4.02 in 2020.
• 75% of US adults subscribe and participate in customer loyalty programs
• 67.6% of customers are ready to join loyalty programs
• 90% of companies offer loyalty programs to their customers
• To gain access to product sales, almost 60.1% of consumers join loyalty programs
• 50.8% of customers join loyalty programs to get prior access to the products 
• 38.9% of consumers expect recommendations on their preferences
• 38% of customers are inspired and motivated to join customer loyalty programs
• Customer interactions are given more priority by 84% of marketers
• 63% of millennials are ready to share their personal information to get more discounts & offers
• 2/3rd of companies prefer using audio advertisement to attract loyal consumers whereas 69% of people use mobile messaging

B2B Industries Stats

• Brands that provide a personal communication medium get a higher engagement rate according to 90% of B2B.
• 85% of B2B marketers buy from other sellers due to the recommendations of their friends or family.
• 88% of B2B believe that creating worthy content makes their business unique & impacts more loyal customers
• In the last year, 54% of B2B marketers have built customer loyalty that benefits their brand

Relation of Brand Loyalty With Employees

Brand loyalty can also benefit employee satisfaction along with customer service. To the statistics of how brand loyalty impacts employee loyalty, go through the following statistics:

• 92% of customers trust brand associates or employees more than they trust any advertisement of brands
• The message of a brand shared by employees results in 24 times more effective than advertising
• 58% of customers who rate the brand with better employee experience helps in increasing sales
• The sales of new product lines can be boosted with the help of employee loyalty statistics

Customer Loyalty Statistics by Different Metrics

Customer loyalty has many metrics. They are customer experience, churn rates, repeat purchase ratio, retention rate, engagement, and much more. Here we will discuss marketing metric statistics first and move further with other metrics.

1.  Customer Experience Statistics

• 93% of customers prefer buying from brands with excellent customer service
• 50% of customers prefer a competitor to buy from who meets their preferences
• 75% of US shoppers buy based on consistency, pricing, and availability
• 62% of customers will pay more if they get desired product from their preferred brand
• If a business website is poorly designed for mobile phones then 57% of customers will stop visiting 
• 1 in 26 customers will register their poor experience with the brand or a company whereas others will not
• 70% of customers are loyal to brands that treat them well

2. Customer Churn Rate

• Due to the customers switching brands every year US companies lose $136.8 billion
• 50% of customers will switch to a different brand if they have one bad experience
• 80% of customers change their brand preferences if more than one bad experience
• If a company fails to answer one negative review then 57% of customers will not shop from that brand
• 33% of customers do not buy from a brand that does not sell personalized products

There are several US industries with the highest churn rate. They are as follows

• Cable Industry – 25%
• Credit or Financial Services – 25%
• Retail Sales Statistics – 24%
• Online statistics of Sales – 22%
• Telecommunications Loyalty Rate – 21%
• Travel Industry – 18%
• Big Box Electronics – 11%

3. Customer Retentions Statistics

• 82% of businesses believe customer retention is an important metrics
• In many global markets, the churn rate can be 30% due to low customer retention
• Only 5% to 20% of new customers can be attracted whereas 60% to 70% of existing customers can be maintained
• Due to poor customer retention, the statistics of the US industries drop down to $136.8 billion

4. Customer Engagement Statistics

• Brands with fewer reviews rates will be abandoned by 54% of customers
• The personalized content of a brand and its engagement helps to retain 82% of customers
• 80% of brands depend on email marketing strategy to maintain a client retention rate
• Customers spend 12% to 18% more each year once they join a customer loyalty program
• According to 78% of marketers, the engagement of consumers that are attracted to the company is data-driven

Customer Loyalty Program Statistics

Loyalty programs affect the revenue of all companies. Companies can attain customer retention by planning a successful loyalty program. Customer loyalty statistics show that brands that do not have any loyalty program can risk a drastic loss of consumers. 

• 14.8% of loyal customers subscribe to loyalty programs
• Out of which only 6.7% are active and maintain the loyalty
• There is a 20% increase in spending because of the loyalty program customers
• Brands that have loyalty programs gain 83% of more consumers
• 57.4% of customers return to a brand if they can save money & get rewards
• 50% of customers join loyalty programs to get rewards on their purchases
• Due to availability, convenience, and price, 75% of consumers changed their shopping habits
• To enhance the millennial’s experience, 85% of them enroll themselves in loyalty programs
• 58.7% of internet customers believe in reward and loyalty programs as an important part of the shopping experience

Benefits of the Customer Loyalty Program

When a brand launches a customer loyalty program, it must know the following benefits that they are going to get from the customers. Customer loyalty statistics depend on the loyalty program that the brand starts. Following are the benefits and the statistics of how customers are influenced by it.

1. Customer Spending is increased

Most customers are willing to spend more on the brands to which they have been loyal for a long period. 67% of loyal customers spend more than new customers. Only 34% of small businesses have loyalty programs because of this more than half of the businesses lose loyal customers.

2. Increase in the Customer Spending

Customers’ loyalty statistics show that the brands which have loyalty programs have higher sales in the market. Whereas, there is 90% of customer spending frequency. Customers buy more stuff when they get rewards and coupons in turn. The buyer purchases more once they get bonuses.

3. Importance of Word of Mouth Marketing

The more loyal a customer is to a brand, the more they will talk about it. Once the consumer receives rewards, more trust is built. 20% to 50% of brands’ new sales from the word of mouth marketing. People trust the marketing strategy and at least 50 times more sales. It is a kind of free promotion.

4. Cost of Customer Acquisition is Decreased

An existing customer will most likely buy new products more than new customers. According to recent statistics, customer acquisition costs 6 to 7 times more than customer retention. Retaining the existing customer boosts profits by 25%. Decreasing costs by 10% has the same effect as increasing customer retention by 2%.

5. To Attract Customers

82.4% of buyers opt for brands that have loyalty programs. It is important to catch the attention of consumers. Whereas the engagement rate of consumers in this program is comparatively less at 17.6%. You must think and take steps that are necessary to encourage and attract consumers.

6. Lifetime Value of Customers is High

Customer acquisition cost is comparatively high and may need to rely on the lifetime of customers’ value. The customer must visit the stores through which brands can change it into profits. Customers who join customer loyalty program is much more valuable than the ones who are new. They make purchases with the brand 10 ten times more than others.

7. Important Goal of Advertisement

Customer loyalty statistics state that customer acquisition is their prime way of advertising for all brands. 63% of brands believe customer loyalty is the most important factor while staging out profits. Customer retention statistics have increased the profits of brands in one year by 70% to 80%.

8. Avoid the Risk of Recession

When customer loyalty is increased, the best benefit that a brand has is decreasing the recession rate. According to the loyalty stats, repeat buyers have dropped by only 1% in the US. The rate of repeat customer statistics can improve the economy of a company.

9. Repeat Buyers increase the Sales

In the US, there were 25% of repeat customers bought the items from the brands they were loyal to. The return rate reached 22%. Whereas, 17% of new customers made a purchase. Seasonal sales are increased because of existing customers who are loyal to one or more brands.

10. Loyalty Converts Better

Apart from the new and repeat customers who have only bought from you twice, the new collection priority goes to loyal customers. They are the ones who convert better profits and do loyalty shopping from a brand. 24% are converted by loyal customers of a brand whereas only 6% are converted by new customers. According to repeat customer statistics, one repeat customer is equal to five new customers whereas one loyal customer is equal to nine new customers.

How do Customer Loyalty Companies Invest in Technology?

Due to the pandemic, many brands have started investing in e-commerce. The rising rate of online shopping has drastically changed the minds of businesses. Physical stores have converted into online stores and shopping has become a one-click stop. 

As the retail industry transforms, the essence of customer loyalty also varies. The brands have to start working on their customer services to attract consumers online.

• 60% of customers feel that paying from mobile for goods is more convenient
• 94% of retailers believe that the online shopping trend increased the most in 2021
• Since January 2020, customers have preferred contactless payments more
• 75% of customers ask to talk to humans than robots or machines to solve their queries
• Companies are investing by 80% in all omnichannel experiences

Understand the statistics depending on different channels and get insights into how different factors affect customer loyalty statistics.

Additional Customer Loyalty Statistics

• 17% of millennial customers share their positive experiences with other people
• 15% of customers will share their poor experience with their purchases
• 70% of customers recommend the brand to others if they have a strong loyalty program
• 73% of brands rely on existing customers more than new ones
• 67.8% of customers believe that repeat shopping results in customer loyalty

Factors Influencing Customer Loyalty Statistics

It is important to understand that customer experiences are a major thing in building up customer loyalty. A positive customer experience will automatically lead to a greater customer base. The customer service statistics reveal that it is necessary to maintain the value of customer experiences.

Attributes Affecting Customer Experience And Loyalty

• 75% of customers stay loyal to brands that offer fast responses to their queries
• 92% of consumers feel that the brand does not listen to them whereas 18% think that the brand never listens to the customer queries
• 55% of customers appreciate a consistent response from the brand across all its channels.
• Around 52% of shoppers stay loyal to brands/businesses that have knowledgeable staff.
• And 37% of customers require a brand/store person to talk to before finalizing their purchase.
• Research shows that 28% of shoppers stay loyal to brands that offer multiple contact points.
• And 23% appreciate when the tools to utilize a brand’s services are easy.  
• The brand that shares its value attracts 84.3% of customers
• 74% of consumers believe that their queries are half-listened by the company

Cost Affecting Consumer Loyalty

Following are the failing cost that brands face due to losing customer loyalty.

• Brands lose $1.6 trillion because of poor customer service
• If a customer is not able to place an order online then 74% will stop ordering
• If companies fail to create simple customer experiences by encouraging customer loyalty then they lose $98 billion
• If baby boomer customers have to restart the conversation with the brand on another channel then they are 78% sure to stop purchasiIndividualsals who are not satisfied with their purchase are 3 times less likely to make a purchase
• 69% of customers stop purchasing online if they have a poor experience
• 84% of customers will stop buying from a brand with a poor return policy
• 39% of customers have less price sensitivity than other customers as they are ready to spend more on cheaper-priced products

What are the Effects of Customer Loyalty Statistics?

Customer loyalty statistics have effects on two things. That is brand revenue and brand advocacy. Following are the statistics on how customer loyalty analysis has effects on revenue and advocacy.

1. Brand Revenue Statistics

• 20% of existing customers are the reason behind 80% of the brand’s revenue
• Leaders of customer loyalty increase the brand’s revenue by 2.5 times faster
• 319% of the order value is compromised by brands without a loyalty program
• Loyalty schemes can convert 50% of the consumers who are new or repetitive into loyal customers

2. Brand Advocacy Statistics

• 71% of customers who are emotionally engaged with the brand recommend it to others whereas 45% of average customers do not do that
• American customers will recommend the brand they are loyal to 11 people
• Customer loyalty statistics preview that customers will share their experiences

What are the Effects of the Pandemic on Consumers’ Loyalty?

Due to Covid-19, there was a drastic shift marked in online shopping as people were left with their digital devices. Because of such reasons many consumers showed their loyalty towards the brand whereas others turned towards cheaper options. Different people experienced different effects and changed their shopping habits accordingly.

• Due to the pandemic, 75% of consumers changed their purchasing behavior
• 36% of US consumers believe they no longer have to visit the store to shop
• 21% of more enrollment in consumer loyalty programs is marked
• 94% of consumers shop from the loyalty program that they have enrolled themselves in at least once every month
• Since the pandemic, companies have noticed that 43% of fewer consumer walk-ins
• However, 48% of consumers started shopping from an alternative medium
• Only 26% of GenZ prefer to visit the store for shopping & 41% of GenY
• 25% of GenX, 39% of baby boomers, and 42% of the silent generation believe that do not need to revisit the stores to make a purchase
• 50% of consumers are ready to visit the stores again only after taking the vaccine o Covid-19

Frequently Asked Question

Conclusion

From the current given customer loyalty statistics insights, you are all about brand loyalty programs. GenZ and millennials are the ones least interested in participating in customer loyalty programs. There are 9 out of 10 companies that believe customer experience is far more important.

The brands with high loyalty program offerings get the highest revenue and advocacy rate. Seasonal sales and retail sales often gain higher units of profits due to customer loyalty programs of the brand. Make sure you know how the customer loyalty statistics affect, impact, and all the metrics within it.

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