Finding and acquiring new customers can be a huge challenge. The reasons can be many, but the customer loyalty stats don’t lie: it’s roughly 500% more expensive to convert new ones than to keep current customers. Your competitor may be leaving you behind at the finishing line due to product quality, or your customer service could be lacking…Fetching a new customer from the clutch of an eminent competitor is like an everlasting headache for marketers.
But, retaining existing customers is relatively easy considering the fact that the existing customers love something about your brand…and that’s why they have been with you so far. But you can’t sit there complacently, believing that they will remain with you forever. You have to give them something to validate their business with you. And that’s where loyalty programs work as a remedy to the problem of customer retention. Before moving into the implantation phase of loyalty program, you should have an eye on what impact loyalty has on customers, what makes people loyal, and how different elements of society, like women and millennials, think about loyalty. That’s why we’ve assembled this list of 64 vital customer loyalty stats for your 2017 retention planning.
Why Loyalty Programs Matter (14 Customer Loyalty Stats)
- It costs 500% more to acquire new customers than it does to keep current ones.
- Repeat buyers spend 33% more than new ones
- The cost of bringing a new customer up to the same level of profitability as an old one is up to 16x more.
- 82% of companies agree that retention is cheaper to execute than acquisition.
- Lowering your customer churn rate by 5% can increase your profitability by 25-125%.
- On average, loyal customers are worth up to 10x as much as their first purchase.
- The average repeat customer spends 67% more in their 31st to 36th months of their relationship with a business than in months 0-6.
- Building loyalty with 5% more customers would lead to an increased average profit per customer of between 25% and 100% (The Loyalty Effect)
- 82% of small business owners said that loyal customers were the main way they grow their business (Constant Contact)
- Globally, the average value of a lost customer is $243
- A repeat customer spends 67% more than a new one (BIA/Kelsey)
- Fully engaged” customers deliver a 23% premium over the average customer in share of wallet, profitability and revenue (Cap Gemini)
- Customers who are fully engaged represent 23% premium in terms of share of wallet, profitability, revenue, and relationship growth (Gallup)
- A “Totally Satisfied Customer” contributes 2.6 times as much revenue as a “Somewhat Satisfied Customer” (InfoQuest)
- Once a provider loses a customer, 68% of consumers will not go back (Accenture)
What Drives Loyalty (15 Customer Loyalty Stats):
- 86% of consumers say loyalty is primarily driven by likeability and 83% of consumers say trust (Rare)
- 26% of consumers mention the terms “trust” and “consistency” as an important element of brand loyalty (Rare)
- Personalization is a higher priority for driving loyalty for Generation Z (54%) and Millennials (52%), than it is for Generation X (48%) and Baby Boomers (40%) (Rare)
- Fun is an important loyalty driver with 64% of Generation K listing it as a priority compared with 60% of Millennials, 55% of Generation X and 44% of Baby Boomers (Rare)
- Value for money is a more important loyalty driver for Baby Boomers (70%) and Gen X (70%) than it is for Millennials (65%) and Gen Z (61%) (Rare)
- 56% of consumers said receiving a personalized incentive would improve consideration of the brand (Virtual Incentives)
- 73% of consumers cite price and value as the leading factor that determined brand loyalty (Support.com)
- 66% of consumers cite features, design and quality of product or service as the leading factor that determined brand loyalty (Support.com)
- 53% of adults living in high-income households are willing to switch brands for the sake of using a coupon (GfK)
- The most important driver of brand loyalty for millennials is a great product at 77%, followed closely by brand recognition and trust at 69% (NewsCred)
- 97% of consumers said they are somewhat likely to become more loyal to a company that implements their feedback (Apptentive)
- 68% of consumers say that coupons generate loyalty (RetailMeNot)
- 62% of Millennials report that brand engagement is more likely to make them a loyal customer (USC Dornsife)
- Frequency of interaction builds loyalty and advocacy: 87% daily, 64% weekly, 49% monthly and 33% few times/year (Strativity)
- 62% of millennials say that if a brand engages with them on social networks, they are more likely to become a loyal customer
Read on below for more 2017 customer loyalty stats…
How Millennials View And React To Loyalty Programs (12 Customer Loyalty Stats)
- Millennials are 1.75x more likely than Boomers to say they’d like to be brand-loyal (Facebook)
- Millennials are more devoted than any other generation, with 50% saying they are either extremely or quite loyal to their favorite brands.
- 91% of Millennials have preferences for brands associated with a cause vs. 85% U.S. average (USC Dornsife)
- Millennials are more brand-loyal than any other age group (American Express)
- Price has the greatest influence on Millennials’ decisions about remaining loyal above all other factors (Blackhawk Network)
- 29% of Millennials rated “too many programs to keep track of” as one of their top three things they dislike about loyalty programs
- 84% of Millennials are more likely to use mobile payments if loyalty rewards and discounts are automatically applied (Urban Airship)
- 69% of Millennials belong to a retail loyalty program and 70% of those are happy with the program (Blackhawk Network)
- Millennials are 2.2 times more willing than boomers to pay a premium for products and services if they can also earn loyalty and reward points (Bond)
- 59% of Millennials value loyalty programs that offer special services like concierge (Bond)
- 40% of millennials want to track/redeem rewards on an app (Software Advice)
- Millennials are most incentivized to join a loyalty program based on how quickly rewards accrue (51%) and the variety of rewards available (38%) (Software Advice)
How Women View And React To Loyalty (8 Customer Loyalty Stats)
- Women are more brand loyal than men (Crowdtwist)
- Women are 22.19% more likely than men to always buy the product or services regardless of price, quality, convenience, or brand promise (Crowdtwist)
- 25.05% of women will share a post on social media to earn loyalty points compared to 14.92% of men (Crowdtwist)
- 74.17% of women said they would refer a friend to a loyalty program that they participate in compared to 67.05% of men (Crowdtwist)
- 76.82% of women are likely to shop with a brand that has a loyalty program (Crowdtwist)
- Women (67%) are slightly stronger than men (64%) in their belief that rewards are worth paying for (Loyalty One)
- 68% of women said that getting rewards from a brand makes them stay longer, and not switch to other brands, versus 53% of men (Cherry London)
- 72% of women said rewards make them spend more vs. only 56% of men (Cherry London)
How Marketers View Customer Loyalty (15 Customer Loyalty Stats)
- 75% of US companies with loyalty programs generate a positive return on investment.
- 73% of marketers view customer centricity as critical to the success of their business and role at the company (SAP)
- 32% of US marketers said customer loyalty was their top strategic strategy priority (Clutch)
- 64% of retailers say that their loyalty program is their best method of connecting with customers.
- 19% of marketers listed loyalty acquisition as a primary objective for their 2017 mobile initiatives (3Cinteractive)
- 57% of brands indicate that they will increase loyalty program budgets in 2017 (CrowdTwist)
- 26% of marketers that do not have formal loyalty programs indicated they are using informal methods to encourage loyalty (CrowdTwist)
- 31% of marketers ranked “driving engagement” as the main focus of their loyalty program (CrowdTwist)
- 88% of marketers say executing coordinated campaigns across channels is an important activity relevant to loyalty efforts (CrowdTwist)
- 64% of enterprise mobile marketers said that their top priority for mobile apps is to enhance the customer experience and drive customer loyalty (FollowAnalytics)
- 57% of loyalty marketers were not completely confident in their loyalty program (Big Door)
- 44% of digital marketers said they will somewhat increase loyalty budgets, and 13% plan to significantly (CrowdTwist)
- 84% of marketers report personalization impacts customer retention and loyalty (Exact Target)
- 21% of brand marketers are using SMS for loyalty program communications (3Cinteractive)
- 37% of marketers used mobile campaigns for loyalty efforts (Salesforce)
Note: If you want to get hold of more customer loyalty stats, you can go through our blog post of 2016’s most important customer loyalty statistics. Also take a look at this blog where we have chronicled the best loyalty programs of 2016.