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85 Customer Loyalty Statistics Businesses Need to Know [2024]

85 Customer Loyalty Statistics Businesses Need to Know [2024]

Your primary goal as a business owner is to earn your customer’s trust so they are loyal to you. Why? This is because your brand will only be successful if your customers keep returning to do business with you. Moreover, a lasting relationship with your clients increases your potential for growth as they’ll keep referring you to their friends and family. 

These statements aren’t just assumptions, and there are statistics to prove them as facts. In this article, we’ll highlight some of these brand loyalty statistics. Aside from giving you insights into the importance of brand loyalty and loyalty program trends, you’ll discover measures to improve your customers’ loyalty today. Let’s get right to it!

Overall Customer Loyalty Trends and Metrics 

It’s a good business decision to expand your customer base. However, it’s often wiser to use your resources to keep the ones you have happy rather than looking for new clients. The following customer loyalty facts clarify this.

1. Getting a new client costs five to 25 times more than keeping a new prospect.

2. You have a 60-70% chance of selling to an existing customer and a 5-20% chance of selling to a new one.

3. 79%  of customers will be loyal if they get access to exclusive benefits. 

4. 68% of customers will join the loyalty program of a brand they like.

5. Customers who feel emotionally connected with a brand have a lifetime value of over 306%.

6. According to Forbes, American companies lose up to $136.8 billion annually to customer churn that could have been avoided.

7. 95% of customers are loyal to a company they trust.

8. 83% of consumers stated that emotional connection with a brand was the most important trustworthiness factor.

9. Over 50% of loyal customers actively endorse a brand to their friends and family.

10. About 14% of customers would endorse a brand on social media.

11. One in three customers would leave a brand after one bad experience.

Brand Loyalty Statistics

happy customer shopping online

You should not neglect your existing customers because they are one of your most valuable assets. If you can earn their trust, they’ll always return to you and even bring other customers to help your brand grow. Here are some customer loyalty data that’ll give you more insight.

12. Up to 65% of a business’s profit comes from repeat sales to their loyal customers.

13. A study revealed that 77% of customers have maintained relationships with a particular brand for at least ten years.

14. Brand loyalty stats show that 57% of people prefer to spend more on brands they are loyal to.

15. Customers who connect emotionally with a brand have a 71% chance of recommending it to others.

16. Brands that provide positive experiences for their clients have three times more word-of-mouth brand loyalty advertising than brands that provide less satisfactory experiences.

17. When your brand aligns more with your clients’ values, they are about ten times more likely to spend on your brand.

18. They are also about four and ten times more likely to recommend and do business with your brand, respectively.

19. 96% of customers trust recommendations made by friends and family.

20. 56% of customers will prefer to patronize a brand they like, even if there’s a cheaper option.

21. 74% of customers agree that product quality affects their loyalty to a brand, while 56% agree that it’s customer service.

22. 37% of customers say it would take at least five purchases to determine their loyalty to a brand. 

Customer Loyalty Program Effectiveness Statistics

Now that you know your customers are looking for value, the next step is to adopt a brand rewards program to satisfy them. Check out these loyalty program stats to understand the difference loyalty programs make to your brand.

23. 37% of consumers spend more with brands with which they have a retail subscription. 28% and 27%  will spend more because of membership and loyalty programs, respectively.

24. 95% of customers involved in loyalty programs will make more purchases with a brand because they feel close to them.

25. 84% of customers agree they prefer to stay with a brand with a loyalty program.

26. Customers who participate in loyalty programs generate 12-18% more revenue for retailers than those who don’t.

27. About 75% of customers in a loyalty program with a brand will keep buying products from them.

28. Successful loyalty programs experienced a 15-25% boost in annual revenue from clients who redeemed their points. This was due to higher purchases and/or increased basket sizes.

29. More than 83% of customers agree that participating in a loyalty program positively affects their decisions to make another purchase from a business.

30. The potential of earning rewards changes the spending behavior of about 66% of consumers.

31. Loyalty programs convince 68% of customers that a brand understands their buying preferences better.

32. Almost 60% of loyalty programs have recorded more loyal shoppers.

33. 63% of customers who have retail subscriptions would like to join a brand’s loyalty programs. 47% also say they would want to obtain membership.

34. 53% of customers want loyalty programs that are easy to use, 39% want those with juicy discounts, and 37% want those that are easy to understand.

Customer Retention Strategies and Statistics

cheerful customer enjoy shopping

When you get your customer retention strategy right, you can turn a one-time customer into a fan. The facts about customer loyalty and retention we have provided below reveal the value of customer retention and the steps you can take to retain your clients in the long term.

35. A 5% increase in customer retention translates to about a 25% increase in revenue.

36. 90% of consumers who believe that a business understands their preferences are likely to make more purchases from them.

37. Getting discounts, deals, and freebies is the major inspiration for customers joining loyalty programs.

38. 49% of customers agree to make impulse purchases because of a personalized recommendation they received.

39. 80% of customers prefer to patronize a business that provides a personalized experience.

40. 65% of shoppers are willing to share their data if it helps them get value-adding personalization.

41. 40% of customers will spend more because of a highly personalized experience.

42. 63% of U.S. adults are willing to share personal information for perks like loyalty program points, cash rewards, and early access to new sales.

43. 71% of Italian adults online also agreed they’ll do the same if they get value.

44. Six out of ten customers participating in loyalty programs are happy with a brand because they believe their relationship is beyond transactional.

Customer Satisfaction and Loyalty Statistics

Your customers’ behavior with your brand says a lot about their satisfaction. The following brand loyalty research facts will help you discover aspects of your brand that you can work on to improve your customers’ satisfaction. 

45. The global loyalty management market is valued at over $ 5.57 billion and is expected to reach at least $24 billion in 2028.

46. Early access to sales impacts the decision of 60.1%  of customers.

47. Customers also value early access to new products (50.8%) and tailored recommendations (38.9%).

48. 69% of Americans shop with brands with consistent online and offline services.

49. 51% of customers in the US are loyal to businesses that interact with them using their preferred media.

50. 77% of customers are loyal to brands that ask for and implement feedback.

51. 92% of customers can leave a brand they were loyal to because of reward programs. 

52. 51% of clients agree that poor quality can make them lose their loyalty to a brand.

53. 71% of premium loyalty members of a brand make purchases at least once a week.

54. 63% of consumers feel recognized as individuals when they receive specially personalized offers. 

55. Less than 8% of customers agree that rewards do not affect their purchase decisions.

56. 54% of customers will drop brands that don’t engage them enough.

Industry-Specific Customer Loyalty Statistics

amazon prime membership
(Credit: Bob Al-Greene/PCMag)

The importance of customer loyalty brand marketing is seen in the growth of businesses that adopt it. Here are customer loyalty program statistics that show successful cases across various industries and sectors.

57. People make retail subscriptions because they have access to higher-quality products.

58. Also, 12% of retail subscribers use the service because it’s difficult to find good quality items elsewhere.

59. Amazon Prime members spend twice more than those who are not members.

60. 73% of retail subscribers are encouraged to do so because of free shipping.

61. Walmart+ members spend an average of about $79 during an online visit, while non-members spend about $62.

62. Additionally, Walmart+ members shopped an average of 29 times annually, while non-members shopped an average of 18 times.

63. 60% of customers consider sustainability a huge purchase criterion.

64. Princess Polly has generated about 15.4 in loyalty ROI through their loyalty programs.

65. American Airlines’ AAdvantage loyalty program is valued at over $20 billion, more than thrice the airline’s worth. 

66. Adidas adiClub members make 50% more purchases compared with non-members.

Impact of Customer Loyalty on Business Performance Statistics

Investing in your brand’s services to improve customer loyalty is like killing two birds with a stone. Not only would your customers be happy, but your business would also experience a revenue boost and profitability. We’ll explore some facts that’ll make things clearer. 

67. Up to 80% of a company’s revenue would come from existing customers in the future.

68. The customer’s lifetime value of Adidas adiClub members is twice that of non-members.

69. The average order quality of brands can grow by up to 319% after launching a loyalty program.

70. About 90% of businesses provide some sort of loyalty program. 

71. Brands that have an emotional relationship with customers surpass their competitor’s sales by 85%.

72. Brands that focus on improving customer experience generate 5.7 times more revenue than those that don’t.

73. Companies earning an average of  $1 billion per year can expect to earn an additional $700 million within three years if they invest in their customer experience.

Customer Loyalty Demographic Statistics

gen z

People’s reasons for being loyal to brands could vary across age, gender, and demography. Let’s take a look at these loyalty program statistics to see these trends.

74. 71% of millennials would leave a good review for their favorite brands compared with 66% of Gen Z and 59% of Baby Boomers.

75. Millennials are more likely to access loyalty programs on a smartphone than on a computer.

76. American adults between 55 and 64 are likelier to opt for a loyalty or rewards program.

77. 75% of US citizens agree they’ll be more loyal to brands that connect with them personally. 

78. 42% of millennials and 39% of Gen Z don’t mind paying premium prices for sustainability.

79. Loyalty programs greatly influence Gen-Z customers’ purchase decisions. 

80. Reliability and durability were the biggest deal for millennials regarding loyalty. 

81. About 57% of Gen Z in America are less loyal to businesses than before the pandemic.

82. 86% of Gen Xers, 85% of Baby Boomers, and 74% of millennials would change retailers because of poor customer service.

83. 55% of US and UK customers say they don’t trust brands as much as they did in the past.

84. 31% of Americans would switch brands if they discovered the company lied about a product’s performance or efficiency. 

85. In America, women are 15% more likely to participate in loyalty or rewards programs than men.

Securing Loyalty With Insights

Customers don’t enjoy hopping from one brand to another. What makes customers loyal to a brand is that the business is committed to them and can provide value they can trust. If you can accomplish these, then you’ve hit the loyalty jackpot.

Furthermore, as you can see from the brand loyalty data we’ve provided, one thing that matters to customers is a personalized experience. With Mandala AI, you can analyze your clients’ data to understand them and provide services that suit their needs and preferences.

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