What makes customers want to stay with you and what makes them abandon you for good? Let’s face it, customers these days have a lot of choices. They won’t stick with you unless they really like you. Brands have realized the importance of loyal customers and the value that comes with earning customer loyalty.
But living up to customers’ expectations is not easy. To give you an idea, we have compiled 35 interesting stats about customer loyalty you should know.
Customer Loyalty Statistics
- Attracting a new customer is 5 times more expensive than retaining an existing customer – Forbes.
- 35% of Amazon purchases result from cross-sells – Invesp.
- 10 – 30% of e-commerce revenues come from product recommendations – Sucharita Kodali, Forrester Analyst.
- 96% of millennials say brands should find new ways to reward loyal customers – KPMG.
- 69% of millennials think most loyalty programs are difficult to join and earn rewards – KPMG.
- US companies lose $136.8 billion per year due to avoidable customer churn – CallMiner.
- Companies with great customer service have a 16% price premium/relative price on their products and services – PWC.
- 74% of customers say product quality influences loyalty the most, and 56% say it’s customer service – KPMG.
- 37% of customers say it takes at least 5 purchases for them to consider themselves loyal to a brand – Yotpo.
- 90.2% of customers claim they are more brand loyal than a year ago. Yotpo.
- 33% of US customers are likely to switch companies immediately after a single instance of a bad experience – American Express.
- 96% of customers don’t trust advertisements – Ad Age.
- Word of mouth (WOM) accounts for 13% of sales – Invesp.
- Customers are 96% more likely to trust recommendations from their friends and family – Invesp.
- 46% of customers are likely to stay loyal even after a bad experience – KPMG.
- 70% of brands are looking to increase their online WOM budget and 29% will increase their offline WOM budget – Invesp.
- A 5% increase in customer retention contributes to about a 25% increase in the profit – Bain & Company.
- US customers tell an average of 15 people about their bad customer experiences as opposed to the 11 people they tell about their good experiences – American Express 2017 customer service barometer.
- Customers say feeling unappreciated is the top reason they switch companies – Forbes.
- 77% of customers feel more loyal to a brand that seeks and applies feedback – Microsoft.
- 69% of US customers shop more with brands that offer consistent online and offline experiences – Forrester.
- 85% of customers trust online reviews as much as recommendations from friends and family – BrightLocal.
- Customers read an average of seven reviews before trusting or purchasing from a business – BrightLocal.
- More than 90% of companies have some kind of loyalty program – Accenture.
- 57% of customers spend more on brands they are loyal to – Accenture.
- The average US family is enrolled in about 18 loyalty programs, but is only active in 8.4 – Colloquy Loyalty Census.
- 51% of US customers are more loyal to brands that interact with them through their preferred mode of communication – Accenture.
- 15% of customers prefer buying gifts from brands they have a loyalty program with – Cision.
- 82% of US customers are loyal to brands and 84% are loyal to retailers – Businesswire.
- 54% of US customers switched brands from 2017 to 2018 – Accenture.
- Companies that have an emotional connection with customers exceed their competitors’ sales growth by 85% – Gallup.
- Customers who feel emotionally connected to a brand have a lifetime value 306% higher than those who don’t – Motista.
- 92% of customers say rewards could make them leave brands they felt loyal to – Wirecard.
- 66% of customers modified their spend on a brand to maximize their loyalty benefits – Bond.
- Gen – Z customers say loyalty programs highly influence their purchase decisions – Bond.
Conclusion
Customers don’t just expect to purchase from a brand. They want to be recognized, rewarded, and most of all heard. Loyal customers are your brand advocates, and every effort you put into maximizing their positive experiences can pay you in spades in terms of mind share and heart share.
Hope this article helped you understand why customer loyalty matters. HappyFox is a company that prides itself on high customer loyalty. If you strive to be remembered as a brand with excellent customer experiences, include us in your journey! Schedule a personalized demo with HappyFox product experts and transform your customer relationships starting today.
