Perhaps the latest research and news on customer loyalty will provide an eye opener for companies who benchmark their performance against the statistics. Customer loyalty is based on how willing a customer is to engage in repeated business with a specific brand instead of its competitors. Loyalty is highly dependent on positive customer experiences and the willingness of the brand to build valuable relationships.
Many companies use the strategic management “loyalty business model” to deploy their resources in order to drive customer loyalty. As a business, customer loyalty is key to increasing profits and sustainable growth. Here are 40 key customer loyalty statistics that every business owner should know.
Customer Purchasing Statistics
- Existing customers make up 65% of a company’s business.
- A recent global survey showed that 62% of all customers chose price as the number one factor for being loyal to a brand.
- 40% of customers in the U.S say that they prefer online shopping to in-store shopping since the outbreak of the Covid-19 pandemic in 2020.
- Research has shown that 2 out of 3 consumers will make purchases that are in line with their values.
- Customers are 8.7 times more likely to respond to user-based marketing as opposed to influencer marketing.
- 70% of customers will purchase from brands who focus on a personalized experience. A great example of this is the “share a Coke” campaign by Coca-Cola.
- Social purchasing is used the most by the Gen-Z generation. Studies show that 54% of the 18-24 year old age group has made at least one online social purchase.
- 75% of U.S consumers have changed their shopping behavior after the pandemic and intend to remain loyal to their new brand.
- Statistics show that 67% of consumers buy at least once a month from their favorite brands.
Customer Loyalty Statistics
- The global loyalty management market is estimated to be over $4,5 billion.
- Further studies indicate that in 2028, the loyalty market could be worth as much as $18 billion.
- 77% of customers indicated that loyalty rewards would make them more positive towards a brand.
- In a recent survey, over 80% of customers felt more positive towards brands that offered them free shipping for their online purchases.
- Research shows that 50% of U.S customers have switched brands because their needs were not met.
- Almost 80% of customers will remain loyal to a brand for more than 10 years.
- Studies show that revenue can increase by 8% for businesses who are more customer experience focussed.
- Customer engagement is extremely important. Almost 60% of customers in a recent survey would leave a brand if their negative feedback did not get a response.
- More than half of U.S. consumers have joined a loyalty program for one of their favorite brands.
- A survey done by Deloitte found that 57% of consumers will remain loyal to a brand that is addressing social inequities.
- It is estimated that the global customer retention rate is at 30%.
Loyalty Marketing Statistics
- Email marketing is the most successful strategy with an average return on investment (ROI) of 400%.
- 43% of email marketing is outsourced according to marketers.
- 75% of customers have indicated that they are open to receiving marketing via text message.
- Research shows that 85% of U.S consumers have received a text message from a brand recently.
- Self-service options are preferred by 39% of surveyed consumers as they find it easier and more convenient.
- Digital marketing has become increasingly popular and companies are investing over 70% of their marketing budgets in this channel.
- A recent survey found that livestream videos are used by over 70% of marketers to engage with their audience.
- Over 80% of brands are currently using video as a marketing tool.
- Almost half of brands say that their main criteria for video marketing success is brand awareness and PR.
- Omnichannel strategies are preferred by almost 80% of consumers for its streamlined communication experience.
- 90% of customers rely on ratings and reviews from other consumers before trying a new brand.
Customer Loyalty General Statistics
- Since the Covid-19 pandemic, almost 90% of consumers want brands to implement more digitized solutions.
- 30% of consumers have increased their mobile payment usage since the Covid-19 pandemic.
- More than half of brands surveyed indicated that their future loyalty program strategy will be more emotional instead of rational.
- 17% of U.S consumers belong to loyalty programs.
- The Gen-Z generation are the most likely group to pay more for products that are environmentally friendly and sustainably sourced.
- A worldwide study showed that less than 4% of consumers are not willing to share their personal data with brands.
- More than half of consumers would be loyal to a brand if they are listed as being environmentally friendly.
- 82% of consumers list brand transparency as an important brand loyalty factor. Over half view transparency as extremely important.
- The opinions of friends and families influence around 76% of consumers, followed by media coverage (57%) and influencers (44%).
The post Covid-19 consumer behavior has changed drastically. Online shopping and other digital channels have become more popular and will continue to grow in the future.
One of the top factors for consumers remaining loyal to a brand is price followed by quality. It is also clear that consumers are looking for more personalized experiences as well as being rewarded through loyalty programs for their support.
Businesses wanting to retain their customers, must understand consumer behavior and the important statistics that will drive their decision making.
Sources and References
- DAM, S.M. and DAM, T.C., 2021. Relationships between service quality, brand image, customer satisfaction, and customer loyalty. The Journal of Asian Finance, Economics and Business, 8(3), pp.585-593.
- Alam, M.M.D., Al Karim, R. and Habiba, W., 2021. The relationship between CRM and customer loyalty: the moderating role of customer trust. International Journal of Bank Marketing.
- Islam, T., Islam, R., Pitafi, A.H., Xiaobei, L., Rehmani, M., Irfan, M. and Mubarak, M.S., 2021. The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust. Sustainable Production and Consumption, 25, pp.123-135.