May 15, 2018
Customer loyalty can be hard to come by. With so many buying options, how can brands encourage repeat sales and turn once-in-a-while customers into loyal ones?
For many, the answer is to use a customer engagement platform that gives you the ability to reward your most loyal customers.
Eighty-three percent of customers say loyalty programs make them more likely to do business with a brand. When customers are loyal, they’re more likely to drive repeat sales, engage with your brand, and rave about your products to friends and family.
Here’s a look at thirty statistics that show just how important customer loyalty is:
General customer loyalty statistics
- U.S. consumers hold 3.8 billion memberships in customer loyalty programs. [Colloquy 2017]
- Memberships in loyalty programs have grown by 15% between 2015 and 2017. [Colloquy 2017]
- Top three reasons for using a loyalty program: Easy to use (53%), gives great discounts (39%), easy to understand (37%) [Colloquy 2017]
- The top reason people abandon loyalty programs: It takes too long to earn a reward (57%). [Colloquy 2017]
- Customers who got a reply to their feedback were 14% more likely to return. [Thanx]
- Customers who are considered “promoters” spend at least 21% more each year are 8% less likely to churn and account for 80-90% of all referrals. [Thanx]
- Retailers hold the biggest piece of loyalty pie with 1.6 billion reward program members. Travel and hospitality sector, including restaurants, holds 1.1 billion members. Grocery stores have 142 million members. [Colloquy 2017]
- If a consumer is loyal to your business, he or she will spend an average of 66% more than customers who aren’t loyal. [Accenture]
- 55% of loyal customers recommend your business to family and friends, and 12% will publicly defend your company on social media. [Accenture]
- A household with an income of $150,000 is 32% more likely to be loyal than those with an income of $35,000. [Facebook]
- A loyal customer who “adores” your brand is more than 11 times as likely to buy more, 17 times as likely to recommend the company, 9 times as likely to try new offerings, 6 times as likely to forgive the company if it makes a mistake, and 10 times as likely to trust the company. [Tempkin Group]
- Customers who provide feedback have a 1.4x higher lifetime value. [Thanx]
Mobile is a must for customer loyalty
- 66% of companies that saw a decrease in customer loyalty over the past year do not have a mobile app. [Apptentive]
- 77% of consumers return to the same brand again and again, but not all of them say they’re “loyal.” Thirty-seven percent of customers who buy repeatedly from a company say they aren’t loyal to it, while 40% of repeat buyers say they are loyal. [Facebook]
- Top four words that brand loyalists use to describe brands they love: Experience, quality, cost, consistency. [Facebook]
Customer loyalty: Millennials vs. boomers
- Millennials love loyalty apps, with 66.3% indicating they’ll shop at a store with a tech-savvy rewards program. [CSA]
- What do millennials want in a loyalty app? Product availability and digital payment options through the app. [CSA]
- What do boomers want in a loyalty app? Product availability and access to coupons. [CSA]
- 61% of millennials use loyalty apps 1-5 times a week, compared to just 48% of boomers. [CSA]
- 47% of millennials say engaging with them in innovative ways to provide a multi-sensory experience influences their brand loyalty. [Accenture]
- Top three incentives for millennials to join a loyalty program: How quickly rewards are earned (43%), the variety of rewards offered (34%), ease of tracking and redeeming rewards (22%). [Software Advice]
Data and analysis for customer loyalty
- The majority of customers (51%) trust loyalty programs with their personal information. [Colloquy 2017]
- 58% of marketers use data to model best customers and identify best audience segments. [Dun & Bradstreet]
- 69% of marketers say they use data to make just about every marketing decision. [Gartner]
- Only 16% of brands describe the data they use to make marketing decisions as “very good.” [Informatica]
- 33% of marketers say data quality is the biggest challenge they face when trying to use it to drive marketing initiatives. [Dun & Bradstreet]
- Top three uses of data: Personalize the customer experience (58%), targeting individual market segments (50%), measuring data-driven marketing initiatives (49%). [Informatica]
- 57% of brands say the biggest challenge they face in data collection is improving the quality of information they collect. [Informatica]
- Top five pieces of customer information that brands find helpful: First and last name (56%), role/title (51%), company name (39%), phone number (31%), industry vertical (27%). [Informatica]
- 72% of companies with high data quality standards are increasing their budget for data-driven marketing. [Informatica]
If you’re ready to focus on customer loyalty, it’s time to check out your options. There are plenty of platforms out there to choose from, but you should look for a data-based customer engagement platform that provides robust data, the ability to communicate 1-to-1 with customers, and a platform that has a frictionless experience for both you and your customers.
See how Thanx can help you grow your business. Request a demo today.