As a business owner, you know that no two customers are exactly the same. Customers come in, return, and churn for unique reasons.
And while there is no one answer to how to effectively market your business, there is a high-performing tactic that every business benefits from: customer engagement.
In this post, we’re sharing what customer engagement is, why it’s crucial for your business, and 31 statistics every business owner needs to know.
What is customer engagement?
In essence, customer engagement is the way you interact with your customers in meaningful ways. Just as personal relationships make up the fabric of communities, customer relationships are the fabric of your business. By investing in customer engagement, you are fueling and nurturing these important relationships.
Customer engagement and loyalty is a two-way street. It’s more than loyal customers engaging with your business – you also need to prove your loyalty to your customers.
Successfully engaged customers represent an average 23% premium in share of wallet, profitability, revenue, and relationship growth compared to average customers. Your most engaged customers sustain and grow your business. Customers you connect with in personal, relevant ways will keep returning and stay away from competitors.
A revenue-driving customer engagement tactic is to use a powerful, data-based customer engagement and loyalty platform. The right customer engagement platform will:
- Drive repeat customer visits
- Improve customer satisfaction
- Increase revenue
Ready for proof? Here are 31 eye-opening statistics that show the importance and effectiveness of customer engagement.
Customer engagement & loyalty
1. 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with businesses and brands (Bond)
2. 77% of consumers say loyalty programs make them more likely to stay with a business (Bond)
3. 70% of consumers are more likely to recommend a business with a good loyalty program (Bond)
4. It costs 5x more to find new customers than it does to keep existing ones (Invesp)
5. 55% of loyal customers recommend your business to family and friends, and 12% will publicly defend your company on social media. (Accenture)
6. U.S. consumers have 3.8 billion memberships in customer loyalty programs. (Colloquy 2017)
7. Memberships in loyalty programs have grown by 15% between 2015 and 2017. (Colloquy 2017)
8. Comments, customer ratings, and reviews influence purchase decision for 84% of millennial women, and 62% report trying a brand based on recommendations from an influencer (Merkle and Levo)
9. Acquiring a new customer is at anywhere from 5 to 25 times more expensive than retaining existing ones, and increasing customer retention rates by just 5% increases profits by 25-95% (Narvar)
10. 63% of Gen Z and Millennials agree they have many choices of where to shop, so a brand must show them loyalty to earn their business (Alliance Data)
11. 63% of consumers say they modify their spending habits to maximize loyalty benefits (Bond)
12. 75% of consumers say they favor companies that offer rewards (Virtual Incentives)
Mobile customer engagement
13. 85% of loyalty program members who have redeemed with their mobile phone say their experience was improved by that technology (Bond)
14. 97% of millennials say they would actively engage with loyalty programs if they could access their rewards information from their smartphones (CodeBroker)
15. 31% of consumers (up 20% from last year) use their loyalty program’s mobile app to manage their rewards (Excentus)
16. 54% of U.S. loyalty program members said it’s frustrating when programs can’t be easily accessed on smartphones or when an app download is required (CodeBroker)
17. Among those using card-on-file, 85% of loyalty program members say their experience improved (Bond)
Personalized customer engagement
18. 76% of customers felt that receiving personalized discount offers based on their purchase history was important (LoyaltyOne)
19. 80% of consumers indicated they are more likely to do business with a company if it offers personalized experiences (Epsilon)
20. Consumers who believe personalized experiences are very appealing are 10x more likely to be a brand’s most valuable customer – those expected to make more than 15 transactions in one year (Epsilon)
21. Consumers who believe companies are doing very well on offering personalized experiences shop more than three times more frequently (Epsilon)
22. 91% of consumers said they would be more likely to shop with brands who recognize and provide relevant offers and recommendations, and 83% are willing to share their data to make this work (Accenture)
23. 68% of Americans say exclusive offers are more important than traditional coupons that are available to everyone (Kelton)
24. 94% of Americans would take advantage of an exclusive offer provided by a brand that the brand would not typically offer the general public (Kelton)
25. 76% of savvy millennial and gen x shoppers say an offer or discount is the largest factor in their purchase decisions (RetailMeNot)
26. 82% of Americans say being provided an exclusive offer would increase how often they shopped with a brand (Kelton)
27. Automatic, location-based offers when inside a store improved the experience for 83% of loyalty program members who have tried this functionality (Bond)
28. 86% of consumers will stop doing business with you if your customer service is flat (HelpScout)
29. A third of consumers are disappointed with a brand because of perceived lack of attention, 16% are frustrated and 12% are distrustful (Episerver)
30. Experiences that would make customers take their business elsewhere include unfriendly service (60%) and employees’ lack of knowledge (46%) (PwC)
31. 76% of Gen Z and Millennials only give brands two to three chances before they stop shopping them (Alliance Data)
Customer engagement is more important than ever… and these stats prove it. Armed with this knowledge, you can create a modern customer engagement experience that drives measurable results and creates lasting advocates for your business.
To get the most out of your engagement efforts, make sure you’re using a data-driven customer engagement platform that provides a seamless experience for you and your customers.