These statistics can help fill you in on some realities about your members and help you maximise your customer loyalty program.
- Acquiring new customers is up to 25 times more expensive than retaining new ones, depending on your industry (Harvard Business Review)
- Customer loyalty leads to profits. Increasing customer retention by just 5% boosts profits by 25-95% (Bain & Co.)
- Investments in customer loyalty programs are trending up. 57% of marketers plan to increase spending in customer loyalty programs compared to this year (e-marketeer)
- 42% will stop shopping with a brand after just two bad experiences, regardless of whether they belong to a loyalty program or not (Accenture)
- Members of retailers’ customer loyalty programs generate between 12 percent and 18 percent more revenue for retailers than do customers who are not members of the loyalty programs (Accenture)
- Customer engagement leads to customer retention. Engaged customers are five times more likely to buy only from the same brand in the future (Rosetta Consulting)
- 56% of shoppers say they changed or abandoned a purchase when they realised their loyalty points had expired (CodeBroker) That’s why Prime members spend almost five times as much as non-members every year.
- The top two most attractive rewards are instant gratification in nature - money off of every purchase and free products (Clarus Commerce)
- 71% of shoppers say they would be more likely to use their loyalty programme if it was an app (CodeBroker)
- The number of companies investing in the omni-channel experience has jumped from 20% to more than 80% in 2019 (PwC)
- The absence of negative feedback could be a bad thing. A study by Kolsky revealed that 1 in 26 unhappy customers actually complain and the rest leave quietly.
- The top 10% of your customer base is spending 3 x more than your average customer (HubSpot)
- 37% of customers are willing to pay more money to upgrade to an enhanced tier of a customer loyalty programme (Bond)
- 70% of consumers are more likely to recommend a brand if it has a good loyalty programme (Bond)
- 52% of loyal customers will join a loyalty program (YotPo)
Always remember that customer loyalty is not a tactic, but rather an evolving, ever-green strategy to connect with your best customers on a deeper level.
The loyalty member engagement stats have spoken. Are you listening?
Next, read our post about what today’s consumers want from loyalty programs.