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?
"Given that loyalty program members generate significant incremental revenue compared with non-members, retail loyalty program leaders must anticipate future growth trends and capture the opportunity to differentiate in an increasingly fragmented marketplace.”
Next, read our post about what today’s consumers want from loyalty programs.