How well do businesses actually perform when it comes to customer loyalty?
To answer that question, we’ll comb through key customer loyalty statistics to understand the impact of cultivating customer loyalty on customer behaviour and your bottom line. By the end, you’ll have all the firepower you need to design and implement loyalty strategies to win over your customers and secure long-term financial sustainability.
In the current economic climate, businesses that want to increase profitability must look beyond customer acquisition strategies alone. Nurturing customer loyalty and retention is fast becoming a priority for businesses in 2024 and beyond.
Why? Well, the facts—stats—speak for themselves. As you’ll learn in this blog, building loyalty has several benefits. From greater customer engagement to building a community of brand advocates, loyalty really does deliver on its promises.
Contents
We've broken down the statistics into the following categories:
-
Customer Experience Statistics
Loyalty and Reward Programme Statistics
Loyalty and rewards programmes are often the first choice for businesses looking to boost customer retention and give customers extra value. The statistics in this category show just how valuable these loyalty programmes are and their effect on customer behaviour and sales.
-
75% of customers prefer a brand with a loyalty programme (PR News Wire via TechJury) (Techjury).
Loyalty programmes profoundly impact consumer preferences and often determine where they take their business.
-
Actively engaged loyalty programme members can account for over 45% of your total sales (Touchpoint).
This underscores the substantial contribution of loyal customers to a company's revenue.
-
On average, consumers participate in 16.7 rewards programmes (Exploding Topics).
The high number of memberships indicates the widespread adoption of loyalty programmes across various sectors.
-
89% of loyalty platform end users agree that the rewards available helped influence the decision to renew a subscription and remain a customer (Propello Cloud).
Subscription-based businesses can use loyalty programmes to add value to subscriptions and boost contract renewals and service upgrades. The promise of rewards and discounts provided by loyalty programmes directly influences customer purchase decisions.
-
64% of loyalty programme members will spend more to earn points (Exploding Topics).
This suggests that loyalty programmes effectively incentivise customers to spend more to earn rewards.
-
Participation in quick-service restaurant loyalty programmes grew by 15% in 2022 (PYMNTS).
This growth highlights loyalty programmes’ popularity and relevance in the fast-food industry.
-
59.8% of surveyed customers say membership in a dedicated loyalty programme influences their decision to use a brand’s services (Propello Cloud).
Loyalty programme membership positively influences a customer’s decision to engage with your products and services.
-
The average customer is a member of nearly 15 loyalty programmes but actively uses only about 7 (Bond).
Businesses need to focus on creating engaging and valuable loyalty programmes to maintain active participation.
-
Sephora’s Beauty Insider programme members account for 80% of the company's annual sales (Shopify via 99Firms) (99FIRMS).
This impressive figure showcases the potential of a well-designed loyalty programme to drive a significant portion of a company's revenue.
-
Tesco Clubcard was the UK’s favourite loyalty programme in 2023: Over 35% of respondents voted for the loyalty scheme, significantly ahead of Sainsbury’s Nectar at 17% (Retail Gazette)
Established loyalty programmes that consistently provide value can help businesses maintain a significant lead over competitors.
-
Despite being less than a year old, Asda's Rewards programme was one of the top three loyalty schemes in the UK in 2023 (Retail Gazette).
This rapid rise suggests that new programmes can achieve significant success if they effectively address customer needs and preferences.
-
Starbucks Rewards programme has over 33 million active members, helping them drive record retention numbers (Starbucks Stories & News)
This further proves that a well-designed loyalty programme is essential for customer retention and revenue generation.
Customer Loyalty Statistics
Customer loyalty is a crucial success factor for any business; it directly influences long-term profitability and growth. The following statistics provide valuable insights into the importance of customer loyalty and its impact on consumer behaviour.
-
75% of consumers will choose brands that offer a purchase reward system (The Tech Report)
This emphasises the significance of incentivising customers through rewards programmes to encourage loyalty and repeat purchases.
-
72% of customers stay loyal to at least one brand (The Tech Report).
It’s important to cultivate strong, lasting customer relationships by delivering exceptional products, services, and experiences.
-
Loyal consumers spend more (67%) than new customers (The Tech Report).
This shows the financial benefits of cultivating customer loyalty, as loyal customers spend more and contribute significantly to revenue.
-
68% of customers will switch to competitors if a brand treats them indifferently (Bloomberg Business via Forbes) (Forbes).
Demonstrating care and attention towards customers prevents them from defecting to competitors.
-
80% of your profits come from 20% of your customers (The Tech Report).
This well-known Pareto principle suggests that a small group of loyal customers can have a disproportionately large impact on a company's profitability, making it crucial to identify and nurture these high-value customers.
-
82% of companies agree that keeping existing customers is cheaper than acquiring new ones (The Tech Report).
It’s generally more expensive to attract new customers than to keep existing ones.
-
93% of customers will make repeat purchases after excellent brand experiences (Techjury).
Positive customer experiences boost repeat business. Businesses must focus on delivering exceptional experiences to drive loyalty.
-
87% of customers are willing to exchange their privacy for a better customer experience or reward (Bond).
Customers are willing to share personal data in exchange for personalised experiences and rewards, presenting opportunities for businesses to leverage data to enhance loyalty programmes.
-
77% of consumers have been brand loyal for ten years or longer. (Techjury).
This demonstrates the long-term nature of customer loyalty and the potential for businesses to establish enduring customer relationships.
-
55.3% of customers who love a product will stick with the brand. (Yotpo via TechJury) (Techjury).
The quality of the products and the emotional attachment that customers form with them influence their brand loyalty.
-
89% of consumers prefer Amazon over competitors, with 96% loyalty among Prime members (Feedvisor via CSA) (CSA).
This shows the success of Amazon's loyalty programme, Prime, in nurturing member loyalty.
-
2021 saw a record-high 92% brand loyalty rate for Apple. (iMore).
This is another great example of a brand cultivating loyalty through innovative products and a strong brand identity.
Customer Experience Statistics
We’ve already seen in previous categories how important it is to deliver exceptional experiences. The following statistics drive home that point by emphasising how customer experience drives loyalty, engagement, and business success.
-
Seamless interaction is just as important to 80% of consumers as high-quality products. (Salesforce).
This highlights the equal importance of seamless customer interactions and product quality in shaping customer perceptions and loyalty.
-
65% of consumers expect businesses to change with their needs (Salesforce).
This emphasises the need for businesses to be agile and responsive in meeting evolving customer expectations to maintain relevance and loyalty.
-
80% of customers prefer to shop with brands that offer personalised experiences (Epsilon via McKinsey) (McKinsey).
Customers want tailored experiences that cater to their individual preferences and needs.
-
75% of consumers say a personal experience influences their brand loyalty (The Tech Report).
This reinforces the strong link between personalisation and customer loyalty, as consumers will remain loyal to brands that deliver customised experiences.
-
72% of customers will tell six or more people about a positive brand experience (Esteban Kolsky via Help Scout) (Help Scout).
This highlights the power of positive word-of-mouth marketing, as satisfied customers are likely to share their experiences with others, attracting new customers and enhancing the brand reputation.
-
80% of marketers rate customer experience as a critical competitive differentiator (Salesforce via Frontfootmarketing) (Frontfootmarketing).
There is growing recognition among marketers of the strategic importance of customer experience in gaining a competitive edge.
-
34% of brands treat customers as unique individuals (Salesforce).
This relatively low percentage suggests that while many businesses acknowledge the importance of personalisation, there is still significant room for improvement in treating customers as distinct individuals with unique needs and preferences.
Customer Engagement Statistics
Engaging customers is crucial for building long-lasting relationships and driving retention and revenue growth.
-
With the rise of Gen Z's purchasing power, gamification in loyalty programmes is becoming increasingly important to drive engagement and sales (Retail Gazette).
This trend highlights the need for businesses to incorporate gamified and interactive elements into their loyalty programmes to appeal to younger generations and boost participation.
-
52% of global businesses have invested in mobile technologies in their loyalty strategy (Exploding Topics).
This reflects the use of mobile channels in customer engagement, as businesses try to meet customers where they are and provide convenient, on-the-go access to loyalty programmes and services.
-
75% of global executives intend to invest more in providing hybrid experiences (Deloitte).
This points to the relevance of omnichannel engagement in providing seamless experiences across digital and physical touchpoints to meet evolving customer expectations.
-
60% of consumers rely on recommendations from friends, family, and other consumers (Techjury).
Customer testimonials and reviews help businesses build trust, drive engagement, and nurture loyalty.
-
72% of marketers believe fulfilling client expectations is more difficult (Salesforce).
Customer expectations are constantly evolving. Businesses must adapt and innovate to stay ahead of the curve and maintain customer engagement.
-
57% of customers say they will stay loyal if a negative review is properly addressed (Medium).
Effective customer service and complaint handling can turn a dissatisfied customer into a loyal one.
Sustainability and Aligned Values
In recent years, customers have grown more aware of the environmental and social consequences of their shopping decisions. This has resulted in an increased demand for brands that prioritise sustainability and align with their values.
-
Consumers are 4.5 times more likely to champion brands with a strong purpose (Zeno via Forbes) (Forbes).
Consumers actively support and recommend brands that stand for something meaningful.
-
UK buyers show higher loyalty to businesses that demonstrate significant environmental and social responsibility (Zendesk).
This trend reflects the growing importance of sustainability and social responsibility in shaping customer preferences and loyalty, particularly in the UK market.
-
88% of UK and US customers want businesses to support them in becoming more environmentally responsible. (Futerra via Forbes) (Forbes).
Businesses can differentiate themselves by offering eco-friendly products and services or rewarding customers for sustainable practices.
-
According to 81% of customers, trust is the most crucial factor influencing their brand loyalty (The Institute of Customer Service).
Consumers are more likely to remain loyal to brands they perceive as reliable and transparent.
-
93% of high-performing marketing professionals believe their external messaging supports their business values, as opposed to 70% of their underperforming rivals. (Salesforce).
Communicating company values to customers builds trust and a sense of shared purpose.
-
38% of executives aim to provide more inclusive experiences. (Deloitte).
Business leaders focus on diversity and inclusion to create more welcoming experiences for all customers.
-
70% of customers say traceability is crucial and are ready to pay extra for brands that offer it. (IBM).
Consumer’s demand for transparency in supply chains, presenting an opportunity for brands to cultivate loyalty by offering traceable and ethically sourced products.
Cost of Loyalty and Retention vs. Acquisition
Recognising the financial consequences of customer loyalty and retention vs acquisition is critical for brands looking to enhance their marketing efforts and maximise profits. -
Improving customer retention rates by 5% can boost profitability about 25% to 95%. (Harvard Business Review via Mentor) (Mentor).
This emphasises the financial benefits of focusing on customer retention strategies.
-
Acquisition costs for B2B and B2C brands increased by 50% over a five-year period (Big Commerce).
This trend further underlines the cost-effectiveness of prioritising customer retention over acquisition.
-
82% of brands say customer retention is more affordable than customer acquisition (ProProfs Survey Maker).
There is a consensus among businesses that retaining existing customers is more cost-effective than acquiring new ones.
-
Current customers are 50% more likely to explore new products, and they spend 31% more than new consumers. (BusinessDIT).
Loyal customers are more open to trying new offerings and tend to have a higher average spend than new customers.
-
The possibility of selling to an existing customer is 60-70%, however for new prospects it is only 5-20% (Invesp).
It’s much easier to sell to existing customers than to convert a prospect.
-
Despite the financial benefits of retention, 44% of businesses continue pursuing acquisition over retention, with only 18% concentrating more on keeping customers. (HubSpot Blog).
There’s a disconnect between the proven cost-effectiveness of retention and the actual priorities of many businesses. This creates an opportunity for brands to realign their strategies and invest more in customer retention.
-
In the aftermath of the epidemic, 59% of e-commerce enterprises have prioritised customer retention. (Yieldify via HubSpot) (HubSpot Blog).
The highly saturated landscape of online shopping has encouraged businesses to prioritise loyalty and retention tactics.
Brand Advocacy Statistics
The statistics below show how customer loyalty affects brand advocacy, as well as the relevance of trust and positive experiences in generating recommendations.
-
56% of devoted customers would recommend the brand to their friends and family. (Yotpo via 99Firms) (99FIRMS).
Loyal customers are likely to become brand advocates and share their positive experiences with others.
-
90% of customers will recommend a brand to friends and family based solely on positive experiences with its loyalty programme (Propello Cloud).
Nurturing loyalty via a rewards programme that offers positive experiences and extra value turns devoted customers into brand advocates.
-
95% of consumers say they stay loyal to a company they trust (Salesforce).
Customers are more inclined to stay with and recommend brands they perceive as trustworthy.
-
65% of businesses get new customers via referrals from their existing customers (The Tech Report).
Businesses often rely on recommendations from their current customer base to attract new clients.
-
87% of businesses feel that leveraging data and predictive analytics to improve customer experience gives them a competitive edge (Acxiom via LinkedIn) (Acxiom).
Businesses recognise the strategic value of leveraging data to enhance customer experiences, which can lead to increased loyalty and, consequently, more brand advocates.
-
46% of members say they are happy with their credit card loyalty programmes (Bond via 99Firms) (99FIRMS).
While this statistic indicates room for improvement in credit card loyalty programmes, it also suggests that nearly half of the members are satisfied. This presents an opportunity for these programmes to cultivate brand advocacy among their members.
Back to contents
Emerging Trends in LoyaltyHere are the stats behind the key trends shaping the future of loyalty programmes and customer engagement strategies.
-
By 2027, one in three companies that do not already have a loyalty programme will implement one (Gartner).
There’s growing recognition among businesses of the importance of loyalty programmes, with a significant portion of companies planning to implement them.
-
In an increasingly competitive loyalty market, brands use experiential benefits, like VIP customer service or unique experiences, to differentiate themselves (Retail Gazette).
Brands have shifted towards more personalised and memorable rewards beyond traditional points and discounts to create deeper emotional connections with customers.
-
By 2030, the loyalty management market is projected to have grown to $28.65 billion, expanding at a rate of 23.7% annually. (Exploding Topics).
This projected growth underscores the increasing investment in loyalty management solutions and the overall importance of loyalty in driving business success.
-
78% of marketers claim data drives their customer interactions. (Salesforce).
Marketers increasingly rely on insights from customer data to personalise interactions and improve the overall customer experience.
-
By 2026, 60% of large enterprises will use TX (total experience) to transform their business models (Gartner via Forbes) (Forbes).
More businesses will adopt a holistic approach to customer experience, including all touchpoints and interactions across the customer journey, to drive loyalty and business growth.
-
68% of marketers have a comprehensive strategy in place for switching to first-party data (Salesforce).
With the increasing importance of data privacy and the phasing out of third-party cookies, marketers are relying more on first-party data collected directly from customers.
-
Fast-growing brands use first-party data to create personalised content (Deloitte).
Successful brands leverage first-party data to deliver targeted, relevant content to their customers.
-
The importance of employees as influencers is acknowledged by 89% of C-Suite marketers. (Ogilvy via Everyonesocial) (Everyonesocial).
Business leaders acknowledge the potential impact of their workforce on promoting the brand and gaining customer trust.
Demographic Loyalty Statistics -
70% of Gen Z favour brands that reflect their social views (McKinsey via Penfriend) (Penfriend).
Supporting ESG causes is crucial for Gen Z consumers, as many prioritise brands that reflect their beliefs and contribute positively to society.
-
Millennials: Social media influences the shopping decisions of 70% of millennials (Forbes).
Maintaining a strong and engaging presence on these platforms drives loyalty among this demographic.
-
Following an impersonal experience, 49% of Gen Z are far less inclined to make a purchase, and 27% will quit shopping with the brand (Inspiretec).
Gen Z consumers have high expectations for personalised experiences, and failing to meet them could mean reduced purchases and customer attrition.
-
80% of businesses claim that personalised experiences increase customer spending (Segment).
Personalisation boosts consumer spending across all demographics, emphasising the importance of tailoring experiences to individual preferences and needs.
-
To receive a more personalised experience, 41% of Generation Z customers and 37% of Millennials are prepared to share their interests, tastes, or habits with a business. (PwC)
Engage and retain millennial customers with tailored experiences and benefits.
-
68% of Gen X consumers stick with brands they grew up with (New Digital Age).
Nostalgia and long-standing relationships play a significant role in shaping the brand preferences of Gen X consumers.
-
Boomers: 85% value high-quality customer service and products (Marketing Gazette).
Delivering exceptional customer service and product quality cultivates loyalty among baby boomer consumers, who prioritise these factors in their purchasing decisions.
What Next?
That was quite a ride. But what is the bottom line? What hidden truth do these statistics reveal?
- First, you must adapt your strategies to meet the changing expectations of your target audience. This may involve investing in a loyalty programme with data-driven personalisation and experiential rewards or aligning with the social values that matter most to your customers.
The key is staying attuned to emerging trends and prioritising exceptional customer experiences. This will help you create deep, emotional connections that lead to long-term loyalty and advocacy. - Ultimately, the businesses that will thrive in the years to come must recognise the immense power of customer loyalty and make it a central pillar of their growth strategies.
With the insights and best practices learned from these statistics, you can unlock the full potential of customer relationships and drive sustainable success in a competitive marketplace.
.png){kind=logo}