Everything You Need To Know About Customer Loyalty [Statistics]
In a fiercely competitive market, retaining customers can be one of most challenging aspects of running a business. Consumers attention spans are shorter than ever, and relying on excellent service and a great product isn’t enough.
To keep up with the complex customer journey, merchants have turned to loyalty programs and rewards to keep their customers coming back and engaged from end to end.
And loyal customers have serious return; a loyal customer is worth 10 times as much as their first purchase.
Need more convincing? These 12 loyalty program statistics prove the ROI of deploying a digital loyalty program.
The Loyalty Program Landscape
- 77% of consumers participate in a retail loyalty program. (Accenture)
- The average customer belongs to 14 loyalty programs. (Bond)
What Drives Loyalty?
- 92% of loyal customers rank price and value as the top driver for loyalty to specific retailers, followed by product/quality at 79% and variety/selection at 71% (ICSC)
- 69% of consumers say choice of retailer is influenced by where they can earn customer loyalty/rewards program points whereas 57.4% of consumers join loyalty programs to save money, 37.5% to receive rewards. (Invesp)
- 54% of consumers consider no longer shopping with retailers who do not provide them with relevant content and coupons. (CMO Council)
- 127.5 million Americans using digital coupons in 2016, a growth rate of 5.2% (eMarketer)
- 85% of loyalty program members prefer interacting with their favorite loyalty program online. (Collinson Latitude)
- 57% of consumers want to engage with their loyalty programs via mobile devices, but 49% don’t know whether there is an app associated with their loyalty program. (Bond Loyalty Report)
The Impact of A Loyalty Program
- 87% of consumers say that, where a company has a good loyalty program, they have continued purchasing from that brand over the last few years, and 33% of people have switched brands because the company they shifted their purchasing to had an appealing loyalty program. (Chief Marketer)
- 6.5% of millennials considered themselves brand loyal, and those who prefer personalized communications have a 28% higher brand loyalty than those who do not. (SmarterHO)
- 5-20% probability of selling to a new customer; 60-70% probability to sell to an existing customer. (HelpScout)
- 50% of consumers changed behavior changed their behavior to reach a higher tier within a loyalty program. (Invesp)
Don’t miss out on the opportunity to sign more customers up and keep them more engaged with the help of simple promotion tactics. With Revel Systems you can simplify customer participation and design a loyalty program that makes your business more money. Learn more about Revel System’s loyalty program and see how a loyalty program can drive business.