Customer loyalty is essential to your brand’s success. Great relationships are what keeps customers coming back, referring your products and services to others, and spending more over the long term. But building loyalty and keeping customers active in your loyalty programs are ongoing challenges, regardless of your market or vertical. Plus, the nature of loyalty continues to evolve, particularly in response to the COVID-19 pandemic. Here are 20 loyalty stats that illustrate the state of customer loyalty today, and the trends and opportunities that you need to know about to build stronger and more profitable relationships with your customers.
Loyalty programs are popular, but retention and engagement are key challenges.
These stats show it’s crucial to take proactive steps to communicate with customers about your loyalty program, as well as provide real value that gives them more reasons to remain loyal to your brand.
- 90% of US adults belong to at least one loyalty program and 53% are in three or more.
- On average, consumers have seven active loyalty memberships in their wallet. However…
- More than half of loyalty memberships are inactive.
- More than one in three consumers who do not belong to any loyalty programs say it is because they are not aware of any.
- Of the three quarters of Americans who changed their shopping behavior since COVID-19 began, around 40 percent say they have changed brands, with the level of brand switching doubling in 2020 compared to 2019.
- 62% of people who have changed their brand preference during the COVID-19 pandemic will make that a permanent change before the pandemic is over.
Customer loyalty and loyalty schemes are major drivers of key performance indicators.
Loyalty translates to more revenues, recommendations and reviews. Plus, your loyal customers are more likely to stick around even when things don’t go as planned.
- Loyalty leaders grow revenues roughly 2.5 times as fast as their industry peers and deliver two to five times the shareholder returns over the next 10 years.
- 72% of consumers say they are more likely to recommend brands with a good loyalty program.
- 78% of consumers say loyalty programs make me more likely to continue doing business with brands.
- 81% of Millenials say that being a member of a loyalty program encourages them to spend more with the company.
- 71% of Millennials say they are likely to write positive reviews about a brand they are loyal to.
- When a customer is loyal to a brand, 46% will remain loyal even after a bad experience.
CX and personalization are crucial to loyalty program success.
Today’s increasingly mobile consumers demand personalized and relevant content from the brands they trust, as well as options ( like Mobile Wallet) that make it easy to participate and unlock valuable incentives and rewards.
- 43% of shoppers will unsubscribe from loyalty program messages if the content is not relevant to them.
- Over 57% of members prefer to interact with their loyalty program on mobile devices.
- 94% of consumers who give a company a “very good” CX rating are likely to purchase more products or services from that company in the future.
- Customers are 7.5X more likely to recommend a brand with a loyalty program that achieves high levels of personalization along the member lifecycle, and 6.4X more likely to modify the amount spent to maximize points.
- Globally, 61% of consumers agree that loyalty schemes are too hard to join and/or earning rewards is too difficult.
- 78% of Millennials say they would switch to a company that offered a better program.
- Six out of ten consumers say they are loyal because they feel a personal connection to a company.
- 95 percent of customers are more likely to be loyal to a company they trust, while 92 percent are more likely to purchase additional products and services from them.
As these stats show, loyalty matters. But it’s essential to get it right. Brands that can meet the demand for personalized, convenient, and streamlined mobile experiences are in the best position to build stronger relationships that lead to a lifetime of value.
For more loyalty insights and ideas to help grow your loyalty program, check out our recent webinar 7 Ways Mobile Can Accelerate Loyalty Program Growth.
Originally published at airship.com.