Loyalty marketing goes beyond simple points, cashback and cards. It is about the connection of a customer and the brand, about a special bond.
Jan 31, 2021 · 5 min read
Terms like customer retention, customer loyalty, loyalty marketing are familiar not only to marketers but also to business owners, managers, and those responsible for business development. This happened because having a loyalty program for the customers is a simple way to boost sales, acquire new clients, and retain the existing ones. Almost all the consumers wish to feel individually appreciated, and valued for sticking to that particular business.
Member benefits, membership perks, personalized customer support, and communication make customers buy more and more, pay for using premium features, bring in their friends, spread the word, and help to build and strengthen the business day by day.
There is well-known research by Bain & Company, along with Earl Sasser of the Harvard Business School states that increasing customer retention by just 5 percent boosts profits by 25 to 95 percent. It’s rather impressive, right?
We have decided to collect some valuable statistical data on customer loyalty and retention marketing, so as to show you the huge impact it can have on sales and business success.
61.08% of consumers stay loyal to 1-5 brands, 26.19% are loyal to 6-10 brands, and 5.68% are loyal to 11-20 brands (Yotpo)
80% of customers are more likely to buy a product or service from a brand that provides personalized experiences (Epsilon).
More than 50% of consumers state their loyalty depends on the brand or product/service (InMoment)
26% of customers said they are inclined to feel more loyalty to brands vs. products (InMoment)
Well-known brands for customer loyalty include: Airbnb, Netflix, Waze, Lyft and Nike (Bond Brand Loyalty)
51% of U.S. consumers are loyal to brands that communicate with them through their preferred channels of communication (Accenture)
4 out of 5 people tend to engage with a brand that offers incentives (Loyalty360)
95% of loyalty program members are more likely to engage with brands through a mix of new, emerging, and growing tech, including augmented reality, virtual reality, card-on-file, and more (Bond)
When asked to associate a variety of terms with the brands they are loyal to, Millennials were most likely to associate well priced given the quality (85%), reliable (81%) and high quality (80%) (Morning Consult)
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)
41% of U.S. consumers are loyal to brands that offer them the opportunity to personalize products to create something that is bespoke to them (Accenture)
75% of consumers tend to make a purchase from a company that knows their name and purchase history and recommends products based on their preferences (Twilio)
64% of clients find the customer experience more important than price when making a purchase (Iperceptions)
42% of U.S. consumers are loyal to brands that their family and friends do business with (Accenture)
39% of U.S. consumers feel loyal to brands that connect them with other providers, giving them the ability to exchange loyalty points or rewards (Accenture)
81% of emotionally connected consumers will not only promote the brand among their family and friends, but they will also spend more (Capgemini)
20% of consumers defined brand loyalty as repeatedly buying from the same brand (Rare)
15% of consumers defined brand loyalty as a strong feeling of allegiance (Rare)
11% of consumers defined brand loyalty as convincing customers to love your brand over and above others (Rare)
68% of millennials report that they will not be loyal to a brand if that brand does not have a good loyalty program. (Annexcloud)
Of course, this list is far from being complete. Hundreds of companies conduct research on retention markeing and loyalty marketing. And the results show that brands that value customer loyalty, personalized communication and innovative approach, step ahead and have the solid market share.
Digital Marketing Specialist, Strategist, Content Writer at RetentionForce.
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