Have you heard this one – statistics speak for themselves? It is true for customer loyalty statistics as well.
This is the time to prove what we have discussed in our previous articles –
First we will see few generic customer loyalty statistics and then industry specific loyalty statistics.
Customer Loyalty Statistics:
Acquiring a new customer is five times costlier than retaining an existing customer. (Source: Forrester)
80% of a company’s revenue comes from just 20% of its existing customers. (Source: Gartner)
Probability of selling to an existing customer is 60 – 70% where probability of selling to a new customer is 5-20%. (Source: Marketing Metrics)
Only 1 out of 26 unhappy customers complain. (Source: Customer Experience Statistics)
33% of customers would recommend a brand that offers a quick but ineffective response. On the other hand, 17% of customers would recommend a brand that provides a slow but effective solution. (Source: Nielsen-McKinsey)
A 5% increase in customer loyalty would increase the average profit per customer by 25% – 100%. (Source: TheLoyaltyEffect)
It takes 12 positive experiences to make up one unresolved negative experience. (Source: Understanding Customers by Ruby Newell-Legner)
Customers who rate you 5 on a scale from 1 to 5 are 6 times more likely to buy from you again, compared to ONLY giving you a score of 4.8. (Source: TeleFaction data research)
61% Americans and 54% Europeans switch brands just because of price. (Source: Nelson)
55% of customers would pay extra for a better customer experience. (Source: Defaqto Research)
86% of buyers will pay more for a better customer experience. But only 1% of customers feel that vendors consistently meet their expectations. (Source: CEI Survey, Forbes)
Customer Loyalty Statistics for Marketers:
Loyalty Management Market is expected to grow from USD 1.4 Billion in 2015 to USD 4.0 Billion by 2020. (Source: PR Newswire)
More than 90% of companies currently have some form of customer engagement or loyalty program. (Source: Accenture)
70% of buying experiences are based on how the customer feels they are being treated. (Source: McKinsey)
89% of customers have stopped doing business with a company after experiencing poor customer service. (Source: RightNow Customer Experience Impact Report)
Retail Customer Loyalty Statistics:
The biggest challenges retailers face regarding their loyalty programs relate to technology, strategy, financial management and people/talent.
- Keeping up with the underlying technology (mobile and digital capabilities) or investing enough in technology (40 %)
- Keeping up with competing loyalty programs (33 %)
- Managing the liability and financial complexity of the program (33 %)
- Having enough people and the right kind of talent required for today’s loyalty programs (30 %)
(Source: Accenture research report)
(Source: Accenture research report)
Travel Customer Loyalty Statistics:
68% of 2016 Fliers Belong to at Least One Airline Frequent Flier Program. (Source: airlines.org)
40% of travel loyalty program members tell friends and family about a program following a positive redemption experience. (Source: Collinsonlatitude)
33% of travel loyalty program members actively encourage family & friends to join the program following a positive redemption experience. (Source: Collinsonlatitude)
Hotel Customer Loyalty Statistics:
40% of customers choose to enroll in hotel loyalty/rewards programs based on convenience of locations. (Source: Hotel Loyalty Rewards Program Satisfaction Report 2016)
68% of millennials will remain loyal to a program that offers the most rewards – Cash / Freebies, Upgrades and Discounts. (Source: Internet Marketing Inc)
Restaurant Customer Loyalty Statistics:
Tell us what you think about customer loyalty. Is customer loyalty required in every industry?
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Next article: Importance of Customer Loyalty