loyalty statistics
Customer Engagement

13 Surprising Brand Loyalty Statistics

Photo by Stephen Dawson

43% of customers are spending more money at brands they’re loyal to; brands that don’t put their returning customers first are losing out on significant revenue gains.

Customer Retention Statistics: The Highlights

Here are the trends we’re seeing in customer retention and brand loyalty:

●  84% of U.S. adults are loyal to retailers and 82% are loyal to product-brands.

●  65% of a company’s business comes from existing customers.

●  Loyalty program members spend between 12-18% more per year than non-loyalty program members.

●  80% of customers are willing to pay more for a better customer experience.

●  A 2% increase in customer retention can lower costs by as much as 10%.

4 Customer Loyalty Statistics That Show Why You Need to Invest in Customer Retention

These surprising statistics present a strong case for why every business in the United States should invest more of their efforts into facilitating brand loyalty and customer retention.

65% of a company’s business comes from existing customers …

With 65% of your all your business coming from customers who ​already​ know your brand, the future of your business ​depends​ on your ability to retain your customers, and keep them happy.

Even more convincing, 80% of your future profits will come from 20% of your existing customers.

If you want to keep a strong revenue stream for your business in the future, you should be thinking about how to keep your customers coming back.

43% of customers spend more money at brands they’re loyal to …

If you want customers to spend more money at your company, try investing in retention. Three eye-opening brand loyalty statistics hit this point home:

●  43% of U.S. customers spend more with the brands and companies they are loyal to.

●  Loyalty program members spend between 12-18% more per year than non-loyalty program members.

●  And 80% of customers are willing to pay more for a better customer experience.

So, what does this mean for you? Putting marketing effort into pleasing your customers and retaining them means more revenue for your business.

It costs 5 times more to acquire a new customer than it does to retain a returning one …

Another reason why investing in brand loyalty is smart for small businesses? Investing in acquiring new business costs 5 times more than investing in returning business does. A simple customer loyalty statistic shows just how cost-effective a customer retention strategy can be.

Lowering your customer churn rate by 5% can increase your profitability by 25 to 125% …

A small decrease in churn rate can lead to a big increase in profit: Lowering your customer churn rate by 5% could leave to over a 100% spike in profitability.

6 Customer Retention Statistics That Explain Why Your Customers Aren’t Loyal

Why are your customers ​not​ coming back time after time? These customer retention statistics shed light onto your customer’s mindset when deciding who to do business with.

57% of customers would stop using a brand if they had a negative review go unaddressed …

57% of customers listed that they would stop doing business with a brand if they had a negative review go unaddressed despite having received additional communications from the company—such as promotions for their products.

Customers want to feel recognized when they have a negative experience, so an easy way to boost customer retention is to stay on top of responding to reviews—both positive and negative.

Half of all customers stopped doing business with a company immediately after a bad sales and marketing experience …

With half of all customers citing bad sales and marketing experiences as the reason why they don’t stay loyal to brands, it’s crucial that you invest in a top-notch customer experience team.

42% of customers would stop using a brand if the company didn’t have a real-time customer support line …

Customers want immediate contact with help when they need it. 42% would not go back to a company if they didn’t have a live chat, or real-time customer support line.

43% of customers stopped doing business with a company because they lost trust in the company …

Have you invested in brand marketing? If not, customers might not be coming back because they don’t trust you anymore. Almost half of all customers stop doing business with a company if they feel their brand isn’t trustworthy.

68% of customers leave because they feel the company doesn’t care about their business …

More than half of all customers leave because they feel the company is indifferent to their business. Customers can easily choose to go to another company, so convince them to stay by making them feel appreciated.

54% of customers consider no longer shopping with retailers who don’t provide them with engaging content and relevant coupons …

You might have heard that content is king. Turns out, it could be king for customer retention, too. Over half of all customers won’t shop with a retailer that doesn’t provide great content and good coupons.

3 Brand Loyalty Statistics That Show What Keeps Customers Coming Back

On the flip side, what keeps customers loyal? These customer retention statistics show what customers want to see from their favorite brands.

92% of loyal customers ranked price and value for the top reason why they stay loyal to brands …

It’s no surprise that customers stick with the brands that are easy on their wallet but also provide excellent value: A whopping 92% of loyal customers come back for the good prices and value.

56% of customers said they feel more loyal to brands who “get them” …

Customers will stay loyal to you if you show that you’re sympathetic to their priorities and preferences as a consumer. 56% of customers stay loyal to brands who “get them” and 89% of customers stay loyal to brands who share their values.

69% of consumers say choice of retailer is influenced by where they can earn customer loyalty/rewards program points …

Give customers a tangible reason to keep coming back by offering a rewards program for loyal customers. 69% of customers choose their retailer based on where they can earn the most rewards points from loyalty programs.


Originally published by Fundera. You can find more information about Fundera here.

13 Surprising Brand Loyalty Statistics
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