2021 Report: How Brand Loyalty Impacts Customer Lifetime Value
From adding an extra sweater to your cart to only buying a specific brand of cereal, customer loyalty brings customers back. Growing your loyal customers not only makes people happy, it also keeps your business moving forward with repeat customers and referrals. Customer loyalty matters.
Our survey of over 7,500 online shoppers provides an inside scoop on the value of customer loyalty and the influence it can have on a brand’s success. Read on to learn what our survey discovered regarding brand loyalty, customer service experiences and online reviews…
Please contact us if you have any additional questions or would like to request an interview, feedback or perspective on any of the topics covered.
Geoff Smith, Managing Partner & Co-Founder
Brand Loyalty Statistics
Having strong customer loyalty helps your business continue to delight and serve your clients. Here are some important statistics to keep in mind as you evaluate the value of customer loyalty strategy and programs.
- 36% of buyers say that they’re so loyal to a brand that they won’t consider purchasing from a competitor
- For 87% of people, their top reason for increased purchase frequency was regular discounts and coupons offered to existing customers
- Product quality is the top reason why customers are loyal to a brand. A surprising 78% of buyers said this is the most important factor for brands they buy from.
- 44% of customers are loyal to a brand because of their reputation, fostering a sense of community around a brand
- 74% of buyers would spend more money to purchase the same item from a brand they consider themselves loyal to
Customer Experience & Customer Support Stats
There’s no doubt that having great customer support keeps customers loyal to your brand. But what actually leads to customers feeling positive about an interaction with a company? Here are some statistics that show exactly what matters.
- 63% of people ranked tone of communication as important during customer support interactions
- 44% of customers ranked knowledge and ability to resolve an issue as the most important factor for customer support
- 67% of consumers indicated that they would stop doing business with a brand after just one poor customer support experience
- 46% of consumers believe that the mission statement of a particular brand is an important differentiator among the competition.
- 3 out of 5 people expect to receive customer service on their platform or channel of choice including: email, phone, text message, social media and in-person.
Loyalty Program Statistics
Customer loyalty programs are common ways businesses reward their returning customers. These programs may include offers like purchasing a number of items or make a certain number of visits and receive a free item in return. They may also share additional savings opportunities and other coupon codes the customer can take delight in. Here are some important insights to for customer loyalty programs:
- 91% of buyers would join a customer loyalty program if financial benefits are included in the membership.
- 89% of customers indicated that they were not willing to pay money in order to join a customer loyalty program. They prefer easy-entry and no fees.
- 68% of consumers prefer to use mobile apps on their devices rather than having to carry around physical cards to scan or swipe when they shop.
- 84% of consumers indicated that they were a part of at least three customer loyalty programs.
- 56% of consumers are not willing to join a loyalty program when the process to register or create an account requires them to share too much information than they are comfortable with.
Online Review Statistics
When customers are happy or upset with the service and experience with your brand, they may share their comments online. These online reviews can speak a lot into your brand reputation, whether you want them to or not. Keep these statistics in mind as you consider the impact of positive reviews on a business:
- 4 out of 5 consumers indicated that they would avoid a particular brand if it had at least one negative online review, even if they had been interested in purchasing.
- 81% of consumers would provide a negative review of a brand after only one bad experience.
- 43% of consumers indicated that they would only provide a positive review of a brand if they had an exceptionally successful and satisfying experience.
Negative reviews are easy to get. It’s those positive online posts and comments that can help boost your business and drive customer loyalty in the long-run.
In Summary: 11 Key Insights On Customer Loyalty
These findings have important implications as you strategize and conduct your business. Overall, customer loyalty is something worth your time and resources. How your customer feels about your brand and the actions they take out of that attitude could either be highly beneficial or damaging to your reputation. Here are some specific results you may want to align your processes with:
- Customers who are loyal to your brand won’t need to shop around to find alternatives; they rely on your business.
- Focusing on quality, support and reputation can lead to better customer loyalty.
- Brands with a developed loyalty reputation see higher sales from their reliable clients and customers.
- Providing a positive customer experience can lead to a boost in brand loyalty.
- Organizations that emphasize tone of communication from their brand, providing credible and knowledgeable customer support teams and a personalized experience can cultivate a positive customer experience that helps to build loyalty.
- Each and every conversation and encounter with their customers should be aligned with providing a positive experience that builds relationships and boosts brand loyalty.
- Crafting an intentional mission statement can help set your brand apart from the competition.
- Financial incentives increase the chances that customers will return.
- Customers don’t limit themselves to just one loyalty program; they join when and where they see as necessary and beneficial.
- Make loyalty programs easy to join and simple to sign up with limited requirements and absolutely no fees.
- Online reviews can be highly significant in how your brand is perceived online, transferring to real sales and happy customers.
With key findings like these, customer loyalty is something a brand’s time and attention. Yet loyalty means more than making customers happy. It involves presenting a brand intentionally and in alignment with customer needs. Often, effective customer loyalty programs incorporate deals and other savings opportunities regularly.