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43 Interesting Stats about Customer Loyalty

43 Interesting Stats about Customer Loyalty

Customer Loyalty plays a great role in the growth of any business. In order to stand strong in a competitive market, it is important to have a base of loyal customers. Loyal customers are one of the most crucial asset of your business. They not only give you business but also help in increasing it by their good word of mouth.

Customer Loyalty is the action of choosing a particular brand, business or an organization again over others for buying good and services. When your customers become loyal to your brand or organization, they become your lifetime customers and over that, also attract a lot of other customers by recommending your brand to others.

The concept of the famous customer metrics NPS® is also based on customer loyalty and likeliness of the customers to recommend a brand to their friends and colleagues.

But the question to focus on is that how do your customers become loyal or how to create and increase your bunch of loyal customers? Here we are with some useful statistics which will help you understand what creates Customer Loyalty and how you can maximize it.

What stops Customers from becoming Loyal

To understand Customer Loyalty and what creates it, you need to understand first what stops customers to become loyal. These stats will help you know the mistakes that are venomous for Customer Loyalty and lead to customer churn along with a bad word of mouth in the market and how you can work on them to improve Customer Experience to make your customers loyal.

60% of American customers say they'll consider switching companies following two to three instances of poor service.
- American Express (Click here to Tweet this)

Over $62 billion is lost annually by American companies due to poor customer service.
- NewVoiceMedia (Click here to Tweet this)

32% of all customers would stop doing business with a brand they loved after one bad experience.
- PWC (Click here to Tweet this)

Faced with poor customer service, 20% of consumers would complain publicly via social media.
- NewVoiceMedia (Click here to Tweet this)

59% of consumers would try a new brand or company for a better service experience.
- American Express (Click here to Tweet this)

85% of consumers churn because of poor service that could have been prevented.
- Kosky (Click here to Tweet this)

Churn can increase by up to 15% if businesses fail to respond to customers over social media.
- Gartner (Click here to Tweet this)

30% of consumers are switch providers because they feel that there is no reward for loyalty. 
- CallMinar (Click here to Tweet this)

48% of all consumers have left a business’ website and made a purchase elsewhere because the experience was poorly curated.
- Accenture (Click here to Tweet this)

Following a negative customer interaction, 58% of Americans would never use that company again. 
- NewVoiceMedia (Click here to Tweet this)

About 50% of loyal customers have left a company for a competitor who was able to stay more relevant and better satisfy their needs.
- InMoment (Click here to Tweet this)

54% of customers will stop shopping with a brand if it doesn't provide engaging content or relevant coupons.
- Fundera (Click here to Tweet this)

57% of people would stop using a brand if their negative review is left unanswered.
- Fundera (Click here to Tweet this)

Why Customer Loyalty is so important?

These stats will help you know the importance of Customer Loyalty and why you should leave no stone unturned to increase loyalty among your customers.

Happy American customers will share their positive experiences with and refer about 11 people.
- American Express (Click here to Tweet this)

Angry American customers will share their negative experience with and give anti-referrals to about 15 people.
- American Express (Click here to Tweet this)


60% of loyal customers will purchase more frequently from their preferred companies.
- InMoment (Click here to Tweet this)

77% of customers have maintained loyal relationships with their preferred companies for 10 or more years.
- InMoment (Click here to Tweet this)

Loyal customers spend 67% more with a business than new ones.
- Thanx (Click here to Tweet this)

81% of customers trust recommendations from family and friends over those from companies.
- Hubspot (Click here to Tweet this)

65% of a company’s business comes from existing customers.
- Fundera (Click here to Tweet this)

Building a long-term business relationship with a new customer is 16X more costly than cultivating the loyalty of an existing customer.
- Annex Cloud (Click here to Tweet this)

What factors drive Customer Loyalty?

These stats will help you understand the major factors that determine and boost Customer Loyalty.

93% of customers are likely to make repeat purchases with companies who offer excellent customer service.
- Hubspot (Click here to Tweet this)

82% of customers rate an immediate response (30 minutes or less) as important or very important when they have marketing or sales questions, and that percentage rises to 90% with support questions.
- Hubspot (Click here to Tweet this)

68% of American customers believe a great customer service interaction is fueled by a pleasant experience, while 62% say a knowledgeable experience and only 42% say a quick experience.
- American Express (Click here to Tweet this)

Customers with an emotional relationship with a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, rather than the average rate of 45%.
- Motista (Click here to Tweet this)

26% of customers feel more loyalty to brands, while 21% of customers feel more loyalty to products.
- InMoment (Click here to Tweet this)

82% of customers feel more positive about a brand after engaging with personalized content.
- Demand Metric (Click here to Tweet this)

Music can improve brand favorability by up to 46%.
- Man Made Music (Click here to Tweet this)

Price and value are one of the top reasons to stay loyal to a brand for 92% of customers.
- Business Wire (Click here to Tweet this)

Product and quality are also one of the most important reasons to stick with a brand for 79% of the customers.
- Business Wire (Click here to Tweet this)

77% of consumers will stick with a brand that resends lost or damaged items with fast shipping.
- Forbes (Click here to Tweet this)

71% of customers think that Variety and Selection are also one of the most important factors which tempt them to stick to a brand.
- Business Wire (Click here to Tweet this)

56% of consumers agree that personalized rewards improve their opinion of a brand.
- Annex Cloud (Click here to Tweet this)

60% of customers say unexpected rewards are the biggest reason they'll stay loyal to a brand.
- SAP (Click here to Tweet this)

Facts about Customer Loyalty Programs

A Customer Loyalty Program is a marketing strategy that is used to encourage the customers buying again and again from the same brand or business by recognizing and rewarding their loyalty by offering some benefits of using the same brand or business going forward. Here are some stats that tell how these loyalty programs help businesses and what do customers think about and expect from these programs.

78% of consumers want a loyalty program that allows them to redeem their rewards more easily.
- Collinson Latitude (Click here to Tweet this)

57% of people want to engage with a loyalty program via their mobile device, but only 51% have an app that's associated with their program.
- Bond (Click here to Tweet this)

55% of consumers enrolled in customer loyalty programs use them infrequently.
- PR Newswire (Click here to Tweet this)

73% of buyers think loyalty programs should be a way for brands to show loyalty to customers.
- Kitewheel (Click here to Tweet this)

Members of loyalty programs generate between 12% and 18% more revenue than non-members.
- Alida (Click here to Tweet this)

52% of loyalty program members prefer using a mobile app for to track and redeem loyalty rewards.
- PDI (Click here to Tweet this)

Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program and 77% of people prefer to continue services with a brand if it has a loyalty program.
- Bond (Click here to Tweet this)

52% of American customers will join a loyalty program with a preferred company.
- Yotpo (Click here to Tweet this)

66% of marketers perceive loyalty programs to be a way for customers to show their loyalty to a brand. 
- Kitewheel (Click here to Tweet this)

So we can conclude that Customer Loyalty is the outcome of the experiences you provide to your customers. It is something to be earned by providing maximum Customer Satisfaction by focusing on aspects like product, price and more importantly customer service and effective feedback management. And when you earn a bunch  of loyal customers, you can reward them with the help of Customer Loyalty programs to motivate them maintain their loyalty. 

Know More about How to Build Customer Loyalty for Improving Business Revenue

Published on Jan 14, 2021. Updated on Jan 14, 2021.



Nikhil Dawer

Written by Nikhil Dawer

Jan 14, 2021

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