For brands in all industries, acquiring new customers is just part of a successful growth strategy.
Retaining existing customers and building strong brand loyalty is even more important.
So what connects customers to a brand?
It all depends on the client. Price and quality are more important to older consumers, while younger buyers often consider things like environmental and social impact.
Brands can also use incentives, in the form of loyalty and rewards programs, to encourage customers to stick around.
The latest customer loyalty statistics show that even though brands are spending more money on loyalty management, consumers hold the bar high for the brands they are loyal to.
Here are 32 new customer retention statistics for 2022.
Key customer loyalty statistics
Before we dive into the stats in detail, here are some of the most notable stats to get you started:
- 72%of global consumers feel loyal to at least one brand or company
- Price is the #1 factorRetain customers for your favorite brands
- 88%of consumers say it takes three or more purchases to build brand loyalty
- The loyalty management market is worth it$4.43 billion
- The average American consumer is one of them.16.7customer loyalty programs
- 57% of Gen Z Americansare less brand loyal today than before the COVID-19 pandemic
Brand Loyalty Statistics
Brand loyalty is a powerful thing. Customers buy their favorite brands for years, sometimes even for a lifetime. But that doesn't mean brands can be complacent. Poor customer service or misleading messages can turn away even the most loyal customers.
72% of consumers worldwide feel loyal to at least one brand or company (Zendesk)
More than two-thirds of customers around the world say they have some level of brand loyalty. But loyalty varies greatly from country to country.In the US, more than 80% of customers are brand loyal.In Japan, brand loyalty drops to just over 50%.
59% of US consumers say that once they're loyal to a brand, they'll be loyal for life (Acquia)
When it comes to customer loyalty longevity, Americans have beaten the rest of the world.The United States has the highest percentage of lifetime customer loyalty in the world.
75% of US consumers say they are more likely to be loyal to brands they personally understand (Acquia)
While consumers prefer a personalized experience, they aren't impressed with how brands use their personal information.61% think that brands should be more careful when handling personal data.anticipate customer needs.
send blueis an email marketing platform focused on creating personalized messages. Search growth increased by 160%.
88% of consumers say it takes three or more purchases to build brand loyalty (Yotpo)
37% say they need to make five or more purchases before committing to a brand, while only 12% say they are ready to commit after two.
Price is the number one factor in customer retention for your favorite brands (Zendesk)
In a recent survey, 62% of global customers listed price as an important factor, compared to customer service (57%) and product or service offerings (54%).Only 27% of consumers globally see personalization and promotions as important for brand loyalty.
56% of global consumers say customer service is "very important" when making brand and loyalty decisions (microsoft)
Customer service standards are at an all time high.59% of consumers believe that customer service is more important than a year ago.
55% of US and UK consumers say they trust brands less than in the past (hubspot)
81% of the same group trust the advice of friends and family more than brand messages. 71% don't trust sponsored social media posts and 65% don't trust traditional advertising.
61% of consumers worldwide have broken a relationship with a brand due to poor customer service (microsoft)
Customer service is critical to maintaining customer loyalty.Nearly half (48%) of customers abandoned a brand last year due to customer service issues.
Lies about product performance are the number one reason customers switch brands (YouGov)
31% of US consumers would switch brands if they found out their favorite company was lying about product performance or efficiency.
36% of US consumers have switched brands during the COVID-19 pandemic (McKinsey)
3 in 4 Americans have changed their shopping behavior during the COVID-19 pandemic.73% of US consumers who have switched brands intend to remain loyal to their new brand.
Loyalty Management Statistics
Brands don't just expect customer loyalty. They are actively looking for ways to attract loyal buyers. Here's a look at the loyalty management market and how companies are working behind the scenes to build brand loyalty.
The customer loyalty management market is valued at $5.57 billion (fortune business information)
Brands invest heavily in loyalty management and are ready to invest even more in the future.The loyalty management market could be worth as much as $24.44 billion by 2029.This represents an annual growth rate of 23.5%.
Loyalty management represents 23% of spending in the customer ecosystem of global brands (commercial thread)
Brands collectively spend $323 billion a year on their customer ecosystem, which includes loyalty management, customer retention, customer relationship management (CRM), and technology and transaction enablers.Brands spend over $75 billion annually on customer loyalty management alone.
69% of brand executives say they have increased their investment in customer retention in the last two years (commercial thread)
Investments in loyalty appear to be paying off. More than half (55%) of these leaders say they will continue to increase their loyalty investment over the next two years.
Acquiring new customers is the number one goal for brands that invest in customer retention strategies (Harvard Business Review)
Brands that invest in customer retention achieve several positive results. New customer acquisition is the most common, with 65% of brand executives listing it as their top goal. Other desired outcomes include creating emotional connections to the brand (57%), gaining insight into customer preferences (50%), and enhancing brand messaging (49%).
Mobile solutions are the top technology investment in customer engagement for global brands (Harvard Business Review)
52% of global brands invest in mobile devicesTechnologies like digital wallets as part of your customer retention strategy.
Only 42% of brand executives believe that their customer retention strategies are effective (Harvard Business Review)
Outdated loyalty strategies could be to blame46% of brands say their customer retention strategies are not innovative enough.
50% of marketers cite brand loyalty as one of the most important goals of their content marketing strategies (digital information world)
Content marketing is primarily used to acquire new customers, but marketers are also finding ways to use content to build loyalty. Consumer brands are more likely to use content in their customer engagement strategies than B2B companies.
Ecommerce companies are now more focused on customer retention than conversion or acquisition (Give up)
The growing e-commerce industry has shifted its focus from acquiring new customers to retaining existing ones in recent years. Most are turning to customization to achieve this.74% of eCommerce brands report increased efforts to personalize their websites.
customer loyaltyit's one of the many tools brands use to increase customer loyalty.
Loyalty program statistics
One of the most effective customer retention strategies is to run a loyalty or rewards program. Brands use free and paid membership programs to build customer loyalty. With these memberships, shoppers can earn points, enjoy free shipping, and enjoy other perks.
The most common reason consumers dislike a loyalty program (loyalty magazine)
45% of consumers do not evaluate how long it takes to earn rewards from their loyalty programs. 31% find it very difficult to earn rewards while27% don't find rewards valuable enough.
The average US consumer participates in 16.7 loyalty programs (bond brand loyalty)
Of these loyalty and rewards programs, these are the most usedCredit cards, high frequency retail, medium frequency retail, travel and hospitality.
seek rewardsis a mobile application that encourages users to shop with their favorite brands. Search queries increased by 2,400%.
64% of loyalty program members are spending more to maximize their point earnings (bond brand loyalty)
Points are an effective incentive for customers to spend on brands. This incentive increases in high-income population groups.78% of consumers who earn $200,000 or more align their spending habits with maximizing points.
62% of consumers spend more on a brand after signing up for a paid loyalty program (McKinsey)
Paid loyalty programs give customers an incentive to stay loyal to brands.59% of paying loyalty members are more likely to choose this brand than the competition., and 43% are more likely to shop weekly.
Consumers are twice as likely to spend money on a brand with a paid loyalty program than with a free loyalty program (McKinsey)
60% of consumers spend more on a brand when they have a paid loyalty membership. With free subscriptions, that number drops to just 30%.
70% of consumers say membership fees are the top reason they don't join a loyalty program (screw)
While paid loyalty programs can motivate shoppers to spend more, they can also turn potential customers away.31% of consumers say high fees are the main reason they cancel a loyalty membership.
58% of US shoppers expect free shipping and no minimum order requirements with their paid loyalty plans (political)
39% of shoppers expect same-day delivery, while 31% expect to find more purchases than in-store.
Customer Loyalty Demographics
People are loyal to brands for a variety of reasons. However, when we look at broader demographics, patterns begin to emerge.
American women are 15% more likely than American men to participate in a loyalty or rewards program (electronic marketer)
68% of American women sign up for a loyalty program compared to just 59% of American men.
In the US, people ages 55-64 are more likely to participate in a loyalty or rewards program (electronic marketer)
71% of Americans 55-64 participate in at least one loyalty program, while only 43% of Americans 18-24 are members of the loyalty program.
Millennials are more likely than Gen Xers and baby boomers to write positive reviews about their favorite brands (KPMG)
71% ofmillenniasay they would leave their favorite brands with good reviews, compared to 66% of Gen Xers and 59% of baby boomers.
Disappointing rewards are the number one reason millennials are leaving loyalty programs (political)
More than half (57.7%) of Millennials say they would leave a brand's loyalty program if the rewards weren't attractive or relevant enough. Other reasons for dropping out include waiting too long to earn points (48%), not enough opportunities to earn points (47.8%), and programs that are too complicated (45%).
Millennials are 14 times more likely to access loyalty programs from smartphones than from computers (political)
Mobile is the preferred platform for rewards programs according to millennials. 46% prefer mobile apps, 28% SMS links and 11% mobile wallets.
Generation Z is more willing to pay more for ecological or socially responsible clothing brands (political)
74% ofGenZShoppers say they would pay more for clothing products that are environmentally or socially conscious. 71% of Millennials shared this sentiment, compared to just 59% of Gen Xers.
Sustainable packaging materialsthey are a requirement for many Gen Z and Millennial shoppers.
57% of Gen Z Americans are less loyal to brands today than they were before the COVID-19 pandemic (site core)
80% say they are more likely to try new brands than before the pandemic and38% give a brand only a second chance before abandoning it in favor of a competing brand.
As these statistics show, customer retention is a complex topic with many moving parts.
Brands have always had to focus on offering great value for money and customer service to build a loyal customer base. Now they must also consider how they feel about a variety of social and environmental issues.
Innovation can play a crucial role in future customer retention. Mobile and personalization solutions allow brands to create individual experiences for their customers. And when customers feel understood by a brand, they are more likely to buy from that brand in the future.
As brands continue to innovate, they must continue to listen to their customers, or risk losing them to the competition.
If you liked these customer loyalty statistics, check it out.11 top consumer trendsmi6 personalization trends.