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70 statistics about customer loyalty programs — and what you can learn from them in 2024

Customer loyalty is hugely profitable

1. The loyalty program market is growing rapidly. Forecasts predict that the global loyalty management market, which is currently worth around $8.6 billion USD, will be worth over $18.2 billion USD by 2026. (Markets and Markets
2. 93% of consumers are more likely to make repeat purchases at companies with excellent customer service. (HubSpot)
3. Revenues for businesses that prioritize customer service rise 4-8% above their market. (Bain)
4. After the original purchase, the likelihood of a customer making a second purchase is close to 30%, and after they make a second purchase the likelihood of a third jumps past 50%. (RJ Metrics)
5. On average, loyal customers are worth up to ten times the value of their first purchase. (Office of Consumer Affairs)
6. Increasing customer retention by 2% can have the same impact as reducing costs by 10%. (Bain and Co)
7. The majority of a customer’s 365-day CLV is realized within the first 30 days as a customer. 65% is realized on day 1, and that grows to 79% by the three-month mark. (RJ Metrics)
8. The cost of bringing a new customer to the same level of profitability as an existing one is up to 16 times more. (MarTech)
9. 80% of a retailer’s business comes from 20% of its customers. (BRP)
10. The top 10% of customers on average are worth 6 times more than the average customer. The top 1% of customers are worth 18 times more than the average customer. This means a single customer in the top percentile will spend more than the entire lower 50% combined. (RJ Metrics)
11. 86% of consumers recommend brands to which they are loyal to other people. (CRM Xchange)

There’s a wide range of factors that influence customer loyalty

12. Over three-quarters of surveyed consumers (81%) reported feeling positive towards brands that offer free or discounted shipping. (LoyaltyLion)
13. 76% of consumers feel positive or very positive about brands that offer unconditional discounts. (LoyaltyLion)
14. Alternative incentives to discounts also make customers feel positive about brands. 77% said loyalty points would make them feel good, 72% said early access to sales and 70% said early access to new products (LoyaltyLion)
15. 86% of customers say an emotional connection with a customer service agent would make them continue to do business with the company. (Forbes)
16. 48% of people expect specialized treatment for being a good customer. (Accenture)
17. 66% of customers say they would join a loyalty program if they could create ongoing connections with a brand they like. (LoyaltyLion)
18. 77% of consumers say they favor brands that ask for and accept customer feedback. (Microsoft)
19. 61% of consumers think surprise gifts and offers are the most important way a brand can interact with them. (AP News)
20. 73% of customers agree that customer experience helps to drive their buying decision. (PWC)

Shoppers value values

21. Now more than ever consumers shop in line with their values. In fact, two out of three Americans told researchers that social values now shape their shopping choices. (McKinsey)
22. Today, purpose-driven consumers, who choose products and brands based on how well they align to their values, now represent the largest segment (44%) of consumers. (IBM)
23. In recent years, consumers have become more concerned with a brand’s social impact. Indeed, 88% of consumers want businesses to help them make a difference. (Forbes)
24. 68% of customers say they would be loyal to a brand if it shared their values. (LoyaltyLion)

Customers can be very loyal to their favorite brands — and not at all to those who deliver poor experiences

25. 50% of US consumers have left a brand to which they were previously loyal for a competitor. (HubSpot)
26. 77% of consumers say they stayed loyal to specific brands for 10 years or more. (InMoment)
27. Satisfied US customers will share their positive experience with 11 different people. (BusinessWire)
28. 55% of customers say they would be loyal to a brand if they had an emotional connection to it. (LoyaltyLion)

Customer spending habits are ever-changing

29. 40% of US adults say that they enjoy in-store shopping a lot less now compared to how they felt before the pandemic. (Forrester)
30. Hybrid shopping is the primary buying method for 27% of consumers and 36% of Gen Z – more than any other generation. (IBM)
31. 95% of loyalty program members want to engage with their brand’s program through new and emerging technologies. (GlobeNewsWire)
32. 78% of consumers prefer to access rewards and incentives online and want them immediately. (Virtual Incentives)

Loyalty reward programs are a huge driver of customer spending — and acquisition

33. Over 70% of consumers are more likely to recommend a brand if it has a good loyalty program. (Bond)
34. 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience. (eMarketer)
35. 26% of respondents are more likely to shop repeatedly with a brand that offers a loyalty program. (PwC)
36. Organizations with a tiered loyalty program reported a 1.8x higher return on investment than those without tiers. (Antavo.com)
37. Of brands that offer a loyalty program, 81.9% plan to increase or significantly increase their investment in customer loyalty over the next three years. (Antavo.com)
38. 53.6% of brands planning to launch their loyalty program in the next two years said that their program would be more “emotional” than “rational”. (Antavo.com)
39. Loyalty program members spend, on average, up to 40% more than customers who aren’t loyalty program members. (LoyaltyLion)
40. When redeeming their rewards, loyalty program members spend up to 164% more than non-loyalty members. (LoyaltyLion)
41. The purchase frequency of redeeming loyalty program members is 73% higher than non-redeeming members. (LoyaltyLion)
42. Members of loyalty programs generate between 12 and 18% more incremental revenue growth per year than non-members. (Accenture)
43. 75% of companies see a return on investment from their loyalty program. Only 6% do not, and the rest simply aren’t tracking. (Experian)
44. 66.3% of millennials indicate that they are more likely to shop from stores where they are part of a loyalty program. (Aruba)
45. A customer who joins your loyalty program is 47% more likely to make a second purchase than a customer who doesn’t. (LoyaltyLion)
46. The average basket size of customer that uses a loyalty reward in a purchase is 39% higher than the basket size of a customer that doesn’t. (LoyaltyLion)
47. 69% of consumers say their choice of retailer is influenced by the ability to earn customer loyalty and reward points. (Invesp)
48. 86% of consumers are more loyal to the brands in whose reward programs they participate. (Citi Group)
49. Customers who redeem points from a loyalty program have a total spend that is 2.5 times that of a non-member and 1.5 times that of a member who doesn’t use rewards. (LoyaltyLion)
50. Instant gratification and the ability to earn rewards immediately (rather than after a purchase) can increase basket sizes by 36%. (LoyaltyLion)
51. 75% of consumers want to be rewarded for engagement beyond purchase. (HelloWorld)
52. 81% of millennials favor loyalty programs that offer rewards for more than just purchases. (HelloWorld)
53. 86% of brand loyalty programs lack any rewards for completing a profile. (L2)
54. 50% of consumers change their behavior to reach a higher tier within a loyalty program. (Invesp)
55. Customers who join a loyalty program and redeem a reward are 68% more likely to purchase a second time than those who don’t join. (LoyaltyLion)
56. 56% of shoppers say they changed or abandoned a purchase when they realized their points had expired. (Code Broker)

Personalization is increasingly important

57. 74% of customers feel frustrated when website content is not personalized. (Instapage)
58. 80% of consumers are more likely to make a purchase from a brand that provides personalized experiences. (Epsilon)
59. 70% of customers say they would be loyal to a brand if they got personalized offers. (LoyaltyLion)
60. 66% of customers say they would be loyal to a brand if they were recognized as an individual. (LoyaltyLion)
61. 42% of consumers are annoyed when content isn’t personalized. (Adobe)
62. 44% of consumers want personalized rewards based on their purchase history. (Deloitte)

Marketing tactics need to be carefully considered

63. 87% of marketers use email marketing to share their content. (Content Marketing Institute)
64. 81% of SMBs still rely on email as their main customer acquisition channel. 80% rely on it for retention. (Emarsys)
65. 64% of customers think businesses should text them more often. (ZipWhip)
66. 77% of consumers say they’re likely to have a positive perception of a company offering SMS. (Harris Poll)
67. 86% of companies incorporated UGC in their marketing strategy. (Taggbox.com)
68. 92% of customers are looking for reviews and recommendations from existing customers. (Nielsen.com)
69. Loyalty program emails have a 20% higher click-through rate. (LoyaltyLion)
70. Nearly 80% of companies spend less than 30% of their time and budget on customer retention-focused messaging. (Accenture)

Ready to make loyalty marketing work for your brand?

Running a good loyalty program does require time and resource, but these stats show that it’s worth the investment.

Let LoyaltyLion do some of the heavy lifting, so you can enjoy the profits. When you’re ready to get started, book a demo.

About the author

Mollie Woolnough-Rai

Mollie is a Senior Content Marketing Executive at LoyaltyLion. After graduating from UCL in 2016, she has worked both in-house and at marketing agencies providing expertise in content for both B2B and B2C clients. At LoyaltyLion, Mollie manages our content, making sure our readers get the best quality resources about customer loyalty and retention.

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