59 Brand Loyalty Statistics To Understand Customer Perceptions!

Customer loyalty is priceless. It is often said that a loyal customer does not consider alternatives. Post-pandemic there has been a huge change in the way eCommerce businesses exist. Modern approaches have made customer involvement more important for the sustainability of any brand. This also makes every business works towards creating brand loyalty within their target audience. This is exactly what we will focus on today and get more insight about the same with some fascinating brand loyalty statistics.

This research is done to understand how the effect of brand loyalty can impact a business and the difference it can make. You will further also understand its impact globally and with sector segmentation as well. Let us get started.

Brand Loyalty Statistics: Key Findings

Around 78% of consumers have stayed loyal to a particular brand for at least 10 years or more.
Profitably gets more than tripled when the customer churn rate is reduced by 5%.
Value and outlooks make customers relate to brands more and a change in them may result in more than 90% switching to other brands.
Apple saw one of the highest brand loyalty values of 92% in 2021.
Most industries face less than a 50% customer retention rate.
The commonly cited reason for switching brands is the change of needs and more alignment of present needs from other brands.
Brand satisfaction stories are shared with more than 7 people out of 10.
According to Accenture, more than 90% of brands have their own loyalty programs.
In America alone, there are more than 3.4 million membership programs.
Research made by Yotpo states that half of America’s population makes memberships with their favorite brands.
According to Bond, an average consumer is found in more than 15 loyalty programs. However, only 6 of them interest the consumer and are hence only active in them.
According to Code Broker, less than 19% of consumers take part in all loyalty programs registered with them. 60% and more engage with half of the brand loyalty engaged with them.
According to Yotpo, 50% of consumers are associated with 3 loyalty programs.
Wirecard states that only for 8.5% of customers, rewards have no role in their buying decision process.
The existing loyalty programs of various brands only satisfied 14% of respondents, whereas 7.18% of respondents claimed that they have not yet decided to renew their existing brand loyalty programs.

Importance of Brand Loyalty Statistics

Brand loyalty is developed over time. If a business is successfully able to understand the customers’ needs and the customers feel your products are valuable and provide them satisfaction, only then brand loyalty is formed. This customer behavior of buying from your brand more and more is helpful and sends a positive message to those around that customer.

There are statistics showing that attracting new customers is five times more expensive than retaining customers. Hence it is even more important that you retain your customers in order to gain market share. Here is a statistic that highlights what makes customers lose trust in a brand.

Changing Face of Brand Loyalty Statistics

There are said to be three segments of customers. One who does not necessarily purchase anything, one who purchases a single item, and others who purchase frequently and are loyal to the brand.

Research estimates that for 1% of shoppers to become purchasers the total revenue increases by 10%. 8% of purchasers generate more than 40% of total revenue.
Research states that 70% of customer churn can be easily prevented if the issues could get resolved that arose on their first buying encounter.
85% of unhappy customers often leave their shopping carts empty when they face issues with their shopping experience. Only 1 out of 25 respondents claimed that they would state the reason for leaving their shopping cart midway.
40% of successful eCommerce entrepreneurs believe that 20% of business loss happens due to poor customer service. Here are some interesting Ecommerce statistics to understand better.
With a proper emotional connection with the brand, the lifetime value increases up to four times higher.
Satisfied customers tend to spend at least 3 years with any brand whereas emotionally connected and satisfied ones stay a minimum of 5 years.
Emotionally connected customers recommend the brand to their friends and family for 30% more than others.
Compared to satisfied customers and emotionally connected ones have 306 times more Lifetime value(LTV).
Poor customer service greatly affects brand loyalty. 33% of customers complain about the poor service, 29% pass on this negative experience to at least 10 people and 46% of customers stop purchasing from their website permanently.

Global Brand Loyalty Statistics

Research shows that brand loyalty plays a much more important role than customer acquisition. Let us take a look at the insights:

According to Atfeld, companies have the potential to sell more to an already existing customer by 60%.
In the United States, 97% of respondents claimed that they are loyal to at least one of their brands. Those brands actively focused on giving their customers the best possible service with minimal interference. Thus customers return happily for their second, fifth, and even fiftieth purchases.
With an increment of 7% in brand loyalty value, the lifetime value of a buyer increases by 87%. When each and every customer is focused on a single brand, then profits generate faster and expenses lower to acquire new customers. Companies gain higher rewards in the long run with high brand loyalty value.
This statistical value helps in making decisions about the expansion process. It easily helps to calculate a brand’s forecast and future growth prospects through loyalty statistics. According to Harvard a 5% churn in the customer rate boosts profit by up to 95%.
According to Yotpo, it takes 5 purchase experiences to become a loyal customer. This view is supported by 40% of respondents as well that consecutive 5 purchases over a period of time help a brand to gain loyal customers.
A survey conducted by Econsultancy showed that 82% of entrepreneurs and business owners believe that retaining existing customers is a comparatively less expensive process. Here are some interesting entrepreneurship statistics to throw some light on it.
Annex Cloud has reported that two third of a brand’s revenue is generated from existing customers in Asia. Thus brand owners must never overlook the potential of loyal customers towards making a brand profitable.

Brand Loyalty Statistics For Different Industries

Loyalty is often the secret ingredient behind many brands’ success. Research has shown that there had been active loyalty programs in the 18th century too. Here are some statistics to showcase how brand loyalty is inclined in different industries.

According to Newswire, the loyalty management business is expected to turn $18 billion by 2028.
Apple has always maintained a very high brand value of 92% and more. The brand pays a lot of effort into maintaining its customer retention programs and satisfies customers to maintain such high brand loyalty values.
CallMiner stated that the US loses more than $33 billion every year due to customer churn. This is noticed in both B-B and B-C ventures. Brand loyalty often is the only gap to be fulfilled to turn losses into profits.
With a better customer experience, around 70% of customers in the United States believe that they can switch to a different brand also.
It is true that brands do struggle to keep customers and this value is true for almost 50% of all industries. The quality of products, the service provided, and also loyalty programs play an important role in this decision-making process.
Customer churn was the highest during the pandemic. Globally 75% of loyal customers have tried new brands. This helped competitors or new businesses to grab new customers. Here are some eye-opening startup statistics during the pandemic.
70% of respondents believe that reward programs help in maintaining brand loyalty and the efforts pay well to the respective brands.
According to Accenture, if brands fail to provide personalization, then the emotional connection with the customer drops. 60% of customers prefer businesses offering personalization.
Customers shop 90% more with their favorite brands. This helps the brand with higher cash flow, better profits, and less expense at marketing.

Brand Loyalty vs Customer Loyalty

Organizations must differentiate between these two terms to effectively run their operations and build strategies accordingly. Customer loyalty is all about using strategies that will make them choose your brand, these can be lower prices, discounts, rewards, etc. Whereas brand loyalty is how customers perceive your brand. Here are some interesting customer loyalty statistics to give you more insight into this term and how it impacts the business.

Impact of Customer Service on Brand Loyalty

It all starts with understanding the customer’s needs and wants. Providing what they seek and making their experience seamless with your brand is valuable.

Happy clients keep coming back. According to Hubspot, more than 90% of respondents claimed that they are eager to shop more when their experience is positive.
Newswire has reported that for 75% of customers, loyalty programs play a significant role. If other brands have a better program they might consider shifting too.
Values and outlooks are important for about 90% of customers. Customers are nowadays much aware of their environmental and political choices. They want to be a part of a worthy cause. They feel content when part of their shopping is used for the betterment of society.
Customers understand good quality products by their look, feel texture, value, and durability. 75% of customers don’t feel the need to change if the brand quality is the best in the market at that price.
The top 3 tools to understand brand loyalty statistics are email marketing followed by websites and social media.
When brands provide after-sales service, customers feel encouraged to share their feedback. 77% of customers reported that feedback helps them in conveying messages to the brand that they hope would improve with time.
Brands supporting social causes and responsibilities have outperformed the stock market by more than 130%. Customers have reported that their shopping experience gets meaning when brands are well connected to certain social causes.
In independent research, respondents claimed that 65% of them do not believe in press releases, 15% in ads, and 71% in sponsored social media ads. More than 80% of people cited that recommendations from friends and family play a significant role in the decision-making process.

Brand Loyalty Statistics During The Pandemic

Every sector of the economy was deeply affected by the pandemic. It took time for businesses to adapt as the definition of brand loyalty had changed.

What has helped many business owners during the pandemic was having a good loyalty program. 62% of entrepreneurs believe in this stat as they got good customer engagement.
In just two years from 2020-2022, the retail e-commerce sector has seen a growth of $2 billion.
70% of customers reported that they would not go back to brands with poor customer experience faced during the pandemic.
More than 40% of customers were ready to pay extra towards their favorite brand to get their product on the same day.
According to Bayard Institute, 70% of customers are ready to abandon a brand if their shopping experience is not smooth.
60% and more customers would switch to other brands if their favorite products are out of stock for more than three days.
Bad customer experience impacts a brand to a large extent. Customers share negative experiences with more than 18 persons on average.
70% of consumers recommend brands with good loyalty programs to their friends and families.

Techniques To Increase Brand Loyalty

Being loyal to a brand is indeed a beautiful thing. It is a very unique relationship between any brand and its customer. Without proper care often this beautiful relationship comes to an end. In absence of any relationship, many brands have failed. Business failure statistics will help you better understand the insights and importance of brand loyalty. The loyalty statistics of most brands are seen to rise after the pandemic and various brands have opted for different ways to do so. So let us look at how one can increase brand loyalty.

1. Know Your Customers Well

Increasing your customer base is not only about new people pouring in but about fully understanding the customer. A brand needs to know which customers are the ideal ones and understand their potential. The customer’s motivation, interest, work, lifestyle education, and income all play an important role in forming brand loyalty.

2. Create a Customer Loyalty Program

Brands nowadays are paying the extra effort to know the special events of customers as well. These profiles help in better emotional connections with the brand and in return increase brand loyalty. Loyalty programs with incentives help 18% of consumers stay loyal to one brand.

3. Provide Exceptional Customer Experience

It is equally important to remember that even your competitors are doing the same thing. Thus one should be able to meet the market demands on time and be fast in resolving any issues if they arise. And provide an exceptional customer experience. 75% of consumers believe that if their first shopping experience is poor they may not come back for another purchase.

4. Engage With Customers On Social Media

Creating an active social media account on different platforms helps you connect with your consumers easily. This in fact is most influential for small businesses that have very limited budgets to spend on ads and marketing. Here are some small business statistics to back this up. Your customers will be better informed about the brand’s vision, the latest activities, ad programs, and even new launches. This in term can engage customers and increase brand loyalty. 62% of Gen Z are highly active on social media and love engaging with their favorite brands.

5. Set Up A Referral Program

It is an effective and affordable strategy that helps you build customer loyalty and also get new customers. Both your existing and new customers benefit from it. 32% of consumers believe that setting up a referral program makes it easy for them to share the brand with friends and family.

Takeaways

Brand loyalty has always played an important part in the success or failure of a brand. The overview of brand loyalty statistics thus proves how important customer retention is in every industry. When old customers keep coming back, new customers are automatically generated through word of mouth. We hope this overview will help you understand what new strategies can help you increase your brand loyalty.

References

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59 Brand Loyalty Statistics For A Valuable Insight To Understand Customer Perception