Investing in customer loyalty is a must-have, and effective loyalty programs have proven to be key differentiators for their respective brands.
A new infographic from Fieldboom cites 20 compelling reasons why companies should double down on their customer loyalty efforts:
1. 86 percent of consumers say loyalty is primarily driven by likability and 83 percent of consumers say trust
2. 77 percent of people are considered brand loyal. Of these, 37 percent make repeat purchases and are loyal
to a company and 40 percent make repeat purchases, but are not necessarily “loyal”
3. People who use Facebook more than five times a day are 125 percent more likely to be Brand Loyalists than people who use Facebook at least once a month. The same is true for Instagram (1.26x)
4. Women are 22 percent more likely than men to always buy the product or services regardless of price, quality, convenience, or brand promise
5. Value for money is a more important loyalty driver for Baby Boomers (70 percent) and Gen X (70 percent) than it is for Millennials (65 percent) and Gen K (61 percent)
6. Millennials are more brand-loyal than any other age group
7. 7.77 percent of consumers like when brands demonstrate their appreciation
8. Customers who receive responses on Twitter from a business are 30 percent more likely to recommend the brand to others, and 44 percent more likely to share their experience online and off
9. 52 percent of consumers have switched providers in the past year due to poor customer service
10. 32 percent of consumers would turn on a brand if it doesn’t treat or pay its workers fairly
11. 25 percent of employers have seen an increase in customer loyalty after increasing employee educational requirements
12. Existing customers are 50 percent more likely to try new products, and spend 31 percent more than new customers
13. Companies lose 71 percent of consumers due to poor customer service
14. A 5 percent increase in customer retention can lead to an increase in profits of 25 percent to 95 percent
15. 47 percent of customers would take their business to a competitor within a day of experiencing poor customer service
16. Customers are willing to spend anywhere from 3 percent to 20 percent more on items from a business that engages with them through Twitter
17. The cost of bringing a new customer up to the same level of profitability as an old one is up to 1,600 percent higher
18. On average, loyal customers are worth up to 10x as much as their first purchase
19. 1 percent of a retail website’s users generate as much as 40 percent of its revenue
20. 41 percent of consumers say they purchase more from retailers that send them personalized emails based on past behavior