11 Surprising Statistics About Customer Loyalty Programs

customer loyalty program statistics

Providing the best products at the right price is still the cornerstone of any retail business. But, with tight competition in the marketplace, retailers need to differentiate themselves by engaging more with their customers and offering the best customer experience.

Acquiring a new customer is 5 times more expensive than retaining an existing one. Plus, new customers spend less, so an increase in customer retention by just 5% can increase profits up to 75%. That’s why it’s so important for retailers to retain the customers they have, which requires consistent engagement through a wide range of programs.

Statistics on Engagement

One of the quickest ways to engage with customers is through a loyalty program. Consumers are 75% more likely to favor retailers with a loyalty program in place. Here are some additional customer loyalty program statistics that help you understand exactly what consumers expect from retailers in terms of positive customer engagement.

  1. Of the customers surveyed, 76% of them felt that receiving personalized discount offers based on their previous activity was important.
  1. Consumers are willing to provide their personal information for something in return. According to a large survey, 64% of the consumers are more willing to do this if they were rewarded with coupons or loyalty points and 60% of them would do it for exclusive deals and special offers.
  1. Personalization is becoming more important to consumers, especially when 64% of them want personalized offers from retail brands.
  1. 82% of consumers said that they would shop more at a store that provided exclusive offers.
  1. One survey found that 90% of consumers are okay with brands knowing more about them if it helps deliver a more rewarding and satisfying shopping experience.

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  1. Another survey found that repeat customers will spend 67% more than new customers.
  1. Loyalty is infectious, especially when 60% of customers will tell their friends and family about their favorite brands.
  1. Loyalty programs offer positive customer service experiences. Over half of the millennials in one survey said that positive customer service interactions with a brand are very important in contributing to their brand loyalty.
  1. 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with brands.
  1. In a large national poll of American consumers, over half will join a loyalty or VIP program.
  1. Why join a loyalty program? Because 86% of consumers want to collect points for rewards toward future purchases.

Rewarding Loyalty Is Important

The data collected through these surveys and polls shows that consumers want to be consistently engaged with their favorite brands. Having the right products at the right price, and great customer service is not enough. Customers are looking to be consistently rewarded for their loyalty. That’s why retailers need to improve customer experiences by engaging with customers after the sale, or else they will fall behind their competition.

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