Loyalty marketing is a strategy that focuses on retaining existing customers and encouraging them to continue buying from a company by offering incentives and rewards. This approach has become increasingly popular in recent years, as businesses look for ways to stand out in crowded markets and build lasting relationships with their customers. In this article, we will explore the performance of loyalty marketing and highlight 20 key statistics that demonstrate its effectiveness.
Loyalty Marketing Stats: Performance & ROI
Members of loyalty programs generate between 12% and 18% more revenue than non-members. (Accenture)
Companies with a loyalty program have 12-18% higher market share than their competitors. (Colloquy)
A 5% increase in customer retention can increase profits by up to 95%. (Bain & Company)
Companies that increase customer retention rates by as little as 5% can see an increase in profits of 25% to 95%. (Bain & Company)
57% of consumers spend more on brands to which they are loyal. (Edelman)
56% of consumers say that loyalty programs are part of their consideration when making a purchase. (Yotpo)
46% of loyalty program members are willing to pay more for products or services from brands with a good loyalty program. (Bond)
Companies with successful loyalty programs can expect up to a 20% increase in revenue. (Annex Cloud)
62% of consumers say that they will purchase more frequently from brands with loyalty programs. (Yotpo)
Loyalty Marketing Stats: Markets & Trends
80% of customers are more likely to do business with a company that offers personalized experiences. (Epsilon)
77% of consumers participate in loyalty programs. (Bond)
71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationship with brands. (Bond)
73% of loyalty program members are more likely to recommend brands with good loyalty programs. (Bond)
70% of consumers say that they modify when and where they buy in order to maximize loyalty program benefits. (Bond)
64% of loyalty program members would recommend a brand that has a good rewards program. (Bond)
82% of consumers say they are more likely to shop with brands that offer loyalty programs. (Nielsen)
87% of shoppers say they want brands to have loyalty programs. (Bond)
The average U.S. household participates in 29 loyalty programs, but is active in only 12. (Colloquy)
66% of consumers have changed their spending behavior to maximize rewards. (Yotpo)
60% of consumers say they will buy from a retailer with whom they are not familiar if the retailer has a strong loyalty program. (Yotpo)
Loyalty Statistics: Summary
Loyalty marketing is a powerful strategy that can help businesses increase revenue, build customer loyalty, and stand out in crowded markets. The statistics we've presented here demonstrate the value of loyalty programs for both customers and businesses. With personalized experiences, meaningful incentives, and strong branding, businesses can create a loyal customer base that drives revenue and growth.
For more Loyalty Marketing benchmarks, statistics and insights please visit our dedicated Loyalty & Referral Benchmarks section.
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