A company’s success depends not only on its ability to attract new customers to the business, but also on its ability to retain its existing customer base. The following brand and customer loyalty stats show how important brand and customer loyalty are to any business. business marketing Strategies that include customer retention goals.Research while creating marketing planunderstand your target audience, listen to customer feedback, implement and explore customer rewards programs regain customer profits Strategy is all about driving customer loyalty to your business.
customer loyalty statistics
65% of a company’s business comes from existing customers
According to the Customer Service Institute, it is estimated that the majority of a company’s sales come from existing customers. And according to the Pareto Principle, 80% of the company’s future profits will come from 20% of her customers.
Customers spend 43% more money on loyal brands
Loyalty program members spend 12-18% more annually than non-loyalty program members. And her 80% of customers are willing to pay more for a better customer experience. Winning their loyalty literally pays for your business. Customers spend 43% more money on brands with loyalty.
Acquiring new customers costs 5 times more than retaining repeat customers
Another reason why investing in brand loyalty is smart for small businesses is that it costs significantly (5x) more to acquire new customers than to retain existing customers.
A 5% reduction in customer churn increases profitability by 75% or more
Churn rate refers to customers who stop doing business with your business. Data from Hoover’s, a subsidiary of Dun & Bradstreet, shows that winning back just 5% of those former customers could increase business profitability by at least 75%.
54% of customers would stop using a brand if negative reviews were left unattended
Customers want to feel validated when they have a negative experience. An effective way to increase customer retention is to respond quickly and professionally to reviews, both positive and negative. Another way: Her 54% of customers would stop doing business with a brand if a negative review was left unattended, even though they received additional communication from the company, such as product promotions.
88% of consumers shared a negative brand experience
Oracle research shows that 59% of these customers will share these negative experiences with friends and family. Why is this important?The same survey found that 77% of consumers trust family members more than other sources of shopping recommendations, and 75% trust friends.
71% of customers are less likely to buy from a company that has lost their trust
Data from PricewaterhouseCoopers Consumer Intelligence Series Trust Survey shows that 71% of consumers are unlikely to buy from a brand they have lost trust in. According to the study, key factors influencing consumer trust in brands include affordability of products and services, treatment of employees, quality and variety of products and services, and speed of resolving customer concerns. is mentioned.
68% of customer churn is due to business apathy
68% will stop doing business with a company if they feel the company doesn’t care about them. Separately, according to Oracle, 68% of consumers believe businesses should tailor their experiences based on their tastes and preferences.
92% of loyal customers ranked price and value as the top reasons for maintaining brand loyalty
A study by the International Council of Shopping Centers found that for 92% of consumers, brand loyalty is driven by price and value. The next most important factors were product and quality, variety and assortment.
69% of consumers say their retailer choice is influenced by where they can earn points for customer loyalty/rewards programs.
for your business reward program, consider this a sign of introduction. 69% of consumers say their retailer choices are influenced by where they can earn customer loyalty and rewards program points.
Other small business data from NerdWallet
A version of this article was originally published on Fundera, a subsidiary of NerdWallet.