{"id":47,"date":"2023-04-15T09:39:29","date_gmt":"2023-04-15T09:39:29","guid":{"rendered":"https:\/\/www.smallbizgenius.net\/?p=47"},"modified":"2023-05-11T09:45:52","modified_gmt":"2023-05-11T09:45:52","slug":"brand-loyalty-statistics","status":"publish","type":"post","link":"https:\/\/www.smallbizgenius.net\/by-the-numbers\/brand-loyalty-statistics\/","title":{"rendered":"30 Essential Customer Retention and Brand Loyalty Statistics"},"content":{"rendered":"\n
Customer retention and brand loyalty are the healthy diet and exercise of retailing. We all know the benefits. We know we\u2019ll be sorry someday if we don\u2019t make an effort. But in the rush to promote products and break into new markets it\u2019s easy to put existing customers on the back burner. We\u2019ve already got their<\/em> business. What we need is growth, and that means new customers.<\/p>\n\n\n\n Sound familiar?<\/p>\n\n\n\n The statistics we\u2019ve gathered here illustrate the promise and peril of dealing with existing customers. We explore the cost of acquiring customers versus keeping them. The disproportionate contributions of your top customers. The dollars and cents of brand loyalty.<\/p>\n\n\n\n No doubt you will find some of this terra cognita. You\u2019ll probably find some eye-opening new information too. We hope this data inspires and empowers you to set up loyalty programs and define customer retention strategies.<\/p>\n\n\n\n Brand loyalty statistics from the United States, Germany, Brazil, Japan, the U.K., and other countries contribute to a complete, global view of customer dynamics. We\u2019ve collected 30 fascinating customer retention facts plus short comments, tips, and tricks you can use to encourage the people who shop in your store to keep coming back. Customer lifetime value will keep your business a success for years to come. <\/p>\n\n\n\n (Invesp)<\/p>\n\n\n\n The first rule of any business should be to retain customers and build a loyal customer base. Efforts to increase customer retention should take priority over customer acquisition for almost all businesses at almost at all times, experts say. Without a dependable base of repeat customers, organic growth and longevity are impossible – regardless of how many new customers you bring in the door.<\/p>\n\n\n\n (Invesp)<\/p>\n\n\n\n Invesp reports that only 42% of companies say they can measure the lifetime value of a customer accurately. But the value is surely there: Experts say the likelihood of selling a product or service to an existing customer is 60% to 70%, while only 5% to 20% of new prospects are likely to buy. The marketing plan for any type of product or service starts with a budget, and experts say money spent on customer-acquisition – without customer retention strategies in place – is often money wasted.<\/p>\n\n\n\n (Think Jar)<\/p>\n\n\n\n The best way to boost customer retention? Don\u2019t give shoppers a reason to walk away and look back in anger. Dissatisfied customers will abandon your brand without giving you a chance to improve. And that\u2019s not even the worst part – they are highly likely to badmouth you behind your back. Here\u2019s another reason a retained customer is worth your while: With every unsatisfied customer, you\u2019re likely to lose 15 or more future prospects. Those are some serious long-term consequences.<\/p>\n\n\n\n (Havas Group)<\/p>\n\n\n\n Here\u2019s disheartening news for startups and small businesses worldwide: Customers most likely wouldn\u2019t care if you disappeared off the face of the earth. This is a three-point rise compared to 2017 results, the highest annual rise since Havas began researching this topic in 2008.<\/p>\n\n\n\n More and more startups are popping up every year, all competing for the same pool of prospects, and that\u2019s bad news for brand loyalty. It\u2019s increasingly difficult to step into the spotlight, let alone stay there.<\/p>\n\n\n\n (Havas Group)<\/p>\n\n\n\n To come up with this list, researchers behind Havas Group\u2019s annual Meaningful Brands study surveyed more than 350,000 consumers, compiling data on 1,800 brands, 31 markets, and 22 industries. Conducted annually since 2008, the study explores the ways in which brands \u201ctangibly improve people\u2019s lives and the role they play in society.\u201d<\/p>\n\n\n\n Brand loyalty statistics depend largely on brands\u2019 being recognized for their seemingly irreplaceable role in people\u2019s lives. In addition to identifying top performers, the report also lists brands people view with relative indifference.<\/p>\n\n\n\n (Havas Group)<\/p>\n\n\n\n The modern corporation has an increasingly stronger grip on customers\u2019 thoughts and feelings, but this is a double-edged sword. As many as 77% of customers say they would rather buy from companies who \u201cshare their values.\u201d In other words, to earn their business it is no longer sufficient to offer good products and services at a fair price. Brand activism, image-building, and even the charities they contribute to can affect the customer\u2019s decision to stay loyal. Customer retention techniques must be updated to reflect these new realities.<\/p>\n\n\n\n The 2019 Meaningful Brands survey found that the younger the consumer, the more value alignment customers expect: 76% of Gen Xers, 84% of millennials and 87% of Gen Z.<\/p>\n\n\n\n (Havas Group)<\/p>\n\n\n\n More benefits of customer retention: Brands that align with customer values lock in greater returns on KPIs, including 24 points more for purchase intent and 39 points for advocacy.<\/p>\n\n\n\n (Forbes)<\/p>\n\n\n\n To increase client retention, you need to make sure the customer\u2019s experience with your brand is impeccable. Honest, helpful interactions with employees make your consumers feel validated, heard, and important. And the opposite is true: If a one-on-one conversations with customers go purely, the consequences can be devastating. Quitting your brand forever is only the beginning – see statistic #3 for how bad experiences multiply in your prospect base.<\/p>\n\n\n\n (Klarna)<\/p>\n\n\n\n In early 2019, Klarna commissioned more than 2,000 interviews with UK shoppers to take a fresh look at how they feel about returns. The results demonstrate that full-spectrum customer retention must include services such as money-back guarantees and free returns. Klarna statistics suggest that a free-return policy must be at the very heart of your customer service program as well as your customer-retention program.<\/p>\n\n\n\n (Monetate)<\/p>\n\n\n\n To reduce customer turnover, you\u2019d better make shoppers feel special. Modern companies use customized landing pages, history-based product recommendations, other techniques to deliver a unique shopping experience to each customer. Personalized marketing means delivering individualized content through data analysis and automated tools – fundamental parts of customer retention technology.<\/p>\n\n\n\n If you want to get a return on your personalization investment, you should make customer lifetime value your primary business goal. A Monetate study shows that the companies making a threefold ROI on such projects were twice as likely to name customer lifetime value as their top business objective than companies with a lower ROI.<\/p>\n\n\n\n (Klarna)<\/p>\n\n\n\n Trust is a key issue in eCommerce. Sure, the dress is pretty, but will it look good on me? How do I know the headphones will be delivered on time, even delivered at all? A free-returns policy is like a safety net that lets new customers know that they can count on you. Researchers say a free-returns policy is essential in establishing a long-term relationship with customers. Retailers who don\u2019t offer an easy returns process lose sales and forfeit customer loyalty.<\/p>\n\n\n\n (Merkle)<\/p>\n\n\n\nTop Brand Loyalty Statistics, Editor\u2019s Choice<\/h2>\n\n\n\n
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Acquiring a new customer costs as much as five times more than retaining an existing customer.<\/strong><\/h4>\n\n\n\n
44% of companies admit they have \u201ca greater focus\u201d on customer acquisition, while 18% concentrate on retention. The rest say they focus on both equally.<\/strong><\/h4>\n\n\n\n
13% of unsatisfied customers will tell 15 or more people about their lousy customer experience.<\/strong><\/h4>\n\n\n\n
77% of brands could disappear and no one would care.<\/strong><\/h4>\n\n\n\n
Google, PayPal, Mercedes-Benz, and WhatsApp were among the top 10 Havas Group \u201cmeaningful brands\u201d for 2019.<\/strong><\/h4>\n\n\n\n
Customer Retention Marketing in Today\u2019s Economy<\/h3>\n\n\n\n
55% of consumers believe companies have a more important role than governments in creating a better future.<\/strong><\/h4>\n\n\n\n
Meaningful brands outperform the stock market by 134%.<\/strong><\/h4>\n\n\n\n
67% of consumers said good customer experience encourages them to stay longer or spend more money.<\/strong><\/h4>\n\n\n\n
84% won\u2019t come back to a retailer if they\u2019ve had a poor experience returning a product.<\/strong><\/h4>\n\n\n\n
Of companies that surpassed their revenue goals in 2018, 77% had a documented personalization strategy, while 74% had a budget for executing the strategy.<\/strong><\/h4>\n\n\n\n
What Are Customer Retention Strategies?<\/h3>\n\n\n\n
78% of shoppers will buy more in the long run if a retailer has free returns.<\/strong><\/h4>\n\n\n\n
Surprise offers or gifts are the best ways to engage 61% of customers.<\/strong><\/h4>\n\n\n\n