Retaining a customer costs 5 to 10 times less than acquiring new customers. Plus, loyal consumers spend 67% more on average than those new to your business.
Good experiences and rewards help the brand to retain its consumers and increase its loyal consumer base. These loyal consumers advertise your brands through word of mouth, online posting, referrals, positive reviews, and more.
This post will provide insights into the latest customer loyalty statistics and uncover why consumers are loyal to brands, the benefits of loyalty programs, and more.
Top Customer Loyalty Statistics for 2024
- 72% of consumers are loyal to at least one company.
- 88% believe it takes three or more purchases to build brand loyalty.
- 64% of loyalty program members spend more to earn points.
- 84% are more likely to shop with brands that have loyalty programs.
- Loyalty programs can increase revenue by 12% to 18%.
- 70% consider loyalty programs a key factor in showing their loyalty.
- The customer loyalty management market is over $5.5 billion and is expected to exceed $24 billion by 2029.
General Consumer Loyalty Statistics
Consumers worldwide require different numbers of purchases to become loyal to a brand. At the same time, factors like loyalty programs, consumer service, etc., affect brands’ relationships with consumers.
This section highlights the loyalty relationship between consumers and a brand and the process involved in it.
88% Of Consumers Say It Takes Three Or More Purchases To Build Brand Loyalty
New consumers require a minimum of three or more purchases to become loyal to a brand.
Meanwhile, 37% of the consumers said that they require five or more purchases to become loyal to a brand.
Today, the bar for loyalty has become quite high, as 67.3% of shoppers expect 24/7 customer service, and 71% of the consumers want more frequent discounts.
Here is a table displaying the number of purchases consumers require to become loyal to a brand.
| Number of Purchases a Consumer Requires To Become Loyal To a Brand | Percentage Of Consumers |
|---|---|
| More than 5 | 37% |
| 3 purchases | 33% |
| Four Purchases | 17.65% |
| Two purchases | 12.35% |
Source: Yotpo.
72% Of Product Users Are Loyal To At Least One Brand Or Company
With a variety of brands to choose from, 7 in 10 consumers prefer to purchase from a particular brand only.
80% of American consumers are loyal to a brand, while just 60% of the consumers in Japan said that they are loyal to one brand.
Industries like fashion, jewelry, and eCigs have consumers who are mostly loyal to a brand.
Source: Tech Report.
Over 55% Of The Consumers Are Loyal To The Brand Due To The Product Quality
Good quality products motivate the consumers to repurchase from a brand.
Meanwhile, poor product quality is the top reason why a brand loses loyal customers.
Apart from product quality, great deals and customer service are the top reasons that encourage consumers to stay loyal to a brand.
Here is a table displaying why consumers stay loyal to a brand.
| Reason For Being Loyal To The Brand | Percentage of Consumers |
|---|---|
| Products | 55.3% |
| Great deals | 25.7% |
| Customer service | 7.1% |
| Convenience | 5.7% |
| Others | 3.2% |
| Causes or charity | 1.8% |
| It’s popular | 1.2% |
Source: Yotpo.
75% Of Customers Will Choose Companies With A Purchase Reward System
Customers said they are likely to make another purchase after receiving an incentive, such as reward points.
Besides, 28% of the consumers said that brands giving out prices helps them decide where to purchase, as loyalty rewards are about appreciating customers’ continuous patronage.
Source: Tech Report
49% Of Consumers Agree They Spend More After Joining A Loyalty Program
Almost half of the consumers spend more after joining a loyalty program, believing the more they spend, the more they save.
Loyalty programs are structured in a way that they motivate consumers to spend more. As a result, a customer ends up spending more in order to gather more points and gifts.
Source: Keap.
77% Of Consumers Say They’ve Remained Loyal To A Specific Brand For 10 Years Or More
Nearly 8 in 10 consumers reported being loyal to a brand for over a decade.
Brand loyalty is based on perceptions like images and experience. Consumers remain loyal to a brand with good consumer services and higher quality products than any other brand.
Source: Queue-IT
55% Of US And UK Consumers Say Their Brand Loyalty Is Declining
This shift in consumer attitudes makes it difficult for brands to maintain long-term relationships with consumers.
According to a survey, brand loyalty in the United States dropped from 76% to 49%. One of the primary reasons for the decline in these figures is that most brands focus on just the shopping experience and forget about the consumers’ post-purchase experience.
Source: Hubspot.
Loyalty Program Statistics In 2024
Loyalty programs play a major role in retaining existing consumers. Additionally, it also helps increase the brand’s revenue by encouraging consumers to purchase more in exchange for rewards.
65% Of The Consumers Prefer To Sign Up For A Brand Loyalty Program
Over 6 in 10 consumers prefer to enroll in a brand loyalty program to display their loyalty towards the brand.
Meanwhile, 59% of the consumers reported that they would prefer to wait to purchase their favorite products from the brand until they are back in stock.
Other ways that consumers prefer to display their loyalty towards the brand are as follows:
- Sign up for a loyalty program: 65.3%
- Wait to purchase until my favorite brand’s products are back in stock: 59%
- Sign up for emails:58.5%
- Recommend it to others: 54.5%
- Pay more for the products despite cheaper competitors: 39.2%
- Sign up for texts: 23.1%
Source: Yotpo.
74% Of Customers Subscribe To Free Loyalty Programs
Free consumer loyalty programs are the most popular among customers. A free loyalty program allows consumers to create a risk-free connection with their brands.
Other major reasons consumers subscribe to the loyalty programs are as follows:
- It was free: 74%
- Gas/fuel discount: 56%
- Ability to accrue points to spend: 55%
- Cash reward: 39%
- Personalized or special offers: 38%
- Membership benefits made it worth the annual fee: 38%
- Free beverage/food items: 35%
- Access to special members-only events: 25%
- Access to new products: 13%
- Option for mobile checkout: 1
Source: Statista.
83% Of Consumers Say Belonging To A Loyalty Program Influences Their Decision To Buy Again From A Brand
Over 8 in 10 consumers said they would prefer to purchase again from a brand if they enrolled in a loyalty program. Overall, they would end up purchasing more than they need to.
Hence, 84% of consumers are more likely to continue shopping with brands that offer a loyalty program.
Further, the top-performing loyalty program helps in boosting revenue by 15% to 25% annually.
Source: Zinrelo.
77% Of Loyalty Programs Fail Within Their First Two Years
This is due to the loss of engagement after the initial acquisition. Most loyalty programs just focus on the transactions consumers make instead of focusing on developing relationships. Almost all brands invest 100% of their incentives to take place after a consumer makes a transaction.
Hence, one-third of the consumers leave the loyalty programs as the brands are not able to fulfill their needs. Overall, more than three-fourths of the loyalty programs fail within two years due to negligence.
Source: The drum.
79% Of Consumers Have Some Form Of Relationship With The Brands
These relationships include retail subscriptions, memberships, and loyalty programs. Meanwhile, 17% of the consumers have all these three types of relationships with the brand.
Source: Queue it.
Effectiveness Of Loyalty Programs
Loyalty programs increase the order quantity. As a result, members of loyalty programs generate 12% to 18% more revenue growth per year than non-members.
Plus, over 8 in 10 consumers stated that their purchase decisions were influenced after enrolling in loyalty programs.
The Top 1% Of Loyal Consumers Spend 5 Times More On Every Purchase
Meanwhile, the top 10% of loyal consumers spend three times more per purchase.
Consumers who are loyal to a brand are not distracted by the price or availability. They prefer to pay more for the same quality service and the product they prefer.
Source: BigCommerce.
Adding A Loyalty Program To An E-Commerce Platform Can Increase Average Order Quantity By 319%
Loyalty programs help consumers save money by offering discounts, free shipping, redeemable points, VIP perks, and more.
A 7% increase in customer loyalty can lead to an 85% increase in customer expenditure over their lifetime.
Other results of integrating loyalty to an e-commerce platform are as follows:
- The participation of contractors increases by 77%.
- Increase in monthly revenue by 665% due to the participation of consumers.
How Do Consumer Experiences Affect Brand Loyalty?
Consumer experience is a significant factor influencing consumer loyalty. Negative customer experiences disappoint the customers, and they may switch to your competitor.
46% Of Consumers Will Abandon A Brand If Employees Are Not Knowledgeable About The Product Or Service
That is usually due to a mismatch between the customers’ expectations and how the employees deliver. Almost half of the consumers said they would abandon a brand if the employees did not have proper knowledge about the products.
Besides, only 38% of US consumers say that the employees understand their needs, while 46% of worldwide consumers agree with it.
Source: PWC.
Consumers Are More Likely To Stick With The Brands That Focus On Quick Customer Service
Consumers prefer brands that help them solve their issues quickly. Hence, positive experiences throughout the journey encourage 65% of the consumers to become long-term customers of a brand.
Source: Prime.
76% Of The Consumers Are Likely To Switch After Two Negative Experiences With The Brand
Meanwhile, 61% of the consumers said they would switch to the competitor just after one bad experience with the brand.
However, 74% of them said that they would forgive a brand for their mistake in exchange of excellent consumer services.
Source: User Voice.
Loyalty Management Statistics
This section provides insights into the loyalty management market and the investments businesses look forward to making.
The Global Loyalty Management Market Is Projected To Reach $24.44 Billion By 2029
The market was valued at $5.57 billion in 2022 and is growing at a CAGR of 23.5%. Hence, by the end of 2029, the market will reach nearly $25 billion.
The following table displays the market size of the global loyalty management recorded over the years.
| Year | Loyalty Management Mark |
|---|---|
| 2029* | 24.44 billion |
| 2022 | 5.57 billion |
| 2021 | 4.54 billion |
| 2020 | 3.65 billion |
Source: Statista.
69% Of Brand Executives Say They’ve Increased Loyalty Investment Over The Past Two Years
Consumer loyalty can be a great way to boost revenue when worked on. It is an effective way to nurture consumers and convert them into the most profitable leads.
Hence, 7 in 10 executives have increased loyalty investments in the past two years. 55% reported looking forward to increasing their loyalty investments further in the next two years.
Source: Business Wire, Talone One.
Consumer Loyalty Demographics
Gen Xers stay loyal to a brand for a longer duration compared to Millennials and Gen Zs. Unlike Gen Zs, they prefer not to switch brands at minor inconveniences.
Customers Aged 55 To 64 Are Most Likely To Join A Rewards Program In The United States
71% of the consumers in the United States were a part of at least one loyalty program. Meanwhile, just 43% of the consumers aged 18 to 24 had subscribed to a loyalty program.
The following table displays the percentage of consumers in different age groups enrolled in at least one loyalty program.
| Age Group | Percentage Of Consumers |
|---|---|
| 18 to 24 years | 43% |
| 25 to 34 years | 57% |
| 35 to 44 years | 66% |
| 45 to 54 years | 69% |
| 55 to 64 years | 71% |
| Over 65 years | 65% |
Source: Insider Intelligence.
57% Of Gen Z Americans Feel Less Loyal To Brands After The Covid-19 Pandemic
Post-pandemic, online experiences have become an important factor in consumer service. After experiencing a poor online shopping experience, over one-third of GenZ leave without purchasing or posting negative reviews online about the brand.
Today, 80% of GenZ are more willing to try a new brand online.
Source: PR Newswire.
Conclusion: Loyalty Programs Can Boost Revenue By 12% To 18%
With 72% of consumers loyal to at least one brand and 88% believing that three or more purchases are necessary to build loyalty, businesses must focus on fostering long-term relationships.
Loyalty programs play a significant role, with 84% of consumers more likely to shop with brands that offer them. Investing in these programs can significantly boost revenue and enhance customer engagement.
