Essential Brand Loyalty Statistics for 2024

What’s the most important thing in your business? That’s right, the customer.

Clients decide whether a company sinks or swims in the sea of modern business. The latest data shows that establishing a solid following of repeat customers is more important than ever.

Given that global eCommerce sales are set to top $5 trillion, there has never been a better time for organizations to focus on keeping customers.

Still unsure? The following retention facts should remove any doubt.

Key Brand Loyalty Statistics for 2024 - Editor’s Choice

• Reducing your customer churn rate by just 5% can boost profitability by 25% to 95%.
• 77% of consumers have been loyal to at least one brand for 10 years or longer.
• Nearly 90% of consumers would switch to brands that share their values and outlooks on life.
• In 2021, Apple’s brand loyalty reached an all-time high of 92%.
• The average customer retention rate for most industries is below 50%.
• 50% of customers have left a brand because a competitor was better aligned with their needs.
• Happy Millennials share their positive experiences with 17 people on average.

The thought of growing your customer base with new clients is exciting, not least because it raises the ceiling for your potential revenue. However, customer retention numbers point to the fact that loyalty should be the priority. Here’s why:

Companies have a 60-70% chance of selling to an existing customer.

(Altfeld Inc)

Compared to the fact that selling to new customers offers rates as low as 5%, the value of loyal customers is clear. Sales will come more easily, meaning increased sales revenue and increased profits for the business.

A massive 97% of Americans state that they are loyal to at least one of their favorite brands.

(Savings.com)

Practically all consumers show brand loyalty, highlighting the advantages of companies that actively focus on giving clients a reason to return for a second, third, or 54th purchase.

When a company achieves a 7% increase in brand loyalty, the customer lifetime value of each client can rise by 85%.

(Microsoft)

Increased brand loyalty delivers long-term rewards. If each client spends more money with the company, the pressure to acquire new clients is smaller.

Reducing your customer churn rate by just 5% can boost profitability by 25% to 95%.

(Harvard Business Review)

When brands lower the attrition rate - the number of customers who stop doing business with them - their profits will soar. This is further supported by evidence that firms find it a lot easier to forecast growth. It leads to calculated expansion decisions.

It takes 5 purchases for a consumer to be considered a loyal client.

(Yotpo)

Or at least that’s the view held by 37% of consumers; a further 33% estimate it takes only three purchases.

82% of business leaders state that customer retention is more cost-effective than new acquisitions.

(Econsultancy)

The opinions of business leaders are also backed up by evidence that shows marketing costs for new acquisitions are rising. Customer retention is less expensive, as it uses existing data and free marketing channels, like email.

Up to 65% of a company’s overall revenue comes from existing loyal customers.

(AnnexCloud)

With almost two-thirds of company revenue stemming from existing clients, overlooking the need to implement loyalty-based branding and marketing schemes is one of the biggest mistakes a business owner can make.

Loyalty to Brands

Brand loyalty is nothing new. In fact, research shows that loyalty programs can be dated back to the 18th century, as merchants have always tried to encourage repeat visits from clients. Loyalty is a crucial ingredient in the recipe for sustained business success. The following statistics show just how true that is:

The loyalty management market size is set to reach $17.65 billion by 2028.

(PR Newswire)

The CAGR (compound annual growth rate) rate of 12.3% for this industry reflects the growing appreciation business leaders have for it. After all, clients like shopping in one place, but won’t resist trying alternative brands if a company fails to satisfy their demands.

In 2021, Apple’s brand loyalty reached an all-time high of 92%.

(SellCell)

This represents an increase from the 90.5% shown two years earlier. The tech giant retains a greater percentage of its clients than any other organization, underlining the value of its branding efforts.

Businesses in the US lose $33.5 billion yearly due to churn.

(CallMiner)

Organizations will often find that strong retention rates can make all the difference between success and failure in business.

Two-thirds of consumers are open to switching brands if a competitor offers a better experience.

(Forbes)

While consumers are loyal to their favorite brands, their overall loyalty has declined. They can be swayed by the quality of the product or service itself, but also its convenience, cost, and customer care. Brands with programs designed to win over customers have an edge here.

The average customer retention rate for more than half of all industries is below 50%.

(SurveySparrow)

Companies struggle to retain customers, and it costs them dearly. There is significant room for improvement for most companies, which can transform a firm’s overall performance.

Over 7 in 10 consumers belong to at least one loyalty reward program.

(HighNote)

A whopping 72% of US consumers are signed up to at least one active reward scheme. It is clear evidence that reward schemes work and verifies that loyalty-building efforts will benefit most companies.

77% of consumers have kept using at least one brand for 10 years or longer.

(InMoment)

It might take some time and effort to turn a lead or one-time customer into a loyal client, but they will keep returning again and again. By establishing a strong connection, brands can anticipate years of sales.

A third of consumers will abandon a brand that fails to create a sense of personalization.

(Accenture)

It highlights the fact that emotional connections with the brand play an important role. Likewise, it’s not always about finding the biggest brand; rather, we prefer those that offer value and feel aligned to our individual needs, regardless of age.

Loyal customers make purchases 90% more frequently.

(Squarespace)

The fact that loyal consumers spend more frequently with favored brands helps businesses achieve far better cash flow. It is also supported by a faster path to conversion, thus resulting in lower marketing expenses.

Customer Loyalty

Appreciating how valuable loyalty can be to a brand is one thing, but knowing how to secure it is another. Understanding everything from loyalty programs, to the influence customer service can have, should have a significant impact on branding and customer-facing decisions.

Up to 93% of consumers would return to a company if their previous experience was positive.

(HubSpot)

Keep clients happy, and they will have no reason to look at alternative brands. While they could still be won over by a competitor’s aggressive marketing campaigns, their lack of actively pursuing new companies will be significant for your revenue.

3 in 4 customers would switch brands to get a better loyalty program.

(PR Newswire)

Most companies offer special deals to entice new customers, and it can leave existing clients feeling undervalued. However, an underwhelming repeat customer scheme is no good either: It has to create a sense of exclusivity, especially with ideas like money-can’t-buy rewards.

Nearly 90% of consumers would switch to brands that share their values and outlooks on life.

(LoyaltyLion)

Now more than ever, people are conscious of their political and environmental decisions. Naturally, they want to align with brands that indirectly allow them to support worthy causes or do the right thing. Corporate responsibility has therefore become a vital marketing strategy.

Product quality is the chief reason 74% of loyal consumers resist switching brands.

(KPMG)

Quality products can be defined by their features, appearances, durability, and value for money. As consumers won’t risk trying something new when they are already happy with what they have, maintaining consistent (high) quality is essential.

37% of companies cite email marketing as the best tool for loyalty and retention.

(Dotdigital)

This figure easily beats both websites (13%) and social media (11%). Privacy regulations mean that email inboxes now receive far fewer cold emails and spam means responses are now better than ever - especially for personalized messages.

Accepting and implementing customer feedback boosts loyalty in 77% of customers.

(Microsoft)

People can forgive mistakes, but they won’t overlook poor customer support. Brands that encourage feedback and act upon it show clients that they care. Moreover, it ensures that the company addresses the issues that matter most to its users.

Meaningful brands and responsible organizations outperform the stock market by 134%.

(HAVAS)

In addition to aligning with customer outlooks, brands that support meaningful causes offer clients another source of positivity and pride. When they make the mental association between a brand and feeling better about themselves, their loyalty is sure to improve.

50% of loyal customers have left a brand because a competitor was better aligned with their needs.

(InMoment)

Consumers need to feel that brands “get them,” and will quickly leave if they feel overlooked. Therefore, customer feedback, market research, and other consumer-oriented tools are necessary to understand what the majority of a brand’s customers require.

55% of consumers do not trust brands as much as in previous years.

(HubSpot)

Furthermore, people don’t trust press releases (65%) and ads (69%), particularly those sponsored on social media (71%). Over 80% trust the recommendation of friends and family more than marketing channels, although authenticity and consistency in their campaigns can help brands build trust.

Almost 1 in 4 consumers state that a sense of community encourages them to stay loyal to a brand.

(Clarus Commerce)

Fostering a community vibe can be achieved through loyalty schemes, corporate responsibility, and actively engaging clients through personalized interactions. When a brand successfully transforms its story into “our story,” clients tend to stay latched on.

48% of consumers want brands to begin winning their loyalty from the first purchase.

(SiliconANGLE)

Building customer relationships starts from the first interaction. The value of first impressions won’t only enhance conversions for the initial sale - it will also set the foundation for long-term relations.

Customers engaged in loyalty programs spend 12% to 18% more than non-members each year.

(Accenture)

Customers can be loyal to a company without necessarily being a part of any membership scheme. However, running a loyalty program and encouraging people to join it can significantly increase revenue.

Happy Millennial customers share their positive experiences with 17 people on average.

(Business Wire)

Given the power of recommendation and the impact of customer experiences on a client’s retention rates, it shows how building brand loyalty can become a powerful tool in acquiring new audience members too, especially among the young adult and adult demographic.

Unhappy customers will tell up to 15 people about their poor experience.

(Business Wire)

Bad customer experiences won’t only sever ties with the client who has been directly impacted. It can additionally result in lost revenue from potential new acquisitions and, worse still, lead other existing clients to end their affiliation with your brand.

70% of consumers consider themselves more likely to recommend a brand with strong loyalty programs.

(HubSpot)

Loyalty schemes can also bring an uptick in referrals and recommendations.

Customers are willing to pay an average of 16% more when they receive a better customer experience.

(PwC)

Good customer experience will go a long way to securing loyal customers. As such, brands will be positioned to sell products at an increased price, as well as more frequently, without ever compromising the perceived levels of value.

Content marketing adopters see conversion rates that are over 5x higher than non-adopters.

(HubSpot)

Engaging content verifies a brand’s place as an authoritative voice and further cements the emotional connection. Personalized content leaves a particularly strong impression on past clients.

54.7% of loyal customers are only loyal to a maximum of five brands.

(Yotpo) 

Most people are loyal to at least one brand, only 2.5% to 3.6% are devoted to 20 or more brands. The majority of consumers - 85.8% - are loyal to no more than 10 brands. An audience share of between 6.2% and 8% is loyal to between 10 and 20 brands.

73% of chief executives state that their brands rely on existing clients more than new leads.

(Gartner)

Despite acknowledging the importance of existing customers for sustained results, many companies still fail to unlock the full potential of their current fan base. Brands that do better through remarketing and loyalty schemes are set to thrive.

80% of people will look elsewhere if they have just two bad experiences with a brand.

(Zendesk)

Half of all consumers won’t tolerate even one mistake, even if the brand rectifies it quickly. Repeated bad experiences are a testament to a company’s lack of care, and ward off most people.

Up to 81% of consumers want to have active relationships with brands.

(Merkle Inc)

People enjoy familiarity, which is why they’d prefer to stay loyal to the brands they use. Therefore, the companies that give them a good enough incentive to keep using their services stand to see fantastic short- and long-term returns.

67.8% of consumers state that repeat purchases are what constitutes loyalty.

(PR Newswire)

Other factors such as advocating the brand, using one product for the long haul, and connecting with it on social media all count. However, most agree that being a loyal customer means making more purchases and spending more cash - especially if there are cheaper alternatives.

75% of the consumer population feel that incentives encourage them to make another purchase.

(wirecard)

Consumers are consciously aware that loyalty reward programs influence their habits. They also state that these incentives have much more impact than adverts and other marketing strategies that may be used.

Customer acquisition costs 6-7x more than retention marketing.

(SuperOffice)

The fact that retaining current clients is vastly cheaper than getting new ones makes focusing on loyalty a sage move for SMEs working on tight budgets. What’s more, the conversion rates and purchase frequencies are far higher, too.

B2B Loyalty Data

Differences between B2B and B2C ventures exist and should not be ignored; here are some additional facts that B2B firms may find useful.

Roughly two-thirds (65%) of B2B companies can successfully upsell to existing customers.

(Unilog)

Upselling and cross-selling to existing clients is one of the reasons that up to 80% of sales can come from 20% of clients. It can be especially useful in B2B arenas, where clients are likely to spend larger amounts and are hesitant to change suppliers.

82% of B2B marketers focus on acquisitions compared to just 48% who focus on retention.

(Marketing Charts)

Given the value of existing clients, these statistics show that a large number of companies continue to ignore the vast opportunities presented by a commitment to building a loyal fan base rather than a larger one.

77% of B2B companies use email marketing newsletters as part of their strategy.

(OptinMonster)

Email marketing is extremely cost-effective, but it can also be personalized to establish a stronger response from the recipient, which makes it a relatively unique channel. However, now that customers primarily opt in for email marketing instead of out means this strategy is predominantly loyalty-oriented.

Only 61% of experts use the right metrics to track their omnichannel experiences.

(Forrester Research)

Managing the effectiveness of an omnichannel experience is crucial for B2C and B2B ventures. However, B2B clients will find it especially important, as they may need to collaborate with colleagues or pick up interactions across different devices.

Only 29% of B2B clients consider themselves fully engaged with vendors.

(Gallup)

With 71% of B2B customers disengaged or indifferent, it is clear that organizations must pay added attention to developing the right products, services, and retention rewards to keep clients happy.

70% of businesses improve client experiences to meet personalization expectations, while 60% do it for driving customer loyalty in general.

(Access Development)

Businesses wanting to improve client experiences for loyalty show a deeper understanding of its value for consumers and brands alike. This can relate directly to loyalty reward schemes or general client interactions.

40% to 50% of companies have used the same vendors for at least five years.

(B2B International)

Most companies will stick with their current vendors unless there is a reason not to. This is mainly because businesses value their time and want the added sense of convenience. So, if you perform well, they will stay.

How Brand Loyalty Links To Employees

Brand loyalty isn’t only important for its own sake; companies that make the most of it will also see benefits that impact customer care, productivity, and employee satisfaction. Here’s why:

92% of clients trust brand advocates more than brand advertising.

(Convince & Convert)

Moreover, content shared by employees boasts 24 times more shareability than brand messages. As such, building a team of workers that show brand loyalty can be the first vital step towards establishing a healthy level of brand loyalty from clients.

58% of customers who rate a company positively are likely to try its new products.

(Nuvi)

Brand loyalty can boost the sales figures of new product lines through direct advocacy.

Takeaway

As you can see, retaining customers should be a priority for companies across every industry. Sales from loyal clients can be generated with greater success and efficiency than from new clients, which ultimately leads to a better bottom line.

Besides, a company that knows how to retain clients can subsequently use that blueprint to unlock increased customer lifetime values from new users too. All in all - build brand loyalty, and sustained success will follow.