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33 Customer Loyalty Statistics You Should Know in 2020

Customer loyalty statistics, now, more than ever, there is a need for businesses to keep a hold of customers and ensure brand loyalty!


The best possible way is by providing the most wonderful customer experience ever for your clients. 

With the rate of competition out there, price is no longer the determining factor. Instead, it is now about who offers the best products, alongside the best customer experience. 

The following customer loyalty statistics for 2020 will give you more clarity on the subject.

Mind-Blowing Customer Loyalty Statistics for 2020

Here are some of our incredible customer loyalty stats to get you started on the need to take customer experience seriously.

  • The overall profitability of a business can increase by 25-125% when its churn rate is reduced by 5%.
  • 43% of customers spend more on brands that they are loyal to than those that they are not.
  • 89% of customers say that they will remain loyal to a brand if it shares similar values with them.
  • If your business is not doing enough to engage your customers, 54% will consider dropping you.
  • Your chances of selling to a new customer are just between 5% and 20%, whereas that chance rises to 60% or 70% for existing customers.
  • 75% of consumers will favor a brand if there is a loyalty program that rewards members.
  • 93% of your customers will most likely come back for another purchase with your brand if their previous experience was good.

Now you see how beneficial customer loyalty can help to improve your business in all areas. Let’s dive even further!

Customer Loyalty Statistics
Customer Loyalty Statistics. image by piqsels.com

General Customer Loyalty Statistics

Here are more statistics about customer loyalty that show its effect across various industries, programs, and markets.

1. 43% of customers spend more on brands that they are loyal to.

(: Fundera)

Why are customers spending more on brands that they are loyal to even though there are other reliable alternatives in the same market? The answer is “trust.” Recall the first time you had a remarkable customer experience with your favorite brand. You continued buying from them for years. Even though their prices may be slightly higher, you find yourself paying. This is because they have established trust by providing you with the best product quality and excellent customer experience from the onset. That’s why successful branding is crucial for success. 

2. 89% of customers say that they will remain loyal to a brand if it shares similar values with them.

(: Fundera)

According to facts about customer loyalty for 2020, the traditional way of making sales without putting much effort into understanding your customers no longer works (at least not in the long run). If you want to increase customer loyalty to your brand, then you need to reach out to the right audience (people that need your product). Also, you need to design your marketing message towards what your customers value. Lastly, you need to make their customer experience sublime.

3. If your business is not doing enough to engage your customers, 54% will consider dropping you.

(: Fundera)

Remember that in business, people’s buying decisions are influenced by emotions. Customer engagement entails how you build that emotional relationship with your customers.  According to customer loyalty stats, it could range from funny memes to responsive blog or social media posts, personalized discounts, or even gifts. Either way, the goal is to keep your customers highly engaged with your brand, while also making more sales, improving brand loyalty, and increasing brand awareness.

4. Your chances of selling to a new customer are just between 5% and 20%, whereas that chance rises to 60% or 70% for existing customers.

(: Forbes)

Did you know that only 2% of web traffic converts on their first visit to your website? According to customer loyalty statistics, most times, consumers don’t buy on their first encounter with a brand. Your marketing and your brand message need to win them over first. When you have successfully earned their trust, you can easily upsell and cross-sell other related items to them with a high success rate.

5. 93% of your customers will most likely come back for another purchase with your brand if their previous experience was excellent.

(: Hubspot)

In such a vast market, excellent customer service is how you stand out. According to facts about customer loyalty, it is how you get loyal customers. 

Today’s customers face a selection dilemma, with many options out there to choose from. However, if you go out of your way to impress your customers, you would have successfully given them a good reason to come back. In most cases, most of your customers will always take up that chance to return for more. Creating a bond or emotional connection through your excellent customer service and product is a must.

6. Existing customers are behind 65% of a company’s business.

(: Forbes)

Customer loyalty stats for 2020 claim that a delighted customer will rave about your brand anywhere, and will always recommend your products. In most cases, positive word-of-mouth reviews will be more successful than any of your marketing campaigns combined. This is because it will bring in more customers to you without you having to spend a dime on marketing. If your company is only focused on bringing in new leads, then you might want to reconsider your marketing strategy. Of course, this does not rule out the importance of bringing in new leads and nurturing them. We can also recommend the best lead generation software on the market.

However, you should also focus on retaining these incoming leads and turning them into loyal customers.

7. 87% of Americans will gladly give up some form of privacy in exchange for excellent customer experience or reward.

(: Bond)

Strict regulations are guiding the release and usage of data across any industry in the world economy today. Gone are the days when the collection and usage of consumer data were done freely, without regulations, and without backlash. 

Here’s a fun fact.

Customer loyalty stats show that consumers love personalization. They are ready to give up some form of privacy, provided they receive a personalized experience. Personalization could be anything from addressing them by name in your email newsletter. Without a doubt, email marketing is a powerful channel. That’s why we ranked the best tools in the industry.

You can also offer them customized coupon codes for an item that they were interested in, or even acknowledging their previous transactions with your brand.

8. 77% of customers have stayed loyal to a specific brand for at least 10 years.

(: In Moment)

Have you ever wondered why people trust a particular brand for an extended period of time? 

The answer here is “consistency.” Before finally settling with you, your customers must have scoured the market looking for a brand that “gets them.” “Getting them” means having relevant marketing messages and outstanding customer service. If you can successfully maintain the same qualities that attracted your customers to you, and make adjustments/improvements in the long run, then you can successfully win their loyalty.

9. 55.3% of consumers will remain loyal to your brand if they love your product.

(: Yotpo)

According to customer retention stats, poor product quality is the main reason why 51% of customers will abandon a brand. Also, 23.5% will leave due to poor customer service. Customer experience is fast becoming essential. 

Still, it’s not enough if you have a terrible product. Your product needs to meet customers’ standards – else you lose more than half of them. 

10. According to 37% of consumers, it takes at least 5 purchases before they consider themselves loyal to your brand.

(: Yotpo)

We mentioned earlier that most consumers don’t convert on their first encounter with a brand. Even when they do, you still need to get most of them back at least 5 more times before you can consider them loyal to your brand. 

Getting customers to come back several times is no easy feat, but it is worth the effort. According to customer loyalty statistics for 2020, loyal customers will spend more, refer your brand to others, and even join your loyalty programs, without you having to convince them to do it.

11. 57% of customers say that they would cease being loyal to a brand if their negative review goes unaddressed.

(: Fundera)

When you leave the negative review or complaint from a loyal customer unaddressed, you are losing that customer. About 97% of your customers read reviews (both old and new), and having a poor unanswered review can kill your reputation fast. This is why you need to monitor all channels of communications and deliver the best possible customer experience at all times.

Customer Loyalty Program Statistics

These are programs or marketing tools put in place by each enterprise to get customers to become repeat buyers. An incentive or reward is usually attached to them. All loyalty programs aim to improve customer retention, collect customer data for personalized targeting, increase customer satisfaction, and ultimately increase business revenue

Here are some statistics on customer loyalty programs that you should know:

12. 70% of your customers will most likely recommend your brand to a colleague if you have an excellent loyalty program.

(: Bond)

According to loyalty program statistics for 2020, loyalty programs are designed to reward customers that have stayed with your brand in the long run. They make customers happy and this gains you positive word-of-mouth reviews, hence, bringing in new clients.

13. 75% of consumers will favor a brand if there is a loyalty program.

(: PR News Wire)

Aside from the rewards that come with loyalty programs, do you know what else consumers want from loyalty programs? 

To feel special. 

An excellent way to make this happen is to collect enough customer data that will enable you to send personalized messages to them. That way, you are successfully strengthening the emotional connection that they already have with your brand. Try, for example, sending personalized birthday messages to customers in your loyalty programs each year, coupled with some freebies.

14. 56% of loyalty programs from brands are reportedly implementing the concept of game mechanics (gamification) into their infrastructure.

(: Bond)

Gamification is simply the process of integrating the concept of game mechanics into other activity areas (such as a loyalty program). Game mechanics include missions, tiers and statuses, new levels to unlock, challenges, etc. That way, your customers can engage with your brand more often to unlock bonuses, all of which is to their benefit. According to loyalty program stats, the aim of introducing game mechanics into a loyalty program is to encourage participation from customers, improve customer engagement, and ultimately to increase revenue.

15. 61% of your customers are hoping that you interact with them more through offers and surprise gifts.

(: Merkle Inc.)


We told you.

Aside from being loyal to your brand, your customers also want to save money. Loyalty program stats for 2020 show that if you offer discounts every now and then or send them surprise gifts as a reward for their loyalty, you’ll benefit immensely.

16. 77% of your customers will become even more loyal to your brand if you accept and implement customer feedback into your business.

(: Microsoft)

We discussed earlier the harmful effects of leaving customers’ negative feedback unanswered. Your customers are humans, not robots. The more you acknowledge their input, the more loyal that they will become. Knowing that their opinion counts and are taken into consideration gives them a sense of belonging.

17. 46.4% of your loyalty program customers expect you to grant them early access to sales.

(: Yotpo)

According to statistics on customer loyalty programs for improving sales, other expected perks of loyalty programs include early access to new products (31.8%), coupon codes, discounts, personalized messages, one-on-one conversations, etc.

18. Customers engaged in a brand’s loyalty program will spend 12-18% more each year.

(: Fundera)

Firstly, customers are ready to spend more on products if they are coming from brands that they trust. Secondly, the use of gaming mechanics in customer loyalty programs ensures that your clients are engaged. 

19. In the US alone, there are 3.8 billion loyalty program memberships in existence.

(: Annex Cloud)

Loyalty programs in the US have become a norm, majorly due to the high rate of competition among retail brands. Currently, 80% of American adults belong to one form of a loyalty program or another.  According to loyalty program stats, if your business is not offering rewards to customers, you will most likely miss out on improving your revenue. 

The most popular loyalty programs in the US are in the groceries, drugstores, dining and apparel, consumer electronics, automotive, and airline sectors.

20. 59.5% of consumers will most likely become members of their favorite brand’s loyalty programs.

(: Yotpo)

Everyone wants to save, even if it’s just a little. Other reasons consumers will most likely choose to become members of loyalty programs are the trust and emotional connection that they already have with a brand. 

Customer Loyalty Industry Statistics

The following are some customer loyalty industry statistics for 2020 to show you some of the leading brands with loyal customers worldwide.

21. 66% of product searches start from Amazon.

(: Feedvisor)

According to Amazon customer loyalty statistics, Amazon has become the most preferred platform for product searches. It makes up 66% of the total product searches, while search engines account for 20%. The rest is split amongst brand websites (4%), retailer websites (4%), other marketplaces (3%), social media (1%), and others (1%). Furthermore, more than 90% of online shoppers in the US have bought something from Amazon.

22. Customer acquisition cost (CAC) for B2B and B2C companies have risen by almost 50% in the last 5 years.

(: Profit Well)

According to Hubspot B2B customer loyalty statistics, 81% of consumers will trust the advice from a colleague, friend, or family over any business advice. The same report also reveals that 55% of consumers have lost trust in companies they patronize. 65% say that they don’t trust company press releases, and 65% claim that they do not trust advertisements. On top of that, only 31% of people will click on an ad.  Looking at these stats, you would agree that today’s customers need a lot of convincing to convert, not to mention, remaining loyal to a particular brand. Customer loyalty b2b statistics have it that the harder it takes to convince a customer to buy from you, the higher your cost of acquisition.

23. Starbucks’ loyalty program membership increased by more than 25% between 2017 and 2019.

(: Zinrelo)

Starbucks has one of the most used loyalty reward apps. According to Starbucks customer loyalty statistics, since its launch in 2015, the app has enabled customers to make purchases right from their homes or place of convenience. The app also allows customers to earn points that later be used for purchases. Starbucks’ loyalty program has over 16 million members currently enrolled, and they make up for the majority of the coffee market.

24. The average customer retention rate for the majority of industries is below 20%.

(: Hubspot)

Industries such as ecommerce have an average retention rate of 38%, while the media and finance industry have an average of 25%. Others like the SaaS industry and the apps/software industry average 35% and 20%, respectively.

25. Amazon leads the way as the number one brand in terms of loyalty in the US.

(: Marketing Charts)

The study revealed that Amazon has a 93% level of engagement with its customers. Some of the features that earned the brand its position are its refund policy, quality products, loyalty programs, etc.

26. iPhone users have the highest percentage of loyal customers in the smartphone industry.

(: Sell Cell)

According to Apple customer loyalty statistics, more than 90.5% of current Apple mobile customers say that they plan to stay loyal to the brand. 

What could have influenced such a decision? 

Excellent customer support (both online and offline), extreme attention to customer needs and product details, refund policy, simplicity, unique customer experience, a focus on delivering value to customers, etc. The list is almost endless.

Apple pays so much attention to customer feedback to guide their decision making on newer products. The whole marketing of Apple is tied to the satisfaction of their customers, and their clients love it.

27. 57% of your customers will try to engage your loyalty programs via mobile.

(: Bond Brand Loyalty)

Mobile is fast becoming the new norm. It is fast, flexible, convenient, and capable of carrying out most of the activities done on a PC. If your business is not optimizing for mobile, you will surely miss out on a lot of deals. Big brands like Google, LinkedIn, Facebook, and Amazon all know this. That is why they already have a mobile-first policy.

Customer Retention Statistics

Many companies focus more on customer acquisition when most of their attention is supposed to be on customer retention. While customer acquisition will bring you into business, customer retention will keep you in business, and help you scale up in the long run. 

Here are some customer retention statistics to shed light on the importance of it:

28. 82% of business leaders agree that customer retention is way cheaper compared to customer acquisition.

(: eConsultancy)

To convert a customer into a loyal one, all you need to do is to provide an excellent customer experience. However, retaining such loyal customers will hinge on you providing continuous value over the years. This is still way cheaper compared to the exorbitant amounts spent on brand awareness and adverts for the acquisition of new customers.

29. 80% of businesses utilize email marketing for customer retention.

(: Bizibl)

The importance of personalization in your customer retention strategy cannot be overemphasized. Customer retention stats reveal that email marketing has been the go-to guy for personalized campaigns over the years. With email marketing, you can successfully run smartly tailored campaigns that will both engage and help you increase customer loyalty over time.

30. The overall profitability of a business can increase by 25-125% when its churn rate is reduced by 5%.

(: Fundera)

Churn rate simply refers to the frequency at which a business changes customers. A reduced churn rate implies an increased retention rate, and such a move has a direct impact on a business’s revenue. Customer loyalty stats reveal that businesses that focus more on customer acquisition suffer from a high churn rate. This is due to a paucity of ideas, engagement, or programs to keep these customers coming back.

31. 42% of your customers will stop using your brand if your customer service has no real-time customer support line.

(: Fundera)

With the advancement in technology, consumers now expect information flow to be faster, more accurate, and readily available for use at any time. Nobody wants to wait for a few minutes or hours while a supposed customer service agent searches for information. Now, more than ever, data needs to be passed across within a few seconds, all in real-time.

32. About 50% of customers have left their most favored brand for their competitor due to the inability of the brand to meet up with their needs.

(: In Moment)

Customer experience is not a one-off thing. According to customer retention statistics, to succeed with customer experience, you need to make it a way of life for your business. That is how successful brands like Apple and Amazon operate. It is a continuous process that never ends – the day your business stops delivering excellent customer service, you start losing a percentage of your loyal customers. According to Annex Cloud, 47% of your customers will defect to some other brand after just one bad customer experience.

33. Businesses in the US lose $136.8 billion yearly due to poor customer retention.

(: Call Miner)

Businesses that aren’t focusing on customer retention are missing out on a lot of free traffic with higher conversion possibilities. This loss runs up to billions of dollars yearly in the US alone.


What did we learn?

Wrap Up

According to customer loyalty statistics, in this time of adverse competition, customer loyalty is non-negotiable. By incorporating excellent customer service and customer loyalty programs into your clients’ experience, you will reap great benefits.

If your business is not bent on increasing customer loyalty, there’s no better time than now.

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