27 Top Customer Loyalty Statistics For 2024 (Data + Trends)

Are you interested in reading up on the latest customer loyalty statistics?

Customer loyalty is something every brand wishes they can achieve. It costs less to market to loyal customers than it does to new ones.

In this post, we share several statistics that prove the importance and effectiveness of customer loyalty.

We’ve organized them into a few different categories including general customer loyalty stats, statistics on customer loyalty programs and statistics on customer retention.

General customer loyalty statistics

1. Purchases from loyal customers make up 41% of a company’s revenue

According to Smile, loyal customers make up 8% of an ecommerce website’s traffic while purchases from these customers make up 41% of that company’s total revenue.

Source: Smile¹

2. 55.3% of customers say a company’s product is what makes them loyal to a brand

The majority of customers use a company’s product to determine whether or not they’ll remain loyal to that company.

According to Yotpo’s survey, 55.3% of customers say they consider a company’s product as being most important when determining what makes them loyal to a brand.

Here are other aspects of a business customers use to determine their loyalty:

• The product – 55.3% of customers say this is important when determining loyalty
• Great deals – 25.7%
• Customer service – 7.1%
• Convenience – 5.7%
• Other – 3.2%
• Cause or charity – 1.8%
• It’s popular – 1.2%

Source: Yotpo

Note: If you need help deciding what types of products to sell, check out our post on the best products to sell online.

3. A loyal customer spends five times more than a first-time customer

Smile’s data on customer loyalty states that a returning customer spends three times as much as a first-time buyer does while a loyal customer spends five times as much.

Source: Smile¹

4. 37% of customers say it takes five or more purchases to make them loyal to a brand

According to data collected by Yotpo and shared on Ecommerce Bonsai (previously Startup Bonsai), the majority of customers, or 37%, say they need to make five or more purchases from a brand before they’ll consider themselves loyal to them.

Here’s how other customers in the survey responded:

• Five or more purchases – 37% of customers say it takes this many purchases before they’ll consider themselves loyal to a brand
• Three purchases – 33%
• Four purchases – 17.65%
• Two purchases – 12.35%

Source: Ecommerce Bonsai¹ (previously Startup Bonsai)

5. A loyal customer is nine times more likely to convert than a first-time visitor

According to Smile, loyal customers are nine times more likely to convert than first-time visitors.

They used Adobe as an example, a company who saw a dramatic 70% increase in conversion rates from customers who were making their second purchases.

Source: Smile¹

6. 60% of customers will tell friends and family about brands they’re loyal to

In Yotpo’s consumer survey about customer loyalty, 60% of customers will reportedly tell friends and family members about brands they’re loyal to.

Source: Yotpo

7. Repeat customers spend 25% more during the holidays

Smile’s data states that the average shopper spends 17% more at retail stores during the holidays.

When a shopper is a repeat customer, that rate increases to 25%.

Source: Smile¹

8. Repeat customers are 2.5 times more likely to refer your store to others

Smile’s data states that when it comes to friend referrals, repeat customers are 2.5 times more likely to share your store than the average customer would.

Source: Smile¹

9. 39.4% of customers will buy from another brand if a cheaper price is found elsewhere

Cost is a huge factor in customer loyalty.

According to customers who took Yotpo’s survey, 39.4% of customers will buy from another brand if they’re able to find a cheaper price from that brand.

Source: Yotpo

10. 55% of customers would be more loyal to a brand if that brand provides better customer service

According to a survey conducted by New Voice Media, 55% of customers are more loyal to brands that offer better customer service.

47% would be more likely to recommend the business to their friends and family while 26% would purchase from the company more frequently if they offered better customer service.

Another 26% would spend more money with the company.

Source: New Voice Media

Customer loyalty program statistics

11. 52.3% of customers are willing to join a customer loyalty program

According to Yotpo’s survey, 52.3% of customers are willing to join a brand’s loyalty program or VIP program.

Source: Yotpo

12. A customer loyalty program results in a 28% increase in revenue year over year

After helping launch 5,000 customer loyalty programs, Smile discovered that the average business sees a 28% increase in revenue year over year after launching a customer loyalty program.

Customer loyalty programs also result in a 40% increase in customer lifetime values on average as well as a 20% increase in average purchase rates.

Source: Smile¹

13. The average ecommerce redemption rate is 13.67%

Smile defines “redemption rate” as being “the number of the points you issue to

customers that are actually spent on a reward.”

According to their data, the average ecommerce redemption rate is 13.67%.

Redemption rates go as low as 1% on the low end and as high as 32% on the high end.

Source: Smile²

14. The average ecommerce store only dedicates 19% of their marketing budget to customer retention

Smile states that repeat and loyal customers make up 41% of a company’s total revenue.

In spite of this, only 32% of C-level executives believe customer retention to be a marketing strategy worth focusing on.

Smile guesses this to be the reason why the average ecommerce store only dedicates 19% of their marketing budget to customer retention.

Source: Smile¹

15. Businesses from Singapore have the highest customer loyalty program redemption rate at 17.82%

The average redemption rate across the globe is 13.67%, according to Smile.

The company’s data on its customer base also states that Singapore-based businesses have the highest average redemption rate at 17.82% while Indonesia has the lowest at 9.76%.

Here’s how these numbers compare to the average redemption rates of other countries:

• Singapore – Singapore has the highest average rate for customer loyalty programs at 17.82%
• Canada – This country’s average redemption rate is 16.88%
• United Kingdom – 15.57%
• Australia – 15.21%
• United States – 14.89%
• New Zealand – 14.01%
• South Africa – 13.29%
• Hong Kong – 12.13%
• Rest of the world – 11.7%
• Indonesia – 9.76%

Source: Smile²

16. Customer loyalty programs that give customers 5.5 ways to earn points have the highest redemption rates

According to Smile’s data, customer loyalty programs that give members 5.5 ways to earn points wind up having the highest redemption rates than the average program, which gives three ways for customers to earn points.

Customer loyalty strategies businesses can use to give customers ways to earn points include making purchases, registering an account with your ecommerce store and friend referrals.

Source: Smile²

17. Businesses that allow members to earn customer loyalty points from Twitter follows have the highest average redemption rate at 16.39%

Some customer loyalty programs allow members to earn points by attracting more followers to your social media accounts.

According to Smile, customer loyalty programs that allow members to earn points from Twitter follows have an average redemption rate of 16.39%.

The average redemption rate of businesses who allow members to earn points from Facebook likes is 12.26%.

The average redemption rate of businesses who allow members to earn points from Instagram follows is 7.76%.

Source: Smile²

18. Lucy & Yak saw an 80% increase in customer spend from their loyalty program

LoyaltyLion is a service businesses can use to launch and operate their own customer loyalty programs.

According to a case study from LoyaltyLion, Lucy & Yak saw an 80% increase in loyalty program members spend and a 78% increase in the number of orders they receive.

Here are statistics from additional case studies from other LoyaltyLion customers:

• Pacifica Beauty – This company saw a 47% increase in repeat purchase rates and a 46% increase in customer spend. Plus, 35% of this company’s revenue now originates from loyal customers.
• MoxieLash – This company’s loyalty program members were three times more likely to return to make repeat purchases. The company also receives an average spend that’s 1.5 times higher and an average number of orders that’s 1.5 times higher from loyalty program members than non-members.
• 100% Pure – This company has seen a purchase frequency that’s three times higher than it was before they launched a loyalty program. They’ve also received $244,000 in additional revenue.

Source: LoyaltyLion¹, LoyaltyLion², LoyaltyLion³, LoyaltyLion⁴

Customer retention statistics

19. It costs businesses seven times more to acquire a new customer than it does to retain an existing customer

Smile says acquiring new customers costs businesses seven times as much as it does retaining existing customers.

This is because ecommerce businesses often spend a lot on advertising through social media sites, AdWords and even traditional forms of advertisement.

Source: Smile¹

20. A 5% increase in customer retention rate can increase profitability by 25 to 95%

According to Smile’s data on its own customer base, a 5% increase in a business’ customer retention rate can increase profitability by anywhere between 25 and 95%.

Source: Smile¹

21. The professional services industry has an average customer retention rate of 84%

According to data collected by Profit Well and published on Ecommerce Bonsai, the professional services industry has a high customer retention rate at 84%.

Here are the average customer retention rates of other industries, as reported by Ecommerce Bonsai:

• Professional services – This industry has an average customer retention rate of 84%
• Media – 84%
• Insurance – 83%
• IT services – 81%
• Telecom – 78%
• Banking – 75%
• Retail – 63%

Source: Ecommerce Bonsai²

22. 72% of customers make plans to switch to a different brand after a negative customer support experience

According to Hiver, the vast majority of customers make plans to switch to another brand after a bad experience with a company’s customer support team.

71.82% of customers said they would switch brands after a negative experience.

Here’s what else customers might do after a negative customer support experience:

• Plan to switch to a different brand – 71.82% of customers would do this
• Tell your friends and family not to purchase from this brand – 52.48%
• Share your experience on social media/review sites – 35.87%

Source: Hiver

23. Over 60% of consumers say bad employee attitudes keep them from making repeat purchases

According to a survey conducted by PWC, over 60% of consumers say bad employee attitudes are the biggest factor that drives them away from businesses.

Here are other factors that keep consumers from making repeat purchases with the same company:

• Bad employee attitudes – Over 60% of consumers say this is a factor that drives them away from businesses
• Unfriendly service – About 59%
• Untrusted company – About 49%
• Unknowledgeable employees – About 45%
• Inefficiency – About 43%
• Product not always available – About 39%
• Technology doesn’t help guide purchases – About 16%
• Inconsistent store experiences – About 13%
• Slow to introduce technology – About 11%
• Doesn’t know me – About 8%
• Not automated – About 8%
• Not global – About 4%
• Doesn’t use celebrities – About 2%

Source: PWC

24. 63% of customers would be more likely to purchase from a company again if they experienced a positive emotional connection to the brand

According to New Voice Media, the majority of customers, or 63%, say they would be more likely to purchase from a company again if they felt they had made a positive emotional connection to the brand or the customer service agent they spoke to.

31% of customers say being able to contact a brand through any top channel is a key factor in feeling emotionally connected to that brand.

Here are other factors that impact a consumers’ ability to feel emotionally connected to a brand:

• Being able to contact a brand through any top channel – 31% of customers say this is a key factor in helping them feel emotionally connected to a brand:
• Talking to a highly knowledgeable agent – 23%
• Personalized customer experience – 20%
• Finding the shopping experience exciting or fulfilling – 20%
• Being able to find the information they needed – 19%
• Not being kept on hold – 14%
• Having a high-quality phone call connection with an agent – 11%

Source: New Voice Media

25. Customers who switched brands were spending an average of £308 per year

According to a survey conducted by New Voice Media, customers who switched brands were spending an average of £308 per year.

Based on the number of customers who reportedly switched brands, New Voice Media estimates this loss in business to amount to £7.1 billion in UK spending.

According to this company’s survey, 57% of customers in the UK switched brands at least once over the course of a year due to poor customer service.

43% switched brands two or more times.

Source: New Voice Media

General consumer statistics

26. 73% of consumers around the world name customer experience as being an important factor in purchasing decisions

According to a survey conducted by PWC, 73% of global consumers point to customer experience as being an important factor in purchasing decisions.

Even so, only 49% of U.S.-based consumers say companies provide a good customer experience.

Source: PWC

27. 77.33% of consumers use email to get in touch with customer service

According to a survey conducted by Hiver, the majority of customers, or 77.33%, use email to contact a business’ customer service team.

Here are other methods companies use to contact customer service:

• Email – 77.33% of consumers use this method to contact customer service
• Phone – 63.43%
• Live chat – 63.28%
• Social media – 28.65%
• Communities and forums – 10.48%

And these are the top complaints consumers have about each support channel:

• Email – 51.09% of consumers say it takes too long to get a response with email.
• Phone – 38.82% of consumers say phone support has too long of waiting times.
• Live chat – 38.12% of consumers find it frustrating when chatbots are unable to understand context.

Source: Hiver

Final thoughts

Brand loyalty is a powerful tool ecommerce businesses can use to increase their revenue. Our collection of customer loyalty statistics proves that.

It’s hard to build brand loyalty, but being actively involved with customer engagement and meeting customer expectations in every way can be a big help.

The most effective ways to build brand loyalty include providing a great product, a good customer experience and amazing customer service.

A customer loyalty program can help as well, especially if it offers customers the opportunity to earn points they can redeem for free products or deals that are actually worth it.

Be sure to read our guide on marketing strategies for ecommerce businesses if you need more help in this department.

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