43% of customers spending more money at brands they’re loyal to, brands that don’t put their returning customers first are losing out on significant revenue gains.
Need more reasons to invest in customer retention in 2018? We’ve listed out 13 eye-opening brand loyalty statistics in this report.
Here are the trends we’re seeing in customer retention and brand loyalty:
These surprising statistics present a strong case for why every business in the United States should invest more of their efforts into facilitating brand loyalty and customer retention.
With 65% of your all your business coming from customers who already know your brand, the future of your business depends on your ability to retain your customers, and keep them happy.
Even more convincing, 80% of your future profits will come from 20% of your existing customers.
If you want to keep a strong revenue stream for your business in the future, you should be thinking about how to keep your customers coming back.
If you want customers to spend more money at your company, try investing in retention.
Three eye-opening brand loyalty statistics hit this point home:
So, what does this mean for you? Putting marketing effort into pleasing your customers and retaining them means more revenue for your business.
Another reason why investing in brand loyalty is smart for small businesses?
Investing in acquiring new business costs 5 times more than investing in returning business does.
A simple customer loyalty statistic shows just how cost-effective a customer retention strategy can be.
A small decrease in churn rate can lead to a big increase in profit:
Lowering your customer churn rate by 5% could leave to over a 100% spike in profitability.
Why are your customers not coming back time after time?
These customer retention statistics shed light onto your customer’s mindset when deciding who to do business with.
57% of customers listed that they would stop doing business with a brand if they had a negative review go unaddressed despite having received additional communications from the company—such as promotions for their products.
Customers want to feel recognized when they have a negative experience, so an easy way to boost customer retention is to stay on top of responding to reviews—both positive and negative.
With half of all customers citing bad sales and marketing experiences as the reason why they don’t stay loyal to brands, it’s crucial that you invest in a top-notch customer experience team.
Customers want immediate contact with help when they need it.
42% would not go back to a company if they didn’t have a live chat, or real-time customer support line.
Have you invested in brand marketing? If not, customers might not be coming back because they don’t trust you anymore.
Almost half of all customers stop doing business with a company if they feel their brand isn’t trustworthy.
More than half of all customers leave because they feel the company is indifferent to their business.
Customers can easily choose to go to another company, so convince them to stay by making them feel appreciated.
You might have heard that content is king.
Turns out, it could be king for customer retention, too.
Over half of all customers won’t shop with a retailer that doesn’t provide great content and good coupons.
On the flip side, what keeps customers loyal?
These customer retention statistics show what customers want to see from their favorite brands.
It’s no surprise that customers stick with the brands that are easy on their wallet but also provide excellent value:
A whopping 92% of loyal customers come back for the good prices and value.
Customers will stay loyal to you if you show that you’re sympathetic to their priorities and preferences as a consumer.
56% of customers stay loyal to brands who “get them” and 89% of customers stay loyal to brands who share their values.
Give customers a tangible reason to keep coming back by offering a rewards program for loyal customers.
69% of customers choose their retailer based on where they can earn the most rewards points from loyalty programs.
Maddie Shepherd is a former Fundera senior staff writer and current contributing writer for Fundera.
Maddie has an extensive knowledge of business credit cards, accounting tools, and merchant services, but specializes in small business financing advice. She has reviewed and analyzed dozens of financial tools and providers, helping business owners make better financial decisions.