There are two types of customers – loyal customers and transactional customers. Transactional customers are consumers who will go to the brand that is closest to home or one that is continually providing the lowest prices. They are more than happy to go and spend elsewhere if prices rise or stores move closer to them. Loyal customers are different – they will look at one particular brand regardless of the convenience, price and other outside factors. Loyal customers are your biggest and best source of long-term revenue. They are also guaranteed to spread the word of your brand to other potential customers.
Based on a huge level of statistics, the smartest and most profitable business decision you can make is to ensure you are investing time, effort and strategy into securing loyal customers. They will continually help your business grow and generate a lot more sales than new customers.
Here is proof that customer loyalty should be a priority for your brand.
Customer Loyalty – 10 Powerful Statistics
- 77% of people are considered brand loyal. Of these, 37% make repeat purchases and are loyal to a company and 40% make repeat purchases but are not necessarily “loyal.”
- Millennials are more brand-loyal than any other age group.
- Women are 22% more likely than men to always buy the product or services regardless of price, quality, convenience, or brand promise.
- 86% of consumers say loyalty is primarily driven by likeability and 83% of consumers say trust.
- Existing customers are 50% more likely to try new products and spend 31% more than new customers.
- Companies lose 71% of consumers due to poor customer service.
- The cost of bringing a new customer up to the same level of profitability as an old one is up to 1,600% higher.
- On average, loyal customers are worth up to 10 x as much as their first purchase.
- 47% of customers would take their business to a competitor within a day of experiencing poor customer service.
For brands out there still wondering what budget they should be putting towards customer loyalty strategies in 2018, these statistics may help you decide.
To get more information on customer loyalty and how feedback is the key to driving loyalty, book a demo with Jago today