What’s the first word that comes to mind when you think of something disposable you’d use to wipe your face?
Is it a) tissue or b) kleenex?
If you’re reading this in North America, chances are it’s going to be the second one.
But did you know it’s actually a registered trademark?
That’s right. A brand name is used more often than the generic term. Brand loyalty on a subliminal level.
And this fun fact is only one of the most important customer loyalty statistics I’ve collected to bring you up to speed with the state of the field in 2019 and beyond.
But before digging deep into every interesting stat, let’s have a look at some important fascinating facts first.
Intrigued? I bet you are. And there’s plenty more where that came from.
Let’s dive right in.
Which is better – keeping your existing customers or recruiting new ones?
Let’s see what the stats have to tell us.
Attracting new customers is no easy task. It takes plenty of time and effort and a lot of money.
Which begs the obvious question:
“Why not prioritize your existing customer base instead?”
Actually, it makes perfect sense to do so.
According to customer loyalty stats, most of your profit will come from one-fifth of your existing customers.
And it’s not just about short-term profits.
(Source: Annex Cloud)
Thanks to customer loyalty statistics for 2018, we already know how expensive and time-consuming it is to recruit new customers expensive.
But the difficulties don’t end there:
Building a long-term relationship with them requires top dollar as well.
Statistics of customer loyalty tell us existing customers are far more likely to buy your product than first-time visitors. By increasing your customer retention, you can boost your profits significantly.
(Source: Vision Critical)
Connect with your customers on an emotional level, and they’ll repay you with unwavering loyalty.
Here’s the key takeaway:
Highly-engaged customers will buy a lot more often and spend more on each transaction than customers who are ambivalent about your company. This is why brand loyalty is important.
Which brings us to the next question…
First of all, here’s a handy formula you can use to calculate your own customer retention rate courtesy of the guys at Hubspot:
Customer Retention Rate = ((# Customers at End of Period – # Customers Acquired During Period)) / # Customers at Start of Period)) X 100
So, what is a good customer retention rate?
Unfortunately, there’s no simple answer.
The thing is:
Customer retention rates tend to vary significantly across different industries.
What’s considered a good retention rate for a media company might be well below average for an online store. That’s why you should pay close attention to the latest trends and developments in your niche.
There are plenty of factors that can lead to a low customer retention rate.
It should come as no surprise that the most important ones have to do with engagement.
Consumer reports on customer service are clear:
If you don’t give a hoot about your customers, don’t address their legitimate criticism, and don’t offer them any incentives, they’re likely to turn to the competition. And you’ll suffer huge losses.
It’s not like yours is the only small business selling printed T-shirts and tote bags – and small businesses fail at an alarming rate.
And now that we know why customers leave, let’s check out what keeps them coming back for more.
Here’s what the latest consumer loyalty statistics have to say:
(Source: Business Wire)
If you’d like to bump up your customer retention rate (and, let’s face it, what business owner doesn’t), you should start by offering a quality product at a competitive price.
Next, you should widen your product range.
Finally, as customer loyalty statistics for 2019 make clear, you need to make sure each and every one of your customers gets a shopping experience perfectly suited to his or her unique needs.
As spy extraordinaire Harry Hart put it in the movie Kingsman: The Secret Service:
“Now the first thing every gentleman needs is a good suit. By which I mean, a bespoke suit.”
Can’t argue with that.
And here are some strategies to boost your customer retention:
Once again, it all boils down to engaging with your customers in a courteous and constructive manner.
Loyal customers will appreciate your respect for their opinions and your efforts to act on their feedback, as the latest statistics on customer loyalty programs highlight.
Take extra care not to creep out your customers! According to a 2016 report, this happens most often when companies misuse personal data, fail to delete data upon request, or use invasive marketing tactics.
(Source: Business Wire)
Brand loyalty statistics for 2018 suggest negative sales experience affects millennials far less than it does older generations. Click To TweetWhile poor customer service remains a big turn off across the board, over half of millennials are willing to stick with the brands they’re loyal to through thick and thin.
And that’s great news for startup owners, in particular, as they face an uphill struggle to stay in business.
“The things we do for frequent-flyer mileage,” as James Bond sarcastically noted in Goldeneye. On that particular occasion, he had to catapult out of a stationary helicopter seconds before it got demolished by Stinger missiles.
The thing is:
Glib remark or not, we all cling on to loyalty schemes in the face of adversity. And we’re willing to book that slightly more expensive flight from New York to Warsaw as long as it’s going to earn us a few extra miles on our Star Alliance membership card.
Even if there’s a five-hour layover in Tangier.
Big brands like Amazon, Apple, and Starbucks offer some pretty lucrative loyalty schemes – and customers on both sides of the pond are getting hooked!
Small businesses are increasingly getting in on the action in order to improve customer retention by rewarding loyal customers.
Which brings us to the $64,000 question:
Indeed they are – to a surprising extent.
These customer loyalty stats unequivocally show customers aren’t as fickle as many would have you believe.
Bottom line:Nurture your existing customer base, and you’ll reap the benefits Click To Tweet
Now that we’ve studied carefully the latest customer loyalty statistics, we can safely conclude two things:
First, customers expect a diverse range of high-quality products. Yes, content is king – in more ways than one.
Second, customized offers and exemplary customer service are absolutely crucial. And you have only one chance to get it right. One strike and you’re out.
As long as you meet your customers’ (admittedly high) expectations, your venture will live long and prosper.
Cheers to that!
Now get a kleenex and wipe those tears of joy.