9 Stats That Prove the Value of Building Loyalty

Peter Roesler, President - Web Marketing Pros

By Peter Roesler

President, Web Marketing Pros

customer-loyaltyJust about every company depends on repeat business. It’s not enough to get customers to shop at a business or website for the first time. It’s more expensive to solicit new customers than it is to get old customers to come back. At least, if the business provided a good experience and service to the customer. One way business owners can improve repeat business is to use loyalty programs. There have been several studies in the last few months that showcase the value of loyalty programs for consumers and businesses. Here are nine stats that show the value of loyalty programs in 2015.

  1. According to a recent study from Experian, three out of four (75%) US companies with loyalty programs generate a return on investment. This clearly shows a benefit for most companies who spend the money on loyalty programs.

  1. The study also expressed this value in sals. According to Experian, 69 percent of US companies with loyalty programs track the lifetime value of each customer, for an average value of $1,803.

  1. However, there are ways program implementation can be improved. The Experian researchers noted that 64 percent of US companies with loyalty programs say data collection needs to be improved, 56 percent cited a need for better customer sign up, and 53 percent wanted more personalization.

  1. Customer loyalty can be also be enhanced through better in-store features. A recent study from EarthLink found that 28 percent of retailers that install in-store WiFi reported increased customer loyalty.

  1. Loyalty programs are a good way to show customers that a business cares. A study from KiteWheel reported that one in four (25%) consumers are frustrated when a company fails to recognize them as a past or current customer.

  1. The KiteWheel study also shows that business owners need to align their loyalty program with the wants of consumers. The study found that 73 percent of consumers say loyalty programs should be a way for brands to show how loyal they are to them, but 66 percent of marketing executives say the programs should be a way for consumers to show how loyal they are to their business.

  1. It’s important to note that loyalty programs are increasing in usage and participation. According to a Harris Interactive Poll performed for Transera, there are 2.6 billion loyalty program memberships in the US. That’s approximately 11 for each adult in the country. And the programs are being used. Loyalty program memberships increased by 26.7 percent between 2012 and 2014.

  1. Loyalty programs are also a good way to get consumers to offer data to a company. A recent Loyalty360, webinar noted that 67 percent of US adults would be willing to give companies access to basic personal information in exchange for better service or products

  1. To show the benefit of this kind of data, the study noted that one in four (25%) of US adults say their overall customer experience has improved in the past 12 months due to increased use of personal data about them by the companies they typically buy goods and services from.

Fostering customer loyalty is important for businesses who want to increase repeat business as a way to improve profitability. There are a variety of ways that business owners can build loyalty, as was shown from the data. And these programs have a noticeable affect on customer loyalty and sales.


For more information on the value of customer loyalty, read this article on how customer loyalty drives profitability.

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