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79 staggering statistics that show the power of loyalty programs in 2022

Loyalty programs have taken over retail. Discover 79 staggering statistics that show the importance of loyalty, explain the growth of loyalty programs, and reveal what makes and breaks customer loyalty. Plus, get insights into the broader loyalty program landscape and learn what loyalty program owners are planning for the future of their programs.

Published:
Updated: 25 Nov 2022
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More than 90% of companies now have some form of loyalty program. Google any brand along with the words “loyalty program”, “rewards program”, or “membership”, and 9 times out of 10 you’ll get a hit.

McDonald’s, Walmart, Disney, Amazon, Costco, The Home Depot, Target, Best Buy, Nike, adidas—the list goes on and on.

So what’s all the loyalty program fuss about? How do loyalty programs work? How effective are loyalty programs? And what factors make or break customer loyalty in ecommerce?

The answers to these questions can be hard to find. So we’ve scoured the web for you and gathered 79 of the most impressive, surprising, and important statistics on customer loyalty and the ever-growing loyalty program trend.

Table of contents
A selection of the top 5 Loyalty program statistics

The importance of customer loyalty

1. 65% of a company’s revenue comes from the repeat business of existing customers.

2. It’s 5-25x more expensive to acquire a new customer than to keep an existing one.

3. 77% of consumers say they've remained loyal to a specific brand for 10 years or more.

4. You have a 60-70% chance of selling to an existing customer, versus a 5-20% chance of selling to a new prospect.

5. 57% of consumers spend more on brands or providers to which they are loyal.

6. A 5% increase in customer retention correlates with a 25% increase in profit.


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How effective are loyalty programs?

7. Members of loyalty programs generate 12-18% more incremental revenue growth per year than non-members.

8. The top performing loyalty programs boost revenue from customers who use them by 15-25% annually.

9. 37% of consumers will spend more money with brands with which they have a retail subscription, as will 28% of consumers belonging to membership programs, and 27% of loyalty program members.

10. 95% of consumers with retail subscriptions who feel close to brands say they will purchase more products from them, as do 95% of consumers who participate in loyalty programs who feel close to those brands.

11. Over 83% of consumers say belonging to a loyalty program influences their decision to buy again from a brand.

12. 75% of consumers in loyalty programs will buy more products from the companies they partner with.

13. 77% of consumers with retail subscriptions buy more products from the brands they have relationships with.

14. 84% of consumers say they’re more likely to stick with a brand that offers a loyalty program.

15. 66% of consumers say the ability to earn rewards changes their spending behavior.

16. 68% of customers in loyalty programs with brands feel the brands better understand their buying preferences.

17. Over 60% of loyalty programs make most shoppers more loyal to a brand.

18. 90% of consumers who believe companies understand their buying preferences are likely to purchase more products from them.

19. 63% of customers with retail subscriptions say they are interested in joining the brand’s loyalty program, and 47% are interested in obtaining a membership.


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Customer loyalty trends

20. 79% of consumers have established some form of relationship with the brands they purchase from—either a membership, retail subscription or loyalty program—and 17% of consumers have all three types.

21. More than 90% of companies have some form of loyalty program.

22. The customer loyalty management market is valued at over 5.5 billion U.S. dollars and is expected to surpass $24 billion by the end of 2028.

23. 77% of consumers now retract their loyalty more quickly than they did three years ago.

24. 61% of consumers switched some or all of their business from one brand or provider to another in the last year.

What brand loyalty strategies make loyalty programs succeed?

Offering deals, discounts & exclusive benefits

25. Access to deals, discounts or free products are consumers’ top priorities for joining loyalty programs.

26. Customers want loyalty programs that are: easy to use (53% of respondents), offer great discounts (39%), and easy to understand (37%).

Loyalty programs succeed when they are: Easy to use, offer great discounts, and easy to understand

27. 79% of customers said being able to unlock exclusive benefits made them loyal.

28. Access to higher-quality items is the biggest driver of retail subscriptions. 12% of all retail subscribers use subscription services to get high-quality products they can’t find anywhere else.

29. A massive 73% of consumers say free shipping greatly impacts their decision to purchase.

Aside from free shipping and discounts (benefits that cost retailers money), the most important loyalty program benefits for customers are:

        30. Early access to sales (60.1%).

        31. Early access to new products (50.8%).

        32. Tailored recommendations (38.9%).


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Apart from free shipping & discounts, customers want early access & tailored recommendations

Personalizing the customer experience

33. 80% of consumers say they’re more likely to do business with a company that offers personalized experiences.

34. 65% of shoppers say they’d share their data for value-adding personalization.

35. 49% of customers reported they’ve made impulse purchases after receiving personalized recommendations.

36. 40% of consumers say they're likely to spend more when encountering highly personalized experiences.

37. 71% of customers expect customer service agents to have personal information regarding their previous interactions with the brand.

38. 63% of U.S. online adults and 71% of Italian online adults are willing to share personal information with companies for perks like cash rewards, loyalty program points, early access to new products, and other value.


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Creating deeper connections & brand advocates

39. 6 out of 10 consumers involved in loyalty programs have more positive experiences with these brands because they believe their connection transcends the transactional.

40. 72% of customers consider loyalty programs part of their relationship with brands.

41. Customers with an emotional relationship with a brand have a 306% higher lifetime value.

42. Customers with an emotional relationship with a brand are 71% more likely to recommend the brand to others.

43. 68% of consumers said they’d join a customer loyalty program for brands they like.

44. 56% of consumers are willing to spend more with a brand they like even if cheaper options exist.

45. 95% of customers say trusting a company increases their loyalty.

46. 83% of consumers reported trustworthiness being the emotional factor that’s most aligned with their favorite brands.

47. Fairness accounts for 80% of the variance of trust in online retailers.

48. Fairness accounts for 56% of the variance of loyalty to online retailers.

49. Brands that offer positive experiences receive three times more word-of-mouth marketing than brands that offer dull experiences.

50. More than half of the most loyal customers actively recommend brands to others.

51. 14% of the most loyal customers express their loyalty by publicly endorsing or defending the company via social media.


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Making your brand values shine

52. 63% of respondents agree they are more likely to do business with brands/companies whose purpose aligns with their values.

53. 60% of consumers rate sustainability as an important purchase criterion.

54. 34% of consumers say they’ll pay more for sustainable products and services.

55. 39% of Gen Z and 42% of millennials say they’d pay a price premium for sustainability.

When a brand is aligned with a customer’s values, that customer is:

        56. 3.4x as likely to recommend your brand

        57. 9.8x as likely to go out of their way to do business with your brand

        58. 9.9x as likely to spend more with your brand

Brand values loyalty statistics

What breaks loyalty?

59. 1 in 3 customers will leave a brand they love after just one bad experience.

60. 92% of customers say they’d completely abandon a company after two or three negative interactions. 

61. 57% of customers won’t recommend a business with a poorly designed website on mobile.

62. 50% of customers will stop visiting a site that isn’t mobile-friendly, even if they like the business.

63. 84% of online shoppers would say goodbye to a retailer after a bad returns experience.

64. 51% of customers reported that having to pay for returns would prevent them from making a purchase.

65. 46% of consumers say they’ll abandon a brand if employees aren’t knowledgeable.

66. Retail subscription providers could lose as much as $2.2 billion per month by failing to offer a better subscription experience. Top performers, regardless of size, offer services such as refunds to build subscriber trust.


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What do loyalty program owners have to say?

67. 80% of loyalty program owners are likely or very likely to revamp their loyalty program in the next three years.

68. 80% of loyalty program owners plan to increase or significantly increase their investments in customer loyalty over the next three years.

69. 87.5% of loyalty program owners plan to engage with customers in non-transactional ways in the next three years.

Loyalty program owners statistics

70. 37% of loyalty program owners say they use some form of personalized rewards or offers.

71. 53% of loyalty program owners say they plan to offer personalized rewards or offers in the next three years.

72. 63% of loyalty program owners are satisfied or very satisfied with their programs, claiming it contributes to sales, delivers ROI, and is popular among customers.

Top challenges for loyalty program owners

Loyalty program success stories

73. Amazon Prime members spend more than double that of non-member Amazon customers.

74. Walmart+ members spend an average of $79 per online visit, compared to $62 for non-members.

75. Walmart+ members also shopped an average of 11 more times per year (29 visits) compared with non-members (18).

76. Princess Polly drives 4x ROI through their loyalty program.

Loyalty program success statistics

77. Adidas adiClub members buy 50% more often than non-members.

78. Adidas adiClub members’ lifetime value is double that of non-members.

79. American Airlines’ AAdvantage loyalty program is worth over $20 billion—more than triple the valuation of the airline.

Discover proven loyalty program strategies, benefits & 20+ examples

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