The realm of ecommerce is continuously becoming more competitive while finding customers and retaining them is even more difficult. That is why online retailers are getting creative in how they engage with their customers. Individual shopper profiles, highly specific and targeted ads, creative packaging and loyalty programs are just a few of the ways retailers are providing a more tailored experience to their customers while standing out from the competition.
In this article we will explore 26 key ecommerce customer loyalty statistics that prove that it is absolutely critical in operating a successful online business in 2022.
➡️ About 80% of businesses still rely on email marketing to assist with maintaining their client retention rate
While there is still a place for email marketing in ecommerce today and with an 80% usage among businesses this highlights the need for new, creative and alternative ways to engage with your customers. It can take hours to even days for consumers to respond to an email and many times they end up in the spam folder or simply ignored entirely. Unopened emails are wasted time and marketing revenue for your ecommerce business.
An alternate marketing avenue to explore is SMS ecommerce marketing, SMS is far more effective than email, remarkably cost-effective with great ROI and has a much higher clickthrough rate.
➡️ 82% of companies agree that retention is cheaper than acquisition
If you want a higher ROI, would you rather spend more to try to find new customers or be able to save on excessive marketing by selling to your loyal base? The answer is simple. Customer retention is vital for success especially when the chances of selling to a new customer hover around an abysmal 5-20%.
➡️ 75% of consumers say they favor companies that offer rewards
Loyalty programs that offer incentive are extremely effective in creating repeat customers which in turn increases brand loyalty.
➡️ 65% of a company’s business comes from existing customers
Providing the best customer service and shopping experience possible will help ensure that your customers keep coming back.
➡️ Increasing customer retention 5% boosts profits by 25 to 95%
By just increasing customer retention rates by 5% your online business could experience a boost in profits ranging from 25 to 95% according to RESCI. What could an increase like that do for your business?
➡️ 58% of retailers pursue personalization strategies for customer retention
To provide a more custom experience tailored to each specific shopper many retailers are creating customer profiles. Much like the days gone by when a customer could walk into a store and the salesperson be able to recognize their customer, address them by name, be aware of their individual style and be able to provide a selection based off of this knowledge a customer profile mimics this experience only virtually.
Shoppers want to feel valued for their patronage and like the business they are purchasing from cares beyond the sale. This not only creates brand loyalty, but improves brand trust as well.
➡️ The probability of selling to an existing customer is 60-70%
This fact further drives home the fact that customer retention is essential to success.
➡️ The Pareto Principle shows 80% of your total profits comes from just 20% of customers
80%! That’s a HUGE percentage when you’re looking at your total profits. Keeping your repeat customers satisfied should always be top priority.
➡️ 58.7% of online shoppers believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience
Customers want rewarded for their business as evidenced by this statistic. When customers are incentivized to conduct business with your online store and have a good experience this will further build brand identity and loyalty.
➡️ More than 70% of consumers are more likely to recommend a brand if it has a good loyalty program
Word-of-mouth advertising is indispensable to an ecommerce brand’s identity and reputation. People are far more likely to take and believe the recommendation of a family member or friend than from the business itself.
➡️ 95% of loyalty program users want to engage with their brands program with new and emerging technologies
Customers like engaging with companies in new and ever evolving ways like social media accounts, messengers such as Facebook messenger, TikTok, Instagram, AR/VR technologies and specifically designed smartphone applications.
➡️ 56% of programs employ gamification in their loyalty programs
Gamification when used properly can increase shopper engagement and create a more relaxed loyalty program atmosphere.
➡️ 65% of customers aged 18-34 feel social media platforms are an effective channel for customer service
As previously mentioned, applications like Facebook messenger are considered effective means of communication for customer service and are actually preferred over email.
➡️ 55.3% of consumers stay loyal to a brand because they love the product
Simply put customers value a quality product. When you’re offering quality products and services this statistic takes care of itself.
➡️ Satisfied US customers will share their positive experience with 11 different people
Word-of-mouth advertising – you just cannot beat it. When your business is offering quality products, great customer service and tailored shopping experiences your customers will be much more inclined to tell their friends and family and to share their experiences with others online. User-generated content or UGC is a perfect example of this. Why wouldn’t you want free advertising?!
➡️ 69% of US consumers say customer service is very important when it comes to their loyalty to a brand
This means that if you don’t provide excellent service the first time, it’s highly unlikely that there will be a second time.
➡️ 54% of consumers say they’ve had at least one bad customer service experience in the last month
Unfortunately, negative experiences tend to stick in people’s minds longer than positive ones. When a customer has a bad experience with a business the likelihood of them returning becomes much lower so ensuring that you are providing the best experience possible is paramount.
In fact, according to American Express 78% of customers have given up on a transaction due to bad customer service.
➡️ Revenues for businesses that prioritize customer service rises 4-8% above their market
When prioritizing customer service businesses have found that their revenues increase between 4-8% according to Bain & Company.
➡️ 81% of Americans say businesses are meeting or exceeding their expectations for service
Many Americans say that businesses are meeting or exceeding their expectations for service which means retailers are getting the message that quality customer service is key to retaining their customers.
➡️ 77% of consumers say they have stayed loyal to a specific brand for 10 years or more
When you earn the loyalty of a customer it typically means you have earned their trust and patronage for the long-term as 77% of consumers say they have stayed loyal to a specific brand for 10 years or more.
➡️ 90.02% of US consumers feel equally or more loyal to a brand than they did a year ago
Companies are focusing on customer service and creating unique shopping experiences and it’s generating positive results. If you want to keep your online business relevant you should be doing the same.
➡️ 93% of consumers are more likely to make repeat purchases at companies with excellent customer services
Yet another statistic showcasing the necessity of excellent customer service. Some other ways to improve ecommerce customer loyalty include authentic messaging, learning your customers habits and requesting product feedback.
➡️ More than 50% of Americans have canceled a purchase due to bad service
Bad customer service just leaves a bad taste in your mouth. To avoid lost sales and lost revenue make sure your customer service team is well equipped with the tools necessary to serve your customers. Ecommerce software that links all pertinent information together such as customer profiles, past purchases, customer feedback, item returns, and reasons for the return. This enables your customer service teams to know exactly what is going on when contacted and enables them to provide exceptional service.
➡️ 37% of consumers feel they need at least five purchases to consider themselves loyal to a brand
If 37% of consumers say they have to make at least five purchases to consider themselves loyal to a brand then you are going to have to employ different strategies to boost customer loyalty. A simple strategy would be asking your best customers for feedback as to what keeps them loyal. Using this information look for ways to improve upon it.
➡️ 61% of consumers think surprise gifts and offers are the most important way a brand can interact with them
Everyone likes surprise gifts and offers that are relevant to them. If possible, giving surprise gifts such as a welcome gift or discount offer for a first-time buyer are welcomed by consumers and is a great way to start off on the right foot while fostering brand loyalty.
➡️ 77% of consumers say they favor brands that ask for and accept customer feedback
Customers want to be able to have their concerns or compliments heard. If a shopper knows that a business Is accepting of their feedback, they will be more inclined to shop with them. You can also use this feedback to make improvements on your customer service and shopping experience.
Wrapping it Up
You have all the reasons to facilitate your customers with unique experiences to boost customer loyalty. And with numerous options surrounding customers today, ecommerce brands need to up their game to stay on top of customers’ minds while keeping them from opting for a competitor’s brand.
By emphasizing emotional loyalty, personalization, loyalty programs, and customer experience, businesses can build a solid bond with their customers and inspire them to become brand advocates.
Whether you plan on relying on user-generated content to improve loyalty or are planning on adding one of a variety of loyalty-improving ecommerce tools to the mix, understanding what drives loyalty in the first place is a great step in the right direction.
So, let these statistics on ecommerce customer loyalty inspire you to level up your marketing game and keep your customers coming back for more.
Need Even More Tips?
Take a look at a few related guides we’ve written that can help you better understand customer loyalty and how you can get the numbers to stack up in favor of your brand. After that, have a look at this infographic on ecommerce customer loyalty statistics we’ve created.
Related Guides:
➡️ Use These Strategies to Increase Customers Loyalty the Easy Way
➡️ How to Maximize Use-Generated Content to Improve Customer Loyalty
➡️ How to Improve Ecommerce Customers Loyalty
➡️ 5 Ecommerce Tools You Can Use to Improve Customer Loyalty
