Lyra Health – Meet A Vendor
June 7, 2023
Having a devoted clientele is of the utmost importance for every brand.
In today’s market, the company’s reputation determines its success. Hence, the following customer retention statistics provide insight into the latest trends in earning clients’ loyalty.
Having loyal customers is like having brand ambassadors.
This will, in turn, increase the customer lifetime value and boost the company’s revenue. Moreover, the work of the salespeople and marketers will be easier, and they can create a trustworthy brand recognized by everyone.
Businesses should create appropriate tactics to build strong and long-lasting relationships. Maintaining long-lasting connections and having a plethora of dedicated clients is even more pivotal than acquiring new ones.
General Customer Retention Statistics
- Companies in the U.S. lose about $136.8 billion of revenue because of poor retention management. (CallMiner, 2020)
- Customer acquisition is six to seven times more expensive than retention. (HubSpot, 2021)
- Only 18% of companies focus on customer retention, whereas 42% focus on acquisition. (SemRush, 2021)
- Enterprises can increase profits from 25% to 95% by increasing their retention rate only by 5%. (MarTech, 2021)
- 33% of businesses will invest in improving customer experience to enhance retention. (Super Office, 2021)
- 89% of companies believe that excellent customer service is a great tool to maintain regulars. (SemRush, 2021)
- Nearly half of clients will stop buying from a business after one bad experience. After more than one bad experience, the number rises to 80%. (Zendesk, 2020)
- Faithful consumers are 23% more likely to spend more on the brand they love. (Gallup, 2020)
- Regulars spend 67% more on average than new customers. (Business, 2021)
- Existing clientele are more likely to try out new products or services. (Beehive, 2020)
Digital Marketing Strategies Statistics
In 2020, the global digital marketing market was worth $305 billion.
Hence, one of the focal points for marketers is digital marketing. Nowadays, there are many different strategies available. These statistics will help you choose the best one for your company.
- Globally, the revenue from content marketing is estimated to be about $66 billion. (Statista, 2021)
- Content marketing has helped raise awareness for 86% of brands. (Content Marketing Institute, 2020)
- 98% of marketers create blog posts, newsletters, and social media messages as part of their content marketing strategies. (Casted, 2022)
- 61% believe that SEO generates the most leads. (HubSpot, 2021)
- 70% of salespeople say that SEO is much better at generating sales. (Databox, 2022)
- Seven out of ten marketing professionals are planning to invest in video marketing. (Marketing Charts, 2021)
- 87% of marketers believe that videos have increased their traffic and helped them generate leads. (Wyzowl, 2021)
- The most used format is short videos, with 31% of marketers already investing in them. (HubSpot, 2021)
- 85.7% of businesses have increased their presence on social media. (Statista, 2021)
- The most used social network for marketing is Facebook (93%), followed by Instagram (78%). (Statista, 2021)
- Email marketing has an average ROI of 4400%. (Optinmonster, 2020)
- 87% of businesses use email marketing to distribute content. (Content Marketing Institute, 2021)
- Affiliate marketing is one of the top three sources of revenue for 31% of publishers. (eMarketer, 2021)
- 56% of affiliate programs saw an increase in revenue during the pandemic. (IAB UK, 2021)
- 34% of marketers plan to invest in influencer marketing as a new strategy. 57% that currently use this strategy state that it is effective, and 46% of them will increase their investment. (HubSpot, 2021)
Customer Retention & Marketing Statistics
- Social media is rapidly growing as a way to reach customer service. In fact, 35% of customers leave negative reviews online after they’ve had a bad experience. (American Express, 2019)
- However, if users are happy with the company, 40% are likely to share that on social media. (Genesys, 2021)
- By using content marketing 63% of B2B marketers earned clients’ loyalty. (Content Marketing Institute, 2020)
- Content marketing helped 47% of businesses to build a subscribed audience. (Content Marketing Institute, 2021)
- 98% of content marketers believe that the most effective channel for keeping customers is social media, and 96% believe it’s email. (Casted, 2022)
- 46% regard video marketing as effective for engagement. (HubSpot, 2021)
- 77% noticed more engagement after using an email marketing strategy. (HubSpot, 2021)
- SEO is regarded as the best strategy to build trust. Hence, 69% of marketers have invested in it. (HubSpot, 2021)
Mobile Customer Retention Statistics
In 2021, 230 billion mobile applications were downloaded worldwide.
This number shows that people spend more time online on their phones. Therefore, having a mobile app for your business is a great strategy to achieve high retention. Here are some mobile customer retention statistics to provide some insight.
- 42% of users spend their online time on mobile devices. (Perficient, 2021)
- 79% have made an online purchase via their smartphone. (Outerbox, 2022)
- The average app has 66% user retention for 30 days. (Appentive, 2021)
- The retention rate for Android apps is down by 16%, unlike for iOS apps which remains steady. (Appsflyer, 2021)
- Developed countries have a 75% higher average 30-day retention rate than developing ones. (Appsflyer, 2021)
- Globally, Japan is in first place with 5.8%, whereas China is last with 1.22% retention for 30 days. (Appsflyer, 2021)
- When it comes to categories, the 30-day retention rate is highest for news apps (10.11%), followed by shopping, finance, and business apps (4-5%). The lowest retention is seen among education, video players, and photography apps. (1-2%). (Appsflyer, 2021)
Brand Loyalty Statistics
There’s been a substantial transformation in customer reality in the post-pandemic world. Since every aspect of our lives is becoming digitalized, it’s never been easier for customers to switch between brands and influence others’ purchasing intentions.
These brand loyalty statistics will show you just how vital loyalty is.
- One-third of consumers worldwide state they are committed to a brand. (Zendesk, 2020)
- In the U.S., over 80% of people feel they have brand loyalty. In Japan, it is around 50%. (Zendesk, 2020)
- Americans and the younger generations exhibit the highest level of commitment, whereas people over 55 have neutral feelings on the topic. (Zendesk, 2020)
- 74% of buyers feel they are faithful to a particular brand. (Zendesk, 2020)
- For 37% of consumers, devotion is created after more than five purchases. (Yotpo, 2020)
- 73% of clientele who switched to other brands say they plan to stay loyal to the new ones. (McKinsey, 2020)
- 52% lean over backward to buy from their favorite business. (Zendesk, 2020)
- 40% would spend on their favorite business even if there are cheaper options. (Yotpo, 2020)
- 60% of those who feel dedicated to a company recommend it to friends and family, thus influencing their purchase intentions. (Yotpo, 2020)
- Price plays an important factor when considering loyalty for 62% of customers. For 57%, customer service plays a significant role, and for 54%, service offerings. (Zendesk, 2020)
- Personalization and promotion are essential for commitment to only 27%. (Zendesk, 2020)
- If a company lies about its performance and efficiency, 31% of Americans will change it for another. (YouGovAmerica, 2021)
Customer Loyalty Statistics
One of the best tools to retain customer loyalty is through loyalty programs. They are very efficient in keeping the existing clientele and attracting new ones. The customer loyalty statistics below will show you how paramount the programs are.
- The average American consumer is part of 16.7 loyalty programs. (Statista, 2022)
- 63% of consumers pay for at least one program. (McKinsey, 2020)
- Loyalty programs make buyers 80% more likely to continue spending on a brand. (Bond Brand Loyalty, 2021)
- 62% spend more since joining a program. (McKinsey, 2020)
- Clients subscribed to a free program are 30% more likely to spend more. (McKinsey, 2020)
- Shoppers are 60% more likely to spend more when they pay for a loyalty program. (McKinsey, 2020)
- Since joining a program, customers are 43% more likely to spend money on the company weekly. (McKinsey, 2020)
- 68% of users modify the amount they spend to maximize the benefits they receive from the program. (Bond Brand Loyalty, 2021)
- 59% are more likely to choose the business over its competitors when part of their loyalty program. (McKinsey, 2020)
- 73% are more likely to recommend companies that have good programs. (Bond Brand Loyalty, 2021)
- 58% of Americans who pay for programs expect to enjoy free shipping and no order minimums. In addition, 39% expect same-day delivery. (Statista, 2022)
- Regarding rewards, 31% of customers think it is too difficult to earn them, whereas 27% don’t think they are valuable. (Loyalty Magazine, 2020)
- The time required to earn rewards for the programs is seen as too long for 45%. (Loyalty Magazine, 2020)
- Membership fees are the top reason why 70% don’t join loyalty programs. (Bolt, 2021)
- 31% would cancel their programs because of expensive fees. (Bolt, 2021)
- Companies that have programs with tiers report a 1.8x greater investment return. (Antavo, 2021)
- 62.1% of businesses report that the programs kept their users engaged during the pandemic. (Antavo, 2021)
Customer Service Statistics
For 96% of customers having good customer service is very important.
Therefore, the service is one of the most important factors when building brand loyalty and creating an excellent experience. Having excellent service often results in high customer lifetime value.
- 80% of consumers count on better service after the pandemic. (Hiver, 2020)
- As little as 19% report that the service they receive goes beyond their expectations. (Gladly, 2021)
- 78% say that customer service is paramount for earning loyalty. (Netomi, 2021)
- One in four buyers will pay 10% more to receive a higher level of service. (Forbes, 2021)
- When making a purchase decision, 66% of clients factor in the customer service’s reputation. (Hiver, 2020)
- 63% think that companies should better listen to feedback. (Qualtrics, 2021)
- 64% didn’t manage to solve their issues through customer service. (Airkit, 2021)
- For more than 60% of clients, friendliness and speed are the valued service characteristics. (Netomi, 2021)
- The preferred way to resolve issues is via phone (66%), followed by email (49%), and then online forms, messaging, and chat (28%). (Zendesk, 2020)
- Only 6% resolve their issues via social media, and only 4% prefer a voice assistant device. (Zendesk, 2020)
- Around 70% of clientele find it annoying when enterprises lack collaboration and transfer their call between departments. (Zendesk, 2020)
- Having to explain the issue repeatedly is why 73% regard the service as dissatisfying. (Gladly, 2021)
- Waiting for a response makes 44% of people frustrated with a company. (Netomi, 2021)
- One in ten buyers wants to get a response within five minutes. (Emplifi, 2022)
- 52% expect to wait no more than one hour to receive a response. (Emplifi, 2022)
- 43% are willing to wait five to ten minutes to speak with an agent. 18.8% would wait even less than five minutes. (Airkit, 2021)
- 90% of salespeople say they communicate with customer service to offer a better experience. (Zendesk, 2020)
Customer Satisfaction Statistics
- If consumers are satisfied with the service, 62% would recommend a business to others. (Gladly, 2021)
- 51% of buyers feel that companies value them and go above and beyond to make them happy. (Hiver, 2022)
- 60% would be more inclined to buy from them if satisfied with the company’s treatment. (Qualtrics, 2021)
- 63% fall in love with a brand when satisfied with the overall experience. (Gladly, 2021)
- 91% are extremely pleased when they feel like the firm listens to them and understands their goal. (Genesys, 2021)
Customer Experience Statistics
- A bad customer experience puts 9.5% of a company’s revenue at risk. (Qualtrics, 2021)
- 80% of people are willing to pay more for a great experience. (Forbes, 2020)
- 61% would pay at least 5% more to receive an excellent experience. (Emplifi, 2022)
- A massive 89% will tell others if they’ve had a bad customer experience. (Hiver, 2022)
- There is a 3.5x higher chance of consumers making a purchase after a positive experience. (Qualtrics, 2021)
- One in six people drop out of a purchase because of a bad experience. (Emplifi, 2022)
- 43% of clients will weigh in their previous experiences when thinking about making a new purchase. (Emplifi, 2022)
- 46% report having a bad customer experience when they get a communication dead end or when there is no option to get to an operator. (Vonage, 2021)
Conclusion
The customer retention statistics above prove that providing exceptional value is crucial to retaining customers.
Whether it is by having excellent customer service, or outstanding loyalty programs, these are the things that make customers loyal to a brand. The business is more likely to deserve its clients’ respect and commitment by adding value.
Caring about its devoted clients through different strategies sets the company apart from the rest.
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— This post is written by
the Shortlister Editorial Team
Time & Attendance Software
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