Best Customer Behavior, Loyalty Marketing & Loyalty Statistics for 2022 and Beyond
- Posted on March 31, 2022 by Robert
- Reading time about 11 minutes
A loyalty program is becoming a need for organizations in every industry sector as it acts as a great way to keep brands connected with customers for a long time. We have witnessed a tremendous rise in customer loyalty solutions over the years. The recent research by MarketsandMarkets states that the global loyalty management market size will grow from USD 8.6 billion in 2021 to USD 18.2 billion by 2026, companies must be aware of these numbers. In this blog, we will take a deep dive into loyalty statistics and benchmarks to help you stay aware of all the trending loyalty metrics that will shape customer loyalty management solutions in the coming years.
15 Customer Behavior Stats for Better Understanding of Purchase Decisions
With the evolution of eCommerce, we have witnessed a huge change in customer behavior, which is not just restricted to Millenials and Gen Z that are constantly on their smartphones. More & more mature age groups now prefer online shopping and their purchase decisions are highly impacted by social media. To make your company stay aware of all the trends & understand customer demands, here are some of the top stats to ensure growth-
1. Research by Forrester says online shopping is expected to grow to 27% of overall retail sales by the year 2023.
2. More than 50% of B2C e-commerce sales flow through marketplaces today, says another study conducted by Forrester.
3. About 80% of customers will see the world as all digital, with no division, as stated by Forrester.
4. Loyalty360 states that 70% of customers want to know how the brands they are associated with address social & environmental issues. Companies are adding corporate social responsibility to their loyalty programs.
5. 37% of millennials believe that they would stop buying from a brand if it is not aligned with values, says the research by McKinsey.
6. Another research by McKinsey says more than 60% across all generations want brands to take action on societal issues.
7. Social media like TikTok & YouTube is leading in terms of influencing forces where 39% indicated their purchase decisions are swayed by social media, 24% by point of sale, and only 14% by friends and family, as stated by McKinsey.
8. The study by Bloomreach states that 77% of e-Commerce decision-makers believe that digital commerce is likely to become the most important sales channel within 1-3 years.
9. Though click and collect are rising, physical stores are still the primary point of purchase with about 75% of customers who prefer it and 5% through click and collect, as stated by McKinsey.
10. Capgemini says that 54% of customers have AI-based interactions with organizations daily, using chatbots, digital assistants, facial recognition, and biometric scanners. Three-quarters of them fall within the 18-35 age category.
11. BCG states that 19.5% of total global retail sales are made through e-commerce.
12. McKinsey states that with the rise of virtual games, 65% of Gen Z customers have spent money on the purchase of a virtual item that enhances their playing experience in a video game.
13. Data privacy still plays a very important role. 72% of North American customers would stop buying from a company or using their services because of privacy concerns, as stated by BCG.
14. 32% purchased during or immediately after an online live stream shopping session according to the study by BCG.
15. Another research by Acxiom says 29% of the 65 to 74 years old age group and 34% of the 55 to 64 years old age group buy household supplies online every few months.
Significance of Data through Company Side Statistics
Customer data plays the main role if you want your business to succeed and gain a competitive advantage. With the rise of more privacy laws and the decrease in the use of third-party cookies, businesses need to reimagine their data strategy and invest in stronger systems to embrace the power of data. Loyalty programs play a leading role in collecting data by encouraging and rewarding customers to share information with the brand. These data are later analyzed to extract insights for the creation of customer segments and plan personalization strategy.
1. 78% of marketers believe that customer engagement is data-driven. (Salesforce)
2. 57% of companies in Asia-Pacific say they are not effectively leveraging first-party data. (BCG)
3. Only 30% of companies are creating a single customer view across channels. (BCG)
4. 51% of successful brands are deploying first-party data in delivering personalized content via dynamic creative optimization while 49% use this data to serve leads to users via programmatic media. (Deloitte)
5. 75% of the surveyed global executives said they will invest more in delivering hybrid experiences over the next 12 months. (Deloitte)
6. 43% of surveyed executives are investing in hybrid experiences to increase personalization and make their offering more innovative; 38% plan to offer more inclusive experiences. (Deloitte)
7. 34% of companies generally treat customers as unique individuals. (Salesforce)
8. 80% of marketers say customer experience is a key competitive differentiator. (Salesforce)
9. 72% of marketers say meeting customer expectations is more difficult than it was a year ago. (Salesforce)
10. By 2026, 60% of large enterprises will use the total experience to transform their business models to achieve world-class customer and employee advocacy levels. (Gartner)
11. 70% of marketers are likely to adopt an “always-on” digital engagement strategy in 2022 as persistent digital engagement will become the norm. (Forrester)
12. Martech’s spce of the marketing budget will increase to 25% in 2022. (Forrester)
13. 88% of CMOs plan to invest in first-party data capture and management in 2022. (BCG)
14. By 2025, 20% of B2C revenue will be generated from recurring revenue models, causing profound shifts in marketing strategies, spending, and channels (Gartner)
15. 63% of digital marketing leaders surveyed still report that leveraging integrated customer data for digital marketing execution presents a major challenge. (Gartner)
16. About 60% of US retail sales will be digitally impacted/influenced by 2023. (BCG)
17. The intelligent virtual assistant market size is expected to record a 37% CAGR from 2020 to 2027. (BCG)
18. 61% of high-growth companies are shifting to a first-party data strategy. (Deloitte)
19. 78% of high performers say they use a customer data platform (CDP). (Salesforce)
20. More than 90% of advanced customer data organizations agree that their customer data integration efforts have resulted in a measurable positive ROI. (Gartner)
Loyalty Statistics to Know What Keeps Customers Loyal
With the increase in digital transformation, businesses today need to be aware of all the changing customer expectations if they wish to foster loyalty to their brands. Loyal customers are the ones that keep coming back and tend to have higher purchase frequency increasing overall revenue with more customer lifetime value. After gaining trust from customers towards your brand, these customers are more likely to choose you over your competitors as they believe that you have provided the best quality services and excellent customer experience from the beginning.
1. 82% of customers say that they will continually buy from a brand they trust, even over brands that become trendy at the moment. (Klaviyo)
2. Social proof cues are also important to customers, with nearly 30% being more likely to purchase if the online store shows product ratings and reviews from other customers. (Fresh Relevance)
3. Price is key to customers, with 44% saying they stay loyal to brands that offer great value for money. (Fresh Relevance)
4. Nearly a third of loyal customers, aged 16-24, want online retailers to make it easy for them to discover more products they might like.(Fresh Relevance)
5. For 80% of customers, seamless experiences across channels, and product availability wherever they shop, are highly important. (McKinsey)
6. 42% of customers say they prefer shopping from brands they have previously shopped with but would switch to a different brand depending on the circumstances. 22% would never switch. (Fresh Relevance)
7. 40% of shoppers would switch brands if a new brand is offering a better price; 35% because they wanted to try something new and 20% if the new brand was recommended by family and friends. (Fresh Relevance)
8. 79% of buyers would change suppliers/retailers if they had a poor experience; almost 80% are likely to tell others through word-of-mouth and 53% of buyers are likely to tell others through online ratings and reviews. (Bloomreach)
9. 34% of customers want online retailers to highlight spending thresholds that unlock an incentive such as free or next-day delivery. (Fresh Relevance)
10. 78% of customers globally admire companies that take action to reduce their impact on climate change. (BCG)
11. Price and quality were individually cited as top-three purchasing criteria anywhere between 61% and 86% of the time according to customers surveyed globally. (Deloitte)
12. 57% indicated that, in general, they are more loyal to brands that commit to addressing social inequities. (Deloitte)
13. 90% of Gen Z says they are more willing to purchase products that they deem beneficial to society. (Deloitte)
14. 80% of customers place the same emphasis on flawless engagement as they do on product quality. (Salesforce)
15. 99% of customers believe companies need to improve their trustworthiness. (Salesforce)
16. 30% – that is how high the customer churn rate can be in some global markets. (Deloitte)
17. 83% of customers expect flexible shipping and fulfillment options such as buy-online-pick-up-in-store. (Salesforce)
18. 62% of customers say their experiences with one industry influence their expectations in others. (Salesforce)
19. Product experience and interaction experience, which have the biggest impact on customer loyalty, account for over 36% and 30.4% change in customer loyalty, respectively. (Gartner)
20. 46% of respondents think that reality is key to brand loyalty. (PwC)
Marketing Statistics to Help in Acquiring & Retaining Customers
Loyalty marketing can be termed successful only when your brand can put customer insights into relevant actions. The right loyalty marketing approach is a must to attain a high engagement rate. Also, ensure you make your loyalty program aligned with the company’s strategies if you want to attain business goals. Some of the best ways of marketing efforts are to use email marketing, SMS marketing, streaming, etc.
1. 66.4% said that when it comes to their company’s overall strategic decisions, customer loyalty and loyalty marketing have an important impact. (Antavo)
2. 48% of baby boomers want control over the type and frequency of marketing emails they receive. (Fresh Relevance)
3. Email marketing is a crucial channel within your cross-channel marketing flows, with an estimated average ROI of 400%. (Mapp Digital)
4. SMS marketing is gaining importance; 75% of customers say they’re open to receiving texts from brands they care about. (Klaviyo)
5. 85% of Americans say they’ve been texted by a brand recently. Of those, 65% say they usually feel secure interacting with them via SMS. (Klaviyo)
Email marketing is not only marketers’ most-used vehicle—88% of companies employ it—but it has one of the highest returns on investment, generating an average of $38 for every $1 spent, whether that’s by getting members to redeem their points, making them aware of new benefits, highlighting partners, or acknowledging recent activity. (McKinsey)
7. Personalized A/B testing elements such as email tone and language, timing, and imagery can increase conversion and click-through rates by 15 to 30%. (McKinsey)
8. 37% of respondents identified email as the most effective way for improving customer loyalty and retention. (dotdigital)
9. 63% of millennials are willing to share personal data to get personalized offers and discounts. (BCG)
10. 76% of customers prefer different channels depending on context. (Salesforce)
11. Mobile messaging, for instance, is used by 69% of marketers, and nearly two-thirds of organizations use audio media like podcasts and streaming ads. (Salesforce)
12. 90% of marketers say their digital engagement strategy has changed since before the pandemic, and 89% say their marketing channel mix has changed. (Salesforce)
13. 78% of marketers say they engage customers in real-time across one or more marketing channels. (Salesforce)
14. 84% of marketers say they adopt marketing strategies and tactics based on customer interactions. (Salesforce)
15. 33% of marketers are planning to use user-generated content, and 27% influencer marketing. (Salesforce)
16. 73% of marketers already use Livestream video, and 57% use virtual customer communities. (Salesforce)
17. Brands are investing 72.2% of their marketing budgets across digital channels (Gartner)
18. Email marketing adoption is nearly universal, as 94% of respondents currently use an email marketing platform. (Gartner)
19. 64% of marketing leaders plan to increase email marketing investments. (Gartner)
20. 43% of marketers outsourced email marketing as part of a response to 2020’s disruptive events and 41% of marketers plan to outsource email marketing to an external partner to better respond to future disruptions. (Gartner)
Hopefully, you must have got an idea about the most trending customer loyalty, marketing & program statistics for the year 2022 and beyond. As you are aware of all the metrics that support your loyalty program approach, your business must ensure that you put focus on customer experience, personalization through data and emotional loyalty to build stronger customer bonds. What are you waiting for? Connect with our expert team to know more about the launch of a new loyalty program or revamp of an old one.