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We’ve all engaged with loyalty programs in one way or another. Whether it’s Starbucks, Sephora, or another one of your favorite brands, loyalty programs help businesses drive sales and build relationships with their customers. A loyalty program is something that will benefit both the customer and the brand, and they’re extremely important in helping brands stand out amongst the ever-growing competition.
Since starting our loyalty program at our in-house eCommerce brand, DermWarehouse, we’ve seen a huge increase in customer retention. With so many other eCommerce skin care sites out there, we knew that our loyalty program was a great way for us to stand out and keep our customers coming back to shop with us.
Learn More: How to Improve eCommerce Customer Service
Loyalty programs are essential for eCommerce businesses, as competition continues to grow more fierce. Obtaining new customers is more difficult and expensive than ever, and holding onto your current customers can be a challenge, when they may find a better deal one click away. Your loyalty program can make your eCommerce business stand out and entice your customers to keep coming back to shop with you.
Don’t take my word for it though. The eCommerce loyalty statistics below will show you just how important it is to implement a great loyalty program in the hopes of retaining customers.
Want to learn more about growing your eCommerce store? Contact our experts at The Media Captain!
eCommerce Loyalty Statistics
- Integrating a loyalty program with your e-commerce platform can increase average order quantity by 319%. [SOURCE]
- 75% of consumers will favor a brand if there is a loyalty program. [SOURCE]
- 57% of consumers spend more on brands to which they are loyal. [SOURCE]
- A 5% increase in customer retention correlates with at least a 25% increase in profit. [SOURCE]
- Customer acquisition cost (CAC) for B2B and B2C companies have risen by almost 50% in the last 5 years. [SOURCE]
- 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with brands. [SOURCE]
- Your chances of selling to a new customer are just between 5% and 20%, whereas that chance rises to 60% or 70% for existing customers. [SOURCE]
- 65% of a company’s business comes from existing customers. [SOURCE]
- 87% of Americans are willing to have various details of their activity tracked in exchange for more personalized rewards and brand experiences. [SOURCE]
- Companies with strong loyalty marketing programs grow revenues 2.5 times faster than their competitors. [SOURCE]
- 63% of Millennial and Gen Z shoppers will not commit to brand that doesn’t have a loyalty program. [SOURCE]
- $1.6 trillion per year is lost by businesses when their customers decide to switch. [SOURCE]
- Bringing in new customers can cost as much as 16 times more than retaining your current clients. [SOURCE]
- 80% of consumers say that they want a personalized experience and are more likely to do business with a company that offers one. [SOURCE]
- In the U.S., there are 3.3 billion loyalty memberships. [SOURCE]
- 47% of Gen-Z would pay to upgrade their loyalty program membership. [SOURCE]
- 71% of Americans are less likely to join a rewards program that collects personal information like address and account information. [SOURCE]
- 81% of traditional loyalty program members would join a premium loyalty program at their favorite retailer, as long as the benefits were valuable. [SOURCE]
- The top categories for which consumers will pay for a premium loyalty membership include: groceries (58%), clothing & accessories (49%), health & beauty (36%), gas (35%) and travel & hospitality (29%). [SOURCE]
- 43% of people spend more money on brands they’re loyal to. [SOURCE]
- Almost 90% of buyers are willing to pay more for improved customer experience. [SOURCE]
- The majority of consumers, 66%, will change their buying behavior to get the most out of loyalty benefits. [SOURCE]
- Out of the consumers surveyed, only 8% say rewards aren’t at all important to their purchase decision [SOURCE]
- Happy Millennials share their positive experiences with 17 people on average. [SOURCE]
- Consumers who engage in high-performing loyalty programs are 78% more likely to pay higher premiums just to stay with a brand. [SOURCE]
Interested in reading more eCommerce statistics?
