These statistics demonstrate the importance and effectiveness of having positive relationships with consumers as well as offering programs and rewards that encourage loyalty. The idea that keeping existing customers is far more cost-effective than selling to new customers is also reflected below.
- 69% of consumers in the U.S. claim that customer service is “very important” when they are considering different brands.
- 74% of millennials say they would switch to a different company due to poor customer service, and around 85% of gen X and baby boomer consumers would claim the same.
- Consumers in paid membership loyalty programs are 62% more likely to spend more money on that brand and 59% more likely to choose that brand over competitors.
- Selling to existing customers has a 60-70% success rate while selling to new customers has a success rate of only 5-20% depending on the product.
- A 10% increase in customer retention is significant enough to raise a company’s value by 30%.