The majority of consumers tend to spend more with brands that offer mobile customer loyalty programs. As the U.S. heads into a recession, it’s important to keep this in mind since it is generally less expensive to retain current customers than acquire new ones. As a result, product and marketing teams will be looking for ways to stretch their dollars further and do more with less. This means loyalty programs and retention strategies should be top-priority.
Below are 27 key customer loyalty stats that will help your team have the data to support prioritizing mobile customer loyalty programs in the coming months. In addition, we’ve detailed several ways in which in-app loyalty programs in particular provide unique benefits.
Customer loyalty statistics
- In the U.S., there are 3.3 billion loyalty memberships. (Accenture)
- 90% of companies have some type of customer loyalty program. (Accenture)
- Over 57% of members prefer to interact with their loyalty program on mobile devices. (Airship)
- 79% of consumers say being able to unlock exclusive benefits makes them loyal. (LoyaltyLion)
- When a customer is loyal to a brand, 46% will remain loyal even after a bad experience. (Airship)
- 84% of consumers say they’re more likely to stick with a brand that has a loyalty program. (Accenture)
- The probability of selling to an existing customer is 60-70%. (Altfeld)
- 58.7% of internet users believe earning rewards and loyalty points is one of the most valued aspects of the shopping experience. (eMarketer)
- Customers are 7.5 times more likely to recommend a brand with a loyalty program that achieves high levels of personalization along the member lifecycle, and 6.4 times more likely to modify the amount spent to maximize points. (Airship)
- 87% of Americans are willing to have various details of their activity tracked in exchange for more personalized rewards and brand experiences. (Bond)
- Customers with an emotional relationship with a brand have a 306% higher lifetime value and will recommend the company at a rate of 71%, rather than the average rate of 45%. (Motista)
- Emotionally-connected customers will spend an annual sum of about $699 with a company, versus regular, satisfied customers who will spend an annual sum of only about $275. (Motista)
- 79% of Americans say they are more likely to join a rewards program that doesn’t require them to carry a physical card. (Wilbur)
- 78% of consumers say loyalty programs make them more likely to continue doing business with brands. (Airship)
- 75% of consumers say they would engage more with loyalty programs they can easily access from a smartphone. (Code Broker)
- 57% of consumers spend more on brands to which they are loyal. (Accenture)
- 71% of consumers say loyalty programs are a meaningful part of their brand relationships. (Bond)
- For the average mobile app, 30-day retention falls between 15-20%, and 90-day retention falls between 20-30%. (Appsflyer, Mixpanel, Statista)
- Alchemer Mobile (formerly Apptentive) customers see an average 30-day retention rate of 67%—an increase of more than three times the industry average. (Alchemer Mobile (formerly Apptentive))
- Customers of Alchemer Mobile (formerly Apptentive) also see an average 90-day retention rate of 58%—an increase of double the industry average. If consumers engaged with a Love Dialog in the first 90 days, their average retention rate went up to 79%. (Alchemer Mobile (formerly Apptentive))
If you want industry-specific loyalty data for 2022, download the 2022 Mobile Customer Engagement Benchmark Report.
- Loyalty leaders grow revenues roughly 2.5 times as fast as their industry peers and deliver two to five times the shareholder returns over the next 10 years. (Airship)
- 66% of consumers say the ability to earn rewards changes their spending behavior. (LoyaltyLion)
- 49% of consumers say they’ve spent more after joining a loyalty program. (LoyaltyLion)
- 47% of consumers said they are motivated to be loyal by becoming part of a like-minded community. (LoyaltyLion)
- 81% of Millennials say that being a member of a loyalty program encourages them to spend more with the company. (Airship)
- 71% of Millennials say they are likely to write positive reviews about a brand they are loyal to. (Airship)
- 82% of customers feel more positive about a brand after engaging with personalized content. (Demand Metric)
Why customer loyalty programs work
It’s common knowledge in the retail world that loyalty and reward programs work wonders to keep customers coming back time and time again. If you look at almost any major retailer, you’ll find a reward or loyalty program tied to their growth strategy.
Reward programs work because they:
- Retain and engage customers better
- Save money and resources
- Increase the number of referrals
The benefits of in-app mobile customer loyalty programs
Mobile apps have completely changed the way reward programs work. They’re easier to use, completely customizable, convenient, and overall provide a more robust customer experience. On top of that, mobile phones are constantly attached to your customers, easily accessible at any moment. Brands are just a tap away at all times.
Mobile payments are easier and more convenient
Using a mobile rewards account is so much faster than traditional plastic rewards cards or manually providing an email address at every point of purchase. Most retail apps also offer mobile order and pay, so integrating that experience with loyalty programs is a no-brainer. In combining your loyalty experience with the mobile payment system, you’re removing friction from the buying process and therefore encouraging repeat business.
Gamification adds engagement and interest
Customers can also instantly see their loyalty status or points at any time with mobile reward programs. They can watch these metrics change in real-time, providing instant gratification with each purchase. The gamification of earning points and achieving milestones gets customers to come back to check their status again and again. Adding a bit of competition to your mobile experience will engage customers and drive retention.
With mobile apps, companies also have the flexibility to completely customize the customer experience. They can offer personalized deals, treats on birthdays, and recognition for anniversaries. They can update the visual experience at any time as well, further enhancing that brand recognition and connection. Each one of these quickly customizable components makes for a better, more personal experience with your company. Interacting with customers on a regular basis in a personalized manner builds an emotional connection with the brand. And we all know important emotion is for driving purchase decisions.
In-app experiences allow for feedback collection
Finally, adding a loyalty program into your mobile app will help you acquire valuable data about your customers’ experience. Engaging with rewards members via mobile will help inform your product roadmap. Better understanding how they use your app and consistently gathering feedback will help you continuously iterate and improve your CX. In asking for feedback from loyalty members at the right time and place, you’re showing them that you care about their opinion and give them a platform for their voice to be heard. Since reward members tend to spend more, it’s critical to foster the relationships with this select group of customers. Customer feedback is key to doing this effectively.
All in all, incorporating an in-app loyalty program into your mobile strategy is absolutely imperative for increasing app retention, engaging customers, and driving mobile sales.
Ready to take the next step in improving your mobile customer experience? You can start gathering insightful feedback today with an Alchemer Mobile (formerly Apptentive) demo.