By Jalluri, Last Updated:
June, 7, 2021
With the growth of businesses in the market, it also becomes crucial for them to grow their customer network. Every sale made needs to make sure that brands are selling the product and are also selling loyalty.
If we compare customer acquisition vs retention costs, we’ll see the inevitable. And that is the fact that customers who are retained cost seven times less than new customers. However, old customers also have a high probability of spending more due to an already established brand image. Even if only 5% of customers are retained, it will still boost the revenue up to 25-95% for the brand.
(SmallBizTrends) (Live Agent)
Research done by SmallBizTrends indicated 92% of customers were willing to give another chance to a business, even after a negative experience. However, 63% of customers would go back to the same place if they received an official apology from the people in charge (supervisor, head office). On the other hand, 52% would give another chance to the business in exchange for discounts. Additionally, 49% of customers preferred having proof of improved customer service from businesses.
(Accenture) (NewsRoom Accenture)
A survey done by Accenture says 48% of customers complain about difficult web page navigation. Thus leading them to pursue a better alternative (another webpage).
This, however, represents a growth of 8% from 2017, where the numbers pointed out to 40% of customers turning to a better alternative. While designing a website, retailers and brands need to make sure their content is accessible and fast loading. It is also essential for the web page to have a minimum loading time for customers with different network strengths. Moreover, customers should be able to find whatever they are looking for easily.
(Accenture) (Access Development)
In a customer loyalty statistics report published by Accenture, customers love to go back to brands that remember what customers prefer. Also, rewarding customers for returning every time they do leads customers to prioritize these brands or retailers. In addition to the above said, almost 100 percent of marketers agreed on the positive impact a personalized shopping experience leaves upon their businesses.
For instance, let’s take the report published by Accenture in 2019, which revealed that 91 percent of customers preferred purchasing from places that recognize and remember their shopping habits and preferences and provide recommendations of their interest.
(Sweor) (Hosting Tribunal) (Inc.)
Just picture this: you have customers who love the web design you have put up. But, suddenly, you noticed these customers bailing from the web just because you haven’t tried hard enough for their e-shopping experience to be smoother. Too many options and infinite dropdown menus and all sorts of categories aren’t always the best way to go, no matter the beautiful design you’ve chosen. In fact, Sweor published a report on Website Statistics, in which it said 38% of consumers wouldn’t go for a poorly designed web or app for that matter.
Furthermore, in the same report, it was also revealed that businesses (their websites) have more or less 0.5 seconds to help visitors form an opinion and just 2.6 seconds for them to find what they like the most about your web. And you might think that your website or the app is good-looking, but it won’t matter if it can’t get the work done. To reduce the customer defection rate, keep your online presence pretty but easy at the same time!
Recent research by Stat Counter (2021) indicates that over 50 percent of all web traffic comes from mobiles nowadays. Therefore, it doesn’t surprise that 84 percent of businesses are shifting their center of attention to their mobile customer experience. Unfortunately, the ones not realizing this is happening face a 90 percent of low and badly driven mobile customers’ share of experiences.
In addition to this, here are the most common reasons that lead to it:
(Sweor) (NewsBreak) (Web FX) (Neil Patel – Loading Time)
It’s not a shocker that customers (more than 45%) in general are drawn to web pages that can load in max. of two seconds fully. If you want them to revisit your webpage, make sure the images used on your website are not very large. Consequently, website statistics from 2020 by Web FX stated a speed increase of just 1 second would bump up the conversion rate by 7 percent. Thus, save your businesses from losing at least 2.6 U.S. billion dollars. Therefore, it is crucial for the website or the app not to be a nuisance for visitors, and maintain the repeat purchase ratio of customers.
(Harvard Business Review) (6River) (Verifi)
A Harvard Business Review study on some 46,000 customers indicated an incredible 23% of omnichannel experience increase. However, worthy of mention is that 73% of consumers tend to use more than one shopping channel. Further results unveiled these digits were based upon recurrent shopping voyages made in six months.
Thus, omnichannel customers will most likely endorse brands to their surroundings and close-by relatives and friends, opposed to single-channel users.
An infographic on customer service statistics published by SmallBizTrends stated 51% of smaller businesses do better when it comes to staff efficiency. In contrast to this, larger companies can ‘brag’ about it with a mere 15 percent, only. In addition to this, small companies are leaving behind the big ones even when talking about the response speed, with 53 percent over 23 percent.
The above-mentioned is enough to tell that being a smaller business owner doesn’t necessarily mean you lack service quality and the other way around.
In a report published by Accenture (2019), 22% of customers admitted the organizations and businesses with whom they interact enabled them to get a custom-made experience based on several personal aspects. This results in customers acknowledging businesses with better understanding and features for them. Nevertheless, if the 33% mentioned above were to be retained and given a personalized experience, that would have meant a notable boost in revenue.
(Martech Advisor) (Invespcro) (Martech Zone)
A report by Martech Advisor on Retention Marketing points out how coming back customers have a 70% higher chance of making another purchase. This behavior includes many factors, among them: product quality, customer service, staff attitude, etc. Further data from the report also indicated that returning customers are willing to spend an extra 33%, compared to newly arrived customers.
(eMarketer) (AnnexCloud) (SmallBizGenius)
In a study done by iVend Retail (2019), the results showed customers keep on coming back when they’re rewarded and appreciated (almost 60%). Besides personalized catalogs, customers also want to have extra benefits for making frequent purchases from one brand or retailer.
In addition to this, here are some more data about what’s most valued among consumers:
Customers will easily sign up for VIP plans or loyalty programs if they love what the brand offers. For instance, Yotpo. is bringing us closer to why businesses should be trying their best for their loyal consumers. Here’s what the latest survey discovered:
In a recent report on customer engagement statistics, salesforce revealed 92% of consumers trust certain brands just because they let them overview and take control of the privacy of their data. Furthermore, 76% of customers said they’re all set for their needs to be met by companies. However, companies aren’t really there just yet. This being said, 51% of them also reported companies aren’t able to reach customers’ expectations.
(SalesForce) (Statista) (Customer Thermometer) (Nextiva)
A great, quick, caring and effective customer service is a must-have for businesses, not an option. However, the amiable and quick-to-react staff isn’t always around customers.
Based on multiple surveys, we’ve compiled some of the most irritating customer services that failed consumers’ needs.
Take a look at the following:
(Business Wire) (Retail Dive)
According to Retail Dive research, 60% of consumers agreed on changing a brand with no hesitation whatsoever in exchange for good coupon deals. Whereas, 48% declared they would be delighted to receive mobile coupons in accordance with their location.
On the other hand, a mere 36% of the overall population would be glad to receive location-based coupons/deals.
This kind of investment in customer retention costs through discounts or other benefits, helps brands increase their customer turnover rates.
These customer loyalty and retention statistics prove that to grow a business rapidly, focusing on new customers is not everything. It is also important to frame a vision that can focus on selling loyalty alongside the product. We have learned that satisfied customers can grow a business overnight, and dissatisfied customers can bring it to the ground.
The customer’s loyalty can be earned by making a plan and combining aspects like omnichannel communication strategies, rewards, discounts, positive behavior, etc.
We hope these customer retention statistics will be of valuable use to your brand.
A somewhat 20% is more or less the average of 8 weeks for the majority of industries. On the other hand, industries such as finance and media reach an average of more than 25%. Whereas eCommerce and SaaS (Software as a Service) has a customer retention rate of more than 35%.
The number one reason for customers walking out on any brand is terrible service, as simple as that. 96 percent (globally) stated that lousy customer service would definitely chase them away for good.
Further data revealed indifference towards a customer plays quite a role. 68 percent would not consider staying after such an indifferent attitude toward them. In addition to all these, 33 percent would also leave any brand with poor or none whatsoever personalization.
All-in-all, these are the top reasons why customers leave brands.
There is almost 15 percent of online shoppers keep on coming back to brands. Hearing about it may seem like a no big deal of a percentage. However, you will be surprised to hear this number makes up for one-third of all the revenue due to shopping. An even more interesting fact is that repeating customers spend three times more than those making just a single purchase.
It is more than evident that a hundred percent customer retention rate is an excellent thing, and a bad one is considered to be one more or less than fifteen percent. Anyway, whatever the retention rate is, it strongly depends on the industry. What may seem to be working for one industry doesn’t necessarily mean it would do wonders to another.
Some common steps can be taken after observing customer engagement statistics: