It makes sense. Offer outstanding customer service, and you're guaranteed customers for life. Lifetime customers also mean an increase in referrals, so you definitely understand the importance of customer loyalty.
However, what you may not know is what exactly is outstanding customer service. As in, what makes customers want to stay with your company and what wrong moves could send them running out the door?
These statistics can help fill you in on some realities -- both harsh and relieving -- about your customers and help you maximize your customer loyalty.
27 Interesting Stats about Customer Loyalty You May Not Know
1. 33% of American customers say they'll consider switching companies immediately following a single instance of poor service. (American Express)
2. 60% of American customers say they'll consider switching companies following two to three instances of poor service. (American Express)
3. About 50% of loyal customers have left a company for a competitor who was able to stay more relevant and better satisfy their needs. (InMoment)
4. 81% of customers trust recommendations from family and friends over those from companies. (HubSpot Research)
5. 55% of customers now trust companies less than they used to. (HubSpot Research)
6. Over $62 billion is lost annually by American companies due to poor customer service. (NewVoiceMedia)
7. A 5% increase in customer retention correlates with at least a 25% increase in profit. (Bain & Company)
8. 69% of American customers would spend more on a company with better customer service (American Express)
10. 93% of customers are likely to make repeat purchases with companies who offer excellent customer service. (HubSpot Research)
11. 90% of American customers share their customer service experiences with others. (American Express).
12. Happy American customers will share their positive experiences with and refer about 11 people. (American Express)
13. Angry American customers will share their negative experience with and give anti-referrals to about 15 people. (American Express)
14. 35% of American customers post negative comments about companies on social media, but 53% of American customers post positive comments about companies. (American Express).
15. 82% of customers rate an immediate response (30 minutes or less) as important or very important when they have marketing or sales questions, and that percentage rises to 90% with support questions. (HubSpot Research)
16. 60% of loyal customers will purchase more frequently from their preferred companies. (InMoment)
17. 50% of loyal customers will make more purchases with their preferred companies. (InMoment)
18. 68% of American customers believe a great customer service interaction is fueled by a pleasant experience, while 62% say a knowledgeable experience and only 42% say a quick experience. (American Express).
19. 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)
20. 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)
21. 80% of American customers are satisfied with the customer service currently provided by their businesses (American Express).
22. 26% of customers feel more loyalty to brands, while 21% of customers feel more loyalty to products. (InMoment)
23. 80% of customers gradually gained loyalty for a brand over time, due to experiences with excellent products, service, reviews, advice, etc. (InMoment)
24. 37% of American customers consider themselves to be loyal to a company after at least five purchases. (Yotpo)
25. 52% of American customers will join a loyalty program with a preferred company. (Yotpo)
26. 77% of customers have maintained loyal relationships with their preferred companies for 10 or more years. (InMoment)
27. 90% of American customers believe they are equally as or more loyal than they were to their preferred companies a year ago. (Yotpo)