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Customer Loyalty Statistics: Know your Customers Better Than They Know Themselves

Customer retention, upselling and cross-selling relies on good data management – and the customer loyalty statistics in the infographic below explain just why.

In order to build a meaningful, loyalty relationship with your customers, you need to know who they are. In order to know who they are, you must have use powerful Customer Master Data Management Software.

Featured Content - Customer Loyalty Statistics Infographic

Learn more about our Master Data Management Software, the Semarchy Unified Data Platform.

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How to Know your Customers Better Than They Know Themselves

A Zappos employee once sent flowers to an ailing woman who couldn’t find comfortable shoes-that kind of intimate attention might be why 75% of Zappos sales are from repeat customers

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The Elusive Loyal Customer Value of Repeat Business

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  • 5% increase in customer retention
  • 25% increase in profit
  • Average online apparel retailer doesn’t make a profit off a customer until he or she had shopped 4 times
  • Must retain customer for 12 months just to break even
  • Longer the customer’s relationship with the company, the more they spend
  • Customers spend 67% more in months 31-36 than in months 0-6
    • 5th purchase: 40% larger than 1st
    • 10th purchase: 80% larger than 1st


  • Repeat customers refer more people than one-time buyers
  • Apparel: 3 referrals after 1st purchase, 7 referrals after 10th purchase
  • Electronics and appliances: 4 referrals after 1st purchase, 13 referrals after 10th purchase
  • Over 3 years, referred customers spent an additional 75% of what the original customer spent at online grocers
  • 50% in electronics and apparel

Consumers Don’t Often Come Back

What would make you “break up” with a brand?

  • 57% Negative review remains unaddressed while similar products continue to be offered
  • 53% Data leak/breach
  • 42% No live/real-time customer service support
  • 38% No timely sales and promotions offers

Millennials’ special brand of loyalty

Brands with highest customer scores among Millennials

YouTube = 72%

Facebook = 72%

Google = 70% = 60%

64% of Millennials are as brand loyal as or more brand-loyal than their parents

It’s important to keep customers coming back-but old school loyalty cards don’t do the trick anymore

Know Your Customers to Gain Their Loyalty

Traditional Methods Don’t Work

Loyalty programs run rampant

  • 90% of companies have customer engagement or loyalty programs
  • 2012-2014 loyalty program memberships grew 26.7%
  • 3.3 billion loyalty program memberships that’s 29 per household in the US

Generalized incentives aren’t enough

  • 71% Claim loyalty programs do not improve loyalty
  • 61% Switched their business from one brand to another last year
  • 77% Retract loyalty more quickly now than they did 3 years ago
  • 23% Have a negative or non-existent reaction to loyalty efforts

Need Personalized Experiences

Customers expect you to know them

79% want brands that understand and care about “me”

56% are loyal to brands

“I’m Special!”

Customers assume you have data on:

  • Personal information they provided in the past
  • that deeply understand their priorities and preferences
  • Previous transactions, searches, and interests
  • Previous questions and complaints

Knowing customers pays off


Encourage buying additional features or upgrading to more expensive models

In 2014, JetBlue made $190 million from “Even More Space” initiative, allowing passengers to buy seats with more legroom


Encourage adding similar items to a purchase

35% of Amazon’s revenue comes from “Frequently Bought Together” and “Customers Who Bought This Item Also Bought” features

Customers want you to know everything-but it’s hard keeping track of massive amounts of data without some help

Improve Your Customer Knowledge

Master Data Management

Master database system that organizes and shares huge amounts of data on every aspect of an enterprise company

MDM-organized information:

  • Customer purchase history, contact information
  • Product inventory, pricing
  • Physical assets, properties, vehicles

Reasons driving MDM implementation

45% Improve business agility

39% Improve business outcomes

37% Create internal/operational efficiencies

33% Improve customer relations/service

Benefits of MDM

Quality data means better, faster, more timely decisions

  • Brings together information stored in different databases, spreadsheets, and branches
  • Recognizes patterns that lead to timely sales
    • eg. A bank offers mortgage loans when data indicates a customer is thinking of buying a home
  • Makes purchase history and customer information readily available so customers feel cared for

Mastering customer data leads to success in B2C, B2B, and mobile commerce -xDM from Semarchy can be the key to knowing your customers