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Why Loyalty is Better Than More Customers

Photo by Goran Ivos on Unsplash

Loyalty is a powerful thing, and something that needs to be designed. Learn about the benefits of loyalty instead of trying to get more and more people who aren’t loyal.

September 24, 2019 13:29


In this reading, we list examples of statistics for loyal customers (audience) over new sales or focusing on just sales. A lot of things go into building loyalty which we will keep expanding on. However, here are some of the things you can expect from loyalty.

First, it is important to know I am not talking about loyalty programs or anything like that. I am talking about someone who is being loyal to a brand. In the photo above, people are loyal to Starbucks for their coffee. Some people are loyal to Apple for their computing needs. The camera industry shows lots of loyalty. I am loyal to Canon for my reasons and some people are only loyal to Sony or Nikon.

-The most loyal 50 percent of customers would pay a 25 percent premium before switching brands
-Loyal customers spend 33 percent more than new customers.
-The probability of selling to a new customer is only 5 to 20 percent. However, an existing customer is 60 to 70 percent.
-Customers who have an emotional connection to a company are 4 times as likely to do business with it.
-In many categories, the most loyal 10 percent of customers generate 50 percent of the revenue.
-In some sectors, a 2 percent increase in loyalty in equivalent to a 10 percent cost reduction.
-A 5 percent increase in customer retention can mean a 30 percent increase in profits.
-A 5 percent increase in loyalty can mean a 95 percent increase in profits over a customer’s lifetime.

Mary Neumeier - The Brand Flip

There is power in loyalty.



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