You hear all about customer loyalty strategies, from points-based reward programs to VIP tiers. We’ve witnessed a trend of more and more eCommerce brands focusing on strengthening relationships and affinity with their customers instead of dumping money into acquisition.
So why is customer loyalty important? There are quite a few reasons this is worth your attention, and, more specifically, worth investing in. Loyal customers tend to spend more and shop more frequently - they also bring friends and family into your ecosystem through referrals.
The importance of customer loyalty extends to your decision-making, too. You gain invaluable data through your most loyal customers. Plus, they can provide a sense of predictability in uncertain market conditions. You can always count on them to keep your business afloat.
We’ll dig deeper into some powerful customer retention statistics that illustrate why customer loyalty is important, and we’ll set you up for success in actively improving customer loyalty with some tips on how you can leverage a Shopify loyalty program.
Take the next step with Rivo today!
What is Customer Loyalty?
What exactly are we talking about when referring to customer loyalty? It involves a mix of trust, habit, and emotional connection. Your most loyal customers don’t just buy from you once. They come back again and again because they genuinely love your products and what you stand for.
Customer loyalty means your brand is being chosen even when there are competitors offering similar products, sometimes at a lower price point. This type of loyalty doesn’t happen by accident. It’s earned through consistent, valuable experiences over time.
Brand loyalty can be one of the strongest growth levers when done right, which is why you need to learn how to reward customer loyalty. We’ll help you with that later on. First, why is customer loyalty important?
Why is Customer Loyalty Important?
Loyalty is what separates brands that grow from brands that flatline. You’ll see a few things happen when loyalty is made a priority. Your marketing costs drop, revenue becomes more predictable, and your customer base turns into a community eager to bring more people into it.
You can finally get off the acquisition treadmill and start building momentum with strong customer loyalty. You’ll feel its effects in so many different areas of your business, so let’s break down where exactly it pays off the most. Why is customer loyalty important?
Loyal Customers Spend More and Buy More Often
Repeat customers aren’t just coming back - they spend more when they return. They’ve developed some semblance of trust in your brand, so they’re more likely to upgrade, try new collections, or stock up.
It’s not uncommon for loyal customers to double or triple their average order value (AOV) compared to first-time buyers. There’s no friction involved with selling to them, either. Instead of debating whether to buy or not, they’re deciding what to buy.
It’s Cheaper to Retain Than Acquire
It’s no secret that the customer acquisition journey can be an expensive one from the brand’s perspective. Ads, offers, onboarding, welcome flows - these are just a few of the touchpoints that cost you money.
But retaining a customer is way more affordable. The hard work of bringing them into your ecosystem is already done. They’ve found you, trusted you, and completed a purchase. A well-timed email or relevant offer is all it takes to get them to come back for more.
This is why customer loyalty is important. Not only do returning customers spend more, but you won’t incur many of the same marketing costs you would with the initial acquisition!
Loyal Customers Become Brand Advocates
Now, why is customer loyalty important beyond the financial side of things? At a certain point on the customer loyalty ladder, users shift to become brand advocates. At this point they’re essentially your own organic acquisition channel.
Customers who feel a strong connection to your brand talk about it with others, from friends and family to coworkers and complete strangers. They do this not because you paid them to, but because they genuinely want to share something they believe in.
This kind of advocacy shows up in product reviews, social media posts, word-of-mouth, and referrals, and it carries more weight than any ad ever could. Think of it as having your own network of influencers, but they’re free and don’t need a brief.
Referred customers convert at a higher rate than cold audiences or referral traffic, too, because there is a higher level of trust baked into the recommendation. You can go all in on this loyalty angle by setting up a Shopify referral program.
It Provides Stability in Unpredictable Markets
Loyalty cushions the blow when the market shifts, whether it’s a supply chain hiccup, rising ad costs, or a slower season. Loyal customers are more patient when things go wrong, more forgiving of the occasional delay, and more likely to stick with you through change.
Instead of chasing new customers during a downturn, you’ve already got a base that’s still buying. This kind of stability gives you room to plan, adjust, and grow on your terms. Speaking of planning…
Data From Loyal Customers Helps Brands Make Better Decisions
You learn more the longer someone shops with you - their preferences, timing, and habits are invaluable forms of data that can be used for everything from product development to email flows.
Customer loyalty analytics can be a goldmine for your brand. You can use data to spot trends, test new offers, and understand what really drives behavior. It turns guesswork into confidence.
How Important is Customer Loyalty? Looking at the Numbers
If you’re still not convinced about the importance of customer loyalty, let’s pull up some statistics we’ve gathered. The numbers do a better job illustrating how powerful customer loyalty can be than we ever could. So just how important is customer loyalty?
- It’s 5x more affordable to retain existing customers than acquire new ones.
- You could boost profits as high as 95% with just a 5% improvement to retention.
- A loyalty program could grow your bottom line as much as 25% annually.
- 84% of customers will continue to shop with a brand if it offers a compelling loyalty program.
- 86% of loyal customers say they’ll recommend their favorite brands to others.
These are just a few of the many statistics on customer retention we’ve put together in our more thorough resource if you’d like to learn more. But hopefully, that answers your question on why customer loyalty is important. What now?
Next Steps Now That You Know the Importance of Customer Loyalty
Understanding the importance of customer loyalty is one thing - engraining it into every interaction is another beast entirely. You can’t improve loyalty on hopes and dreams, you need to take action steps to encourage it, starting with a well-strutured program.
Build a Loyalty Program That Rewards the Right Behaviors
Most loyalty programs flop because they focus on the wrong things. Offering points only for purchases misses the bigger picture. There are so many other behaviors worth incentivizing: writing a review, referring a friend, engaging on social, coming back after 30 days, etc.
The goal is to create small incentives that nudge customers toward bigger actions. Keep the program simple, make the rewards feel meaningful, and don’t bury value under layers of fine print.
You can learn more about the different types of customer loyalty programs and find out which is best for your brand. We have a ton of inspiration for you here at Rivo in our case studies, where you can see how leading eCommerce companies are leveraging our program to improve loyalty.
Our platform integrates seamlessly with your Shopify storefront and empowers you to build a personalized loyalty program that generates results. 7,000+ brands use Rivo and they’re seeing as much as a 52x return on investment and a 3.1x repeat purchase rate. If that doesn’t illustrate the importance of customer loyalty, what does?
You get more than 150 features right out of the box and can connect with all the other software in your stack, from email to SMS marketing solutions and many more. Find out what’s possible with Rivo today.
Personalize the Customer Experience at Every Stage
One-size-fits-all experiences don’t cut it anymore. Personalization is everything in fostering brand loyalty. In fact, 60% of customers are more likely to become repeat buyers when they get a personalized experience.
Like we said earlier, your customers are telling you what they want through every click, search, and order. Use that data for loyalty status segmentation and then tailor your emails, offers, and product recommendations to reflect what they care about.
Make Post-Purchase Communication Matter
Too many brands go quiet after the order is placed, and this is a huge missed opportunity. The post-purchase window can be when trust is highest, but it’s also when the likelihood of buyer’s remorse is the highest.
Send a genuine thank you email/SMS and provide tips on how to use the product, how to care for it, what to try next. Follow up in a way that adds value, not noise. You can turn these touchpoints into the start of something long-term.
Train Your Support Team to Build Relationships, Not Just Solve Tickets
96% of customers consider customer service an essential part of what makes them “loyal” to a brand, so you better make support a top priority.
We see tons of brands look at customer service as simply troubleshooting. But it’s often the only one-on-one interaction a customer has with your brand, and it can leave a lasting impression - good or bad.
Make sure your team is reinforcing trust through fast, human responses, empathy that doesn’t feel scripted, and follow-ups that go beyond “problem solved.”
Ask for Feedback and Actually Act on It
You don’t need to guess what’s working, let your customers tell you! This can’t be performative, though. If someone goes out of their way to share an opinion or report a problem, you need to actually do something with it.
Use that insight to improve the experience. Close the loop by letting them know you’ve made changes. Nothing builds loyalty faster than a brand that listens and responds. This makes customers feel like they’re part of the movement rather than just someone who shops with you.
Surprise and Delight Customers with Unexpected Value
Loyalty doesn’t always need a points system. Sometimes, a handwritten note, a small freebie, or early access to a new product is enough to make someone feel remembered.
The best surprises are the ones that feel personal, not mass-produced. These moments don’t scale infinitely, but that’s the whole point. They show customers you’re paying attention, and they make people want to come back just to see what you’ll do next.
Turn Your Best Customers Into Brand Advocates
Part of why customer loyalty is important is because it helps you acquire new customers organically without spending a dime on marketing, all through referrals.
Some customers will refer friends and family on their own, but why not take this a step further and set up your own referral program to actively encourage this behavior? A referral program rewards both the existing customer and the new customer. Everyone wins, including you!
Along with loyalty program management, Rivo can help you set up and manage your own referral program to create your arsenal of brand advocates.
So, take a look at all that our platform has to offer and how we stack up to the alternatives as we wrap up this guide on the importance of customer loyalty:
Final Words on Why Customer Loyalty is Important
So, why is customer loyalty important? From encouraging more frequent, higher spending to lowering acquisition costs, bringing in new customers organically, and guiding better business decisions - the importance of customer loyalty is clear.
But as we close out this conversation on why customer loyalty is important, remember it doesn’t happen by chance. It takes thoughtful systems, relevant rewards, and consistently strong experiences. You can take the next step towards fostering better brand loyalty today at Rivo.
