Are you thinking about introducing a loyalty program to your business? If so, you’re not alone. The global pandemic has seen businesses trying to come up with ways to gain and retain customer trust during this uncertain time.
Adding value has become the buzzword for many companies that were thriving pre-Covid, and they are having to rethink their strategy to get back on track. To do this, they need to know their customers and find ways to offer things that add to their buying experience and make life a little easier.
Now, more than ever, loyalty programs are becoming more than a ‘nice to have’. By offering rewards to those who keep coming back and spending, it’s possible to foster good will and build trust. There are different examples of loyalty programs and if you’re planning on bringing one to your business, it’s worth knowing more about them. Here’s a roundup of some of the stats and facts about these schemes.
Growing in popularity
Figures show more companies are looking to introduce these programs as they are popular among customers.
According to Invesp, 69% of customers say they are influenced by the ability to earn customer loyalty and reward points and choose their retailer with this in mind. In addition, 86% of consumers are more loyal to the brands where they participate in rewards programs, based on research by Citi Group.
Interestingly, 15% of loyalty scheme members currently interact with their loyalty scheme daily, which is a leap of 5% since 2015, suggesting that these programs are doing more to draw customers in. Ahead of this leap, there was already a surge interest in loyalty programs in the US, with membership growing at a rate of almost 27% between 2012 and 2014.
What customers want
So, it’s clear that there is an appetite for loyalty programs among potential customers. But what are they looking for in their scheme?
Half of US consumers say they want to earn rewards for everyday purchases. This tallies with the increase in the number of people interacting with their scheme daily. However, according to Bond, just 22% of loyalty program members are very satisfied with the level of personalization they receive in the programs, so there’s room for current schemes to focus on this and enhance the experience for users.
Why they count
As we navigate this new normal, we need to hold on to loyal customers. When 57% of consumers are willing to spend more on brands that they’re loyal to, 71% say loyalty programs are a meaningful part of their brand relationships, and almost one-fifth (19%) say their program makes them feel special and recognized, we can see that loyal customers are important.
And the programs themselves are important to them. Crucially, 56% of shoppers say they changed or abandoned a purchase when they realized their points had expired. These programs are increasingly becoming part of the everyday shopping experience. By tapping into that, it’s possible to hold on to them and build a trust-based relationship with them.
