The Complete Playbook for Customer Loyalty and Retention

How do customers want to hear from brands? GetResponse says it’s all about email. Nearly 22% of customers prefer to get an email about a loyalty program update or opportunity. Customer loyalty and retention should be top of mind for brands as acquiring new customers is expensive.

How important are loyalty programs to consumers?

AudienceSCAN reports that nearly 15% of U.S. adults use 10 or more loyalty cards. Clearly, consumers want to be rewarded for their loyalty. And they expect brands to measure up.

How should brands communicate with loyal customers?

The latest GetResponse study surveyed brands and consumers and found some discrepancies. Around 20% of brands believe their social announcements create the most loyalty to their programs. Only 15% believe email is a key driver.

But over 50% of people who buy every month prefer to receive newsletters or personalized emails. However, analysts noted differences by age.

Social media is more popular with Gen Zers than with other age groups. This is another signal for ways in which brands can personalize loyalty program outreach.

What do consumers want from loyalty programs?

Over 34% of consumers want product quality when they get involved in a loyalty program. The best customers also want V.I.P. treatment. And why not? These people spend plenty on products and want to be recognized for their commitment.

Your accounts should know that these adults are a dream for revenue generation. They often buy their favorite products, like beauty supplies, on a monthly basis.

Many businesses have been slow to recognize the potential of these customers. Only around 12% of brands have rolled out a VIP program.

What bothers loyalty program members?

Besides considering the best ways to boost customer loyalty and retention, brands should correct what they are doing wrong. For example, people don’t like generic offers. They also aren’t quick to act on promotions that come too frequently. And one way to really aggravate loyal customers is to offer points that expire before they can use them.

Consumers also notice when a different class of customers gets a better deal. At least 67% of those who purchase on a monthly basis think that new customers are treated better. Improved messaging about the value being offered will help. Remind your accounts that these efforts are all about existing customers.

Brand commitment to customer loyalty and retention

There’s a difference between acquiring a customer and retaining one. Around 77% of brands claim that loyalty is important to success. And nearly 35% rate customer retention as a top growth priority, slightly more than customer acquisition.

However, researchers noticed a difference by account size. Around 40% of businesses with more than $50M in revenue reported that customer retention is a top priority.

But businesses with under $5M in revenue have a slightly different focus. Around 33% say acquisition is the top priority, outpacing the 28% that focus on retention. In these cases, you may need to help your accounts balance their messaging between acquisition and retention.

How to improve personalization

Consumers are willing to share their preferences to get these deals. And it’s not just younger consumers who have this mindset. Over 80% of consumers aged 18–55 make this claim.

Personalization requires collecting data about customers. Brands often hold back on this front. But with a little creativity, they can obtain customer data.

Sending a quiz as part of a welcome email is a great way to collect information. Your accounts can use key data points to optimize the outcomes of their loyalty programs. Tracking items purchased and purchase frequency adds to the insight needed to develop a great loyalty program.

AudienceSCAN data shows that 34% of loyalty program members ignore emails from companies when they get too many. That data point points to the need to be cautious about email frequency.

Conclusion

As Richard Weylman, a general sales manager of Rolls-​Royce and Manage Smarter podcast guest, says, consumers are continuously evaluating service providers. Your accounts will want to develop the best customer retention and loyalty programs to stay ahead of the competition.

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