Marketers are planning big adjustments to their advertising budgets in 2017. As companies shift more and more focus to their customers, eMarketer reports loyalty programs will reap the benefits of budgetary changes next year.
According to a survey of 234 digital marketers conducted by CrowdTwist, more than half of respondents revealed they plan to increase their investment in their loyalty programs. In fact, 44% said they will somewhat increase their spending while 13% plan to significantly invest in them. Also of note is that only 4% of respondents said they plan to decrease spending on these programs.
These numbers reveal that marketers are indeed realizing the importance of taking care of their customers and fostering long-term loyalty. But now the question remains, what areas of loyalty programs warrant your clients' extra spending?
Two related surveys were conducted in 2015 (one by Martiz Motivation Solutions and one by Colloquy), which delved into why consumers join and continue to participate in loyalty programs. Responses from the MMS survey revealed the desire to earn rewards (43%) and a low effort to sign up (31%) were top drivers of earning new members, while reasons such as loving the brand’s product and sharing brand values had minimal impact.
The Colloquy survey investigated why members continue to participate in loyalty programs and uncovered 81% of respondents remained active due to the ease of understanding the loyalty program, while 75% stated earning RELEVANT rewards and offers motivated them to stay active.
If your clients are planning to invest more dollars into their customer loyalty programs, help them determine the factors that will be worth the most bang for their buck. The easier and simpler their programs are to use and sign up for will ensure customer enrollment stays high, but the rewards and offers those customers earn will be their biggest motivator to give your clients their loyalty.
And now that you've helped your clients enhance their customer loyalty efforts, take a note out of THEIR playbook. You too should be focused on increasing your own customer loyalty. What changes can you implement to demonstrate to your clients you care about their success? A little investment could go a long way for your bottom line.