Loyalty Programs are More Crucial This Year than Ever
This year has tested the bonds of customer loyalty. Consumers all over the country are flocking to the brands and companies they trust the most during the COVID-19 chaos. They’re also questioning which businesses they should cut while trying to save money where they can. If your clients are struggling with retaining customers and gaining new ones, they should take a look at their loyalty program.
Loyalty Programs in the Time of COVID-19
Retaining current customers is the easiest way to earn a steady stream of revenue. A well-designed loyalty program can help with the process. According to Bond’s “The Loyalty Report 2020,” 78% of American consumers say that loyalty programs influence them to continue doing business with a brand. Not only that, 64% are willing to modify the amount of money they spend on a shopping trip in order to maximize the points they will gain through the loyalty program. So, not only do loyalty programs influence repeat purchases, they also positively motivate customers to spend more money.
Bond’s study also found that these programs can also help brands gain new business. 72% of the surveyed consumers are more likely to recommend a brand to others if it has a good loyalty program.
However, your client will only see those results from active members. According to Bond’s study, only about 50% of customers who sign up for a loyalty program are actually active members.
How Your Client can Improve
When it comes to loyalty programs, members primarily care about the experience (76% agree). The top qualities that drive engagement among members are:
- Recognition and Support
- Personal Relevance
- Ease and Enjoyment
- Brand Alignment
Only about 25% of consumers say that they feel special and/or recognized while using their programs. Your clients can make sure they they’re giving their members the experience they deserve by making their programs more personal. One of the best ways to do this is through tailored offers. “Members who receive relevant offers that become more relevant over time are 8x more likely to go out of their way to use them,” reports Bond. Overall, loyalty programs that offer more personalized experiences see a 47% increase in engagement.
According to Bond, the business sectors with the highest member engagement rates are:
Even popular business sectors such as apparel retail and drug stores didn’t make the top five cut. Even if your client operates in a low-engagement sector, they still should look at their loyalty programs. It may be time for a refresh.
Loyalty Card / App Users are highly motivated by the savings that loyalty programs can provide. According to AudienceSCAN on AdMall by SalesFuel, their favorite types of emails to receive from businesses include coupons and discount codes (78.5%) and limited-time offers and sales (59.9%). Email ads such as these influenced 61.6% of these shoppers to take action within the last year. Once your client’s loyalty program is revamped, you’ll want to spread the word. Check out their target audience’s profile on AudienceSCAN to learn the best ways to promote their program.