Don’t just take our work for it!
Here at DCA we’ve seen firsthand the benefit of a great loyalty program and the positive impact it can have on business and customer engagement. But you don’t have to take our word for it. Local and international studies and surveys also give loyalty programs the big thumbs up.
Whether you want to engage your customers, influence how they spend or create some good vibes towards your company, here’s some stats and facts about what loyalty programs can do for you.
Maximise your relationship with loyal customers
We know as a general rule that it’s more expensive to attract new customers than it is to retain existing ones.
More than 80% of people tend to buy more from a company if they are a member of its loyalty program, according to the For Love or Money 2015 report. Given this, it makes good business sense to focus on retaining and building relationships with these customers who already like what you have to offer.
Influence how your customer spends
As well as being able to influence where and when customers purchase, loyalty programs also help you to track and influence their future purchases.
But this influence extends beyond just purchasing. More than 90% of Mississippi State students say they attend more events because they are members of the related rewards program, according to FanMaker. If you can get a customer coming to more events, then there will be a natural impact to the bottom line.
Get inside your customers’ wallets
Wouldn’t it be nice if every time a customer opened their wallet they were reminded of your company? Well, with a traditional loyalty card you can keep your brand front and centre.
Despite our increasingly online world, nearly 70 per cent of loyalty members still like a traditional card, says the For Love or Money 2015 report. This is actually up from 57% in 2014. “Getting the card into the wallet or purse is a critical piece of brand real-estate and connection,” the report says.
Tap into the Millennial market
Younger consumers view loyalty programs as central to brand loyalty and 71% of people aged under 34 believe that brands need a loyalty program to keep their customers loyal, according to the For Love or Money 2015 report.
And if you’re in the restaurant game, Software Advice says that 96% of Millennials use restaurant loyalty programs. They are eating-up the benefits, so to speak!
Millennials are also more likely to seek out companies that offer deals and rewards, reports eMarkerer. Around 70% of smart phone users aged between 18 and 29 offered personal information, such as their location, to businesses to access offers and deals – higher than for any other age group.
Go beyond transactions
Interactions on a digital basis — opening emails, responding to surveys, consuming online content— are all behaviours that help to drive brand affinity. More businesses are also looking to the ‘gamification’ of their programs to drive customer engagement.
In the US, Badgeville reports that its gamification platform was used in the re-launch of the Kendall Jackson winery app, which led to a 65% increase in the frequency of people visiting the app.
Driving this type of customer engagement, even if it doesn’t result in a direct transaction, is still a vital building block to building brand affinity.
Make the ‘feel good’ vibes count
You know you’ve reached loyalty success when one of the key reasons that your customers shop with you is simply because they ‘feel good’ about spending with you.
Loyalty leaders across a wide range of industries have a net promoter score (NPS) that is on average 20 points higher than the rest their industry, according to a Bain&Co report that surveyed 9,000 Australian consumers. And across most industries, companies with higher NPS’ experience a positive impact on a customer’s lifetime value.
Meanwhile, around 77% of smartphone users said mobile offers, such as surprise points or rewards, exclusive content and special birthday messages, have a positive or very positive impact on their brand loyalty, according to mobile marketer Vibes.
But it doesn’t always have to be about points or discounts. Companies are finding many ways to boost the feel good factor and positive brand association. It might be a café offering free Wi-Fi or a small biscuit with a coffee. A retailer might offer a loyalty member free shipping and a health fund access to health and fitness information.
These are just some of the facts and stats from across the world that stack-up to make a good case for implementing a targeted and tailored loyalty program.