By Dean Schwartz (SWAG Master):
Do you know from experience how massive of an incentive programs impact it can have on your business? Creating incentives for employees is important. Trust us. We know the facts. But today we’re going to explore the benefits of incentivizing your customers through customer loyalty programs.
Customer loyalty programs can be a huge win for any business but don’t take our word for it. Check out the data! Invesp put together a useful infographic of studies that outline the importance of customer loyalty programs. Let’s dig into some of the findings.
Make sure you register for our February 1st webinar. It’s free!
10 Facts About Customer Loyalty Programs
#1 The Customer Retention Challenge
One of the biggest obstacles in any business is convincing your customer to return for another purchase. Incentivizing your customer to return will surely help solve this common issue. 61% of retailers cite customer retention as their biggest obstacle.
#2 Loyalty Programs Lead To Repeat Purchases Every Month
When you please your customer with your service and then offer them the ability to earn as they go, you’re more likely to gain some frequent fliers to your business. Repeat purchases are easy money!
58% of all respondents buy from these stores and brands whose loyalty programs they belong to at least once a month.
#3 Repeat Customers Are Worth 10x More
We know it costs more to attract a new customer than it does to simply retain a current one, but did you know how MUCH more? On average, loyal customers are worth 10x as much as their first purchase. When you have an awards program in place, not only will you spend less to attract new customers, but you’ll also earn more over time.
#4 Customer Loyalty Increases Overall Profit
If you read Facts #1-#3 then you’ll have an easy time understanding this one. A simple increase in your customer’s loyalty can result in huge gains for your business through the power of word of mouth and repeat purchases.
5% increase in customer loyalty would increase the average profit per customer by 25-100%.
#5 Customer Loyalty Programs Attract New Customers
Influencing customer behavior is normally a difficult task, but it becomes a lot easier when you incentivize them. 69% of consumers say their choice of retailer is influenced by where they can earn customer loyalty/rewards program points.
#6 Change Customer Behavior
Influencing customer behavior is normally a difficult task. Thankfully, loyalty programs can offer some help. 50% of consumers stated they changed their behavior to reach a higher tier within a loyalty program.
#7 Build Brand Loyalty
We all love free gifts, but incentive programs also strengthen brand loyalty by improving your engagement with customers. When the customer begins to feel a connection with your brand, they’re more likely to continue doing business with you.
83% said loyalty programs make them more likely to continue doing business with certain companies.
#8 People Spend More In Loyalty Programs
Not only will you attract new customers, but your current base will also be purchasing more frequently after joining your loyalty program. 49% of consumers agree they spend more after having joined a loyalty program.
#9 Improve Engagement
With so many choices in today’s world, consumers yearn for a connection with the brands they’re purchasing from. And that connection is more important than ever. A rewards program enables you to build upon that relationship. In addition to updating customers on their reward progress, you may also communicate relevant company information, send promotional updates, or build a database to help you better understand who’s buying your goods/services, etc…
64% of retailers say their loyalty/rewards program is the best way to connect with consumers.
#10 Add The Element of Surprise
Finding new ways to engage with your customers is simply good business. Nearly every company sends a gift around the holidays, but our program will show appreciation to your customers throughout the year, which leaves a much longer lasting impression on the recipient.
67% of customers said surprise gifts are very important for loyalty programs.
How To Start A Customer Loyalty Program For Your Business
The numbers don’t lie. It’s clear that customer loyalty programs are great for business, but how do you go about starting one? SOBO Concepts is here to help! Email us at firstname.lastname@example.org or call 888.752.0432 to get your customer loyalty program setup today.
Also, if you’d like to learn more about either Customer OR Employee Incentive Programs, join our free webinar on February 1st, 2019!