In today’s read, we share the benefits of having a loyalty program. Although it’s a pretty well known fact that having a loyalty program is good for your business, we compiled some really exciting data that shows how much having one can not only save your business time and money, but also be very profitable in the long term.
In an economy wherein competition is very close and populated, it takes more than unique offerings and selling the cheapest product in the market to guarantee market advantage and preference. As consumer behavior continues to evolve— so should a brand’s approach in communicating with its audience.
Buying and selling has gone a long way from just being a purely economic decision. In fact, Gerald Zaltman, a Harvard professor, said that 95% of purchasing decisions are driven by the subconscious mind. Meaning— it’s the emotions that tell us if we want to buy something or not. That being said, building personal relationships and relating to your audience is one of the most important things in your sales and marketing strategies.
Which is why it’s not surprising that brands that make their customers feel important, garner large percentage of repeat purchases and brand loyalty.
Aside from driving purchase decisions, here’s a few more reasons why investing in a loyalty program may be one of the best decisions you can make for your brand:
- Increasing your customer retention by 5% can increase your overall business profit by 125% (Bain and Company)
- Companies which make customer retention as their priority generates 60% higher profits than their competitors (Gartner)
- 37.5% of consumers are more interested in rewards than discounts (Captain Up)
- Loyalty program members spend 5-20% more on your products and services than the non-members (Annex Cloud)
- Customer acquisition is 7x more expensive than customer retention (Incentive Solutions)
- Loyal customers are worth upto 10x as much as their first product or service purchase (White House Office of Consumer Affairs)
- 62% of young consumers note that good brand engagement is key to their brand loyalty (Elite Daily)
- 73% of consumers are most likely to recommend your brand if they belong to your loyalty program (Bond)
- 75% of consumers are bound to make another purchase after receiving an incentive (Wirecard)
- 79% of consumers say that they are most likely to continue buying from a brand if they belong to its loyalty program (Bond)
As a bonus fun fact we wanted to share with you this tip to get ahead of all the brands offering a loyalty program:
According to eMarketer you can outshine any other loyalty program if you can deliver your customers rewards and incentives in one day! Because if there’s anything your customer likes more than rewards— is instant gratification!
We’d love to help you out and make your loyalty program shine above the rest. We’ll also make sure we enable you with that instant gratification technique! Just leave your email below and we’ll get back to you!