10 Statistics That Prove the Effectiveness of Loyalty Programs
by Grace Miller | April 24, 2018 | Customer Loyalty

The most effective loyalty marketing programs offer fun, easy to understand and desirable rewards systems that help incentivize customers to shop, as well as to become advocates for your brand. So are loyalty programs really worth the effort? Here are just a few recent statistics that show robust loyalty program effectiveness:   

1. People are interested

During a poll conducted in the US in 2016, 60% of individuals surveyed responded that they would be interested in receiving emailed codes for use at checkout. Today’s consumers love finding ways to save. Less than a decade ago, The Great Recession, which lasted from 2007 until 2009, created a customer base that appreciates savings whether they come in the form of deals, coupons, or codes. Furthermore, our internet-driven marketplace has allowed emailed discount codes to become convenient for the new, technology-driven generation.

2. Memberships are growing

A decade long survey from 2006-2016 examined the growth trends of loyalty programs in the US and found that memberships have grown from 3.3 million to 3.8 billion from 2014 to 2016 alone. Despite the recession, loyalty program membership has seen a steady growth.

Loyalty program effectiveness statistics

3. Rewards search

Studies show that 69% of customers allow the presence of rewards or loyalty programs to influence their shopping decisions. Not only are consumers willing to sign up for rewards programs, but many are actively seeking the benefits and perks of customer loyalty. With more than half of consumers looking for rewards, most companies cannot afford not to have a program that offers benefits for customer loyalty.

4. Increased consistency

Current data shows that 58% of consumers shop at stores whose loyalty programs they’ve joined at least once per month. Creating brand loyalty helps create consistently returning customers whether because of potential perks or because increased appreciation for the product.

5. Loyalty expectations

In today’s business world, loyalty incentives are not only sought after but also expected. Based on a survey of Millennial and Generation Z shoppers, 63% will not commit to a brand that does not offer loyalty benefits. Modern consumers know that they have plenty of options when it comes to shopping and are more likely to expect rewards or loyalty programs in exchange for their business.

Reward Structure

6. Returning customers are the best customers

A study from SumAll conducted in 2013 states that the more purchases a customer makes, the higher their chance of returning. Let’s say, for instance, that a customer has made one purchase on your website, the chances of that customer returning are only about 27%. Now, if that customer does return to make a second purchase, the chances of return increase to 45%. After the third purchase, the customer is 54% more likely to return to your website in the future. Loyalty programs help ensure that the customer has a reason to return to your website for future purchases. The more often a customer returns, the more they are likely to continue shopping for your brand or product.

7. Top rewards members tend to show increased spending

An Adobe study from 2012 showed that the top customers are more likely to spend more money. According to the data, 10% of customers spend three times more on any given purchase, and the top 1% of customers spend as much as five times more per order.

8. Targeting big spenders

A study conducted by the Harvard Business School showed that the consumers that are the most likely to spend large amounts of money are also the ones that are most dynamic. High spenders are always on the lookout for better and bigger discounts and rewards, which means that simply having a loyalty program in place isn’t enough. To retain customers, retailers must consistently keep up with their competition and offer superior rewards and service in return for member loyalty.

Loyalty program recruitment

9. New customers are expensive

The most recent statistics show that acquiring a new customer can be five to 25 times more expensive than retaining a client. Many consumers cite the presence of loyalty programs as one of the major reasons that they would consider a given brand. Meanwhile, over half of consumers reported that they will stay with a brand that they like.

10. Importance of values

Recent statistics show that a brand’s values and customer support can be crucial to retaining new customers. For instance, 57% of millennial women consider the values of a given brand before making a purchase, and as many as 47% know the story and founder of their brands. Companies that demonstrate the values of their consumer base are more likely to retain potential customers as part of their loyalty program.

At Annex Cloud, our goal is to optimize your loyalty program effectiveness by creating a program that is well-suited for your business strategy.


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Annex Cloud’s customer marketing platform provides fully integrated Customer Loyalty, Referral Marketing, and User Generated Content solutions that work together to optimize the customer journey and deliver a unified customer experience, a greater quantity and quality of referrals and content, and more high-quality and resilient customer relationships.
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