A new survey of loyalty schemes shows that British consumers want more from their preferred companies. More precisely, 93% of Brits have signed up for a loyalty programme at some point. 75% stick with the businesses they like and will retain their loyalty membership with a preferred business for over a year.
Despite these encouraging figures, the survey reports that 61% of respondents use only one or two of their loyalty schemes on a regular basis. So should we eschew loyalty programmes altogether and focus on other retention strategies? Let’s not be too hasty about it…After all, loyalty schemes almost always provide actionable data and can boost revenue to a considerable degree. Our own experience points to an average of a 5-10% revenue increase for merchants who implement online loyalty programmes.
So, what can we do to make more shoppers reach for their loyalty cards?
Well, 76% of respondents said that loyalty schemes would be more appealing to them if they offered relevant rewards based on shoppers’ purchase histories. Meanwhile, 59% want to be rewarded for engagement.
If your loyalty scheme rewards customers with products or discounts on specific products, now might be the time to rethink that strategy. Points are a loyalty classic for a reason, and they help retailers to avoid excessive discounting. Even if you do use a points system, it’s worthwhile to consider how you can revamp it with personalisation technology in order to provide the alluring rewards. Tailoring your offers can even help you save on points liability.
When it comes to rewarding engagement, a number of businesses are already picking up on and succeeding with this strategy. Here at Annex Cloud, we call the process of rewarding customers who take advocate marketing actions “advocate loyalty.”
Advocate marketing refers to the process of identifying your potentially and currently engaged customers and giving them the tools to spread the word about you. Advocate marketing actions encompass:
- Connecting with your brand on social
- Writing product reviews
- Asking and answering product questions
- Sharing links, articles, photos, and videos related to your business, whether it’s on social or through another channel
- Hashtagging photos
- Referring friends to your business
- And more!
Annex Cloud has had several clients who started out with traditional, points-for-purchases-only loyalty schemes, and later on transformed their programmes by rewarding advocate marketing.
In one client’s case…
- Total members with points grew by 11.3%
- Revenue from the scheme grew by 370.5%
In the case of another client…
- Total members with points increased by 88.3%
- Revenue from the programme grew by 300.6%
Want to learn more? Check out our white paper, “Advocate Loyalty: A Four-Point Strategy!”