Functionality : Rewards
Overview
Loyalty allows you to collect basket details, act on them and suggest additional items, incentivizing members to take additional actions.
Challenges
Consumers are scrutinizing where and how much they spend.
- Inflation
- Rising acquisition costs
- Shrinking margins
Expected outcomes
Loyalty members spend up to 60% more per transaction.
- More relevant promotions
- Higher spend per order
- Increased CLTV
Overview
Combat rising marketing and customer acquisition costs.
Challenges
Customer acquisition costs have risen 60 – 70% in the past six years.
- Brand trust is at an all-time low
- Most B2C companies lose 60% of their new customers annually
- Recommendations are the highest-ranked source for new purchases
Expected outcomes
Emotional loyalty is the key driver of word-of-mouth and referrals.
- 86% of loyal customers will recommend a brand
- Referrals have a 30% higher conversion rate, 37% higher retention rate and 16% higher lifetime value
- Recommendations are 50X more likely to trigger a purchase
Overview
Recognize and reward profitable behaviors with loyalty.
Challenges
Most brand-to-customer relationships are purely transactional, missing opportunities to:
- Reward other profitable behaviors
- Collect more in-depth data and insights
- Cross-sell, upsell and drive advocacy
Expected outcomes
Turn desired behaviors into habits with an attractive value exchange.
- Gamification can increase sales performance by up to 60%
- Combining less frequent behaviors with frequent increases the likelihood by 50%
- Incentivize referrals, completing profiles and surveys, and more
Overview
Increase customer retention by protecting and focusing on the customers that deliver the lion’s share of your revenue.
Challenges
B2C companies lose 60% of their customers annually.
- Without a loyalty program, only 20% of first-time customers will make a second purchase
- It’s 16X more expensive to bring a new customer up to the same level of an existing loyal customer
Expected outcomes
Proactively retain high-value members and re-engage inactive members.
- Increasing customer retention by 5% can increase profits up to 75%
- Existing customers buy 90% more frequently, spend 60% more per transaction and bring in 23% more total revenue
Overview
A loyalty strategy that drives engagement and repeat transactions without relying on traditional points, instead recognizing and rewarding desired behaviors such as social sharing, reviews, and purchases.
Challenges
- Overcoming liability concerns associated with points-based systems.
- Keeping engagement high without the tangible “currency” of points.
- Encouraging a variety of valuable actions (not just purchases).
Expected outcomes
- Increased engagement and frequency of interaction with the brand.
- Higher average transaction size.
- Enhanced brand affinity through recognition and non-monetary rewards.
Overview
A loyalty program structure that uses tiered benefits to motivate smaller or newer customers to increase their engagement and purchase volume, supporting long-term growth.
Challenges
- Designing meaningful tiers that motivate incremental growth.
- Providing non-transactional benefits (e.g., training, priority support) that add real value.
- Transitioning customers from transactional to emotional loyalty.
Expected outcomes
- Increased customer retention and lifetime value (CLTV).
- Stronger long-term relationships with customers.
- Higher engagement as customers strive to reach higher tiers.
Overview
A B2B-focused loyalty strategy that rewards partners, resellers, or customers for completing training modules, certifications, or educational milestones.
Challenges
- Encouraging participation in training programs.
- Tracking completion and rewarding appropriately.
- Ensuring training translates to improved business outcomes.
Expected outcomes
- Higher training participation rates.
- Better product knowledge and customer satisfaction.
- Stronger, more capable partner and customer networks.
Overview
Collect profile information to learn what motivates your customer, then use loyalty to personalize experiences that’ll drive additional purchases. Annex Cloud’s Loyalty Experience Platform™ allows unlimited attributes and many ways to engage customers.
Challenges
Simply offering discounts cuts margins, devalues your brand and creates customer expectations.
- High early-stage churn
- High acquisition costs
- Shrinking margins
Expected outcomes
Knowing your customers helps you keep them coming back. And loyal customers buy 90% more.
- Reduced churn
- Increased repeat purchase rate
- Increased CLTV
Overview
Using loyalty and the data collected to personalize customers’ experiences and create emotional bonds will increase their lifetime value. In fact, Forbes reports loyalty is proven to increase CLTV by 30% or more.
Challenges
Most brands have a transactional, discount-based relationship that doesn’t maximize growth.
- Low repeat purchase rate
- Infrequent purchases
- Low average order value
Expected outcomes
Loyalty members spend up to 18% more than non-members each year (Accenture).
- Increased purchase frequency
- Increased average order value
- Build lasting emotional bonds