Customer Loyalty Programs: The Statistics You Need to Know
Customer loyalty programs are one of the reasons consumers switch to and/or stick with a particular brand, but sometimes it’s hard to know which aspects of a loyalty program shoppers really want.
We’ve put together a list of compelling statistics that will shed some light on what consumers are thinking and saying about customer loyalty programs these days.
Taken from a variety of sources, this information was compiled by Access. You can find more research findings on their website, including what specific demographic groups think about customer loyalty programs. But you’ll gain some valuable insights on how the general public feels about loyalty programs from the selection of data we’ve posted below:
- 62% of shoppers say loyalty program membership is beneficial
- 31% of American consumers say perks are the most important factor for joining loyalty programs
- 63% of loyalty members think having a wide range of rewards and offers is the most important aspect of a loyalty program
- 75% of consumers say discounted or free products are the most valuable loyalty program benefits
- 70% of members believe loyalty programs are part of their relationship with a company
- 59% of consumers are more likely to join loyalty program that offer a smartphone app
- 73% of consumers believe that loyalty programs are a way for brands to show consumers how loyal they are to them as a customer
- The most important benefits to loyalty program members? Discounts (79%), Cash Back (71%), Rebates (70%)
- 57.4% of consumers join loyalty programs to save money, while 37.5% want to receive rewards
- Loyalty rewards rank above customer reviews (58%) and are almost level with brand reputation (69%) in terms of their influence over consumers’ decision-making process
- 65% of consumers say receiving rewards influences frequency of purchase
- 64% of consumers say loyalty rewards impact the amount they spend
- 33% of consumers say they use their smartphones to sign up for a rewards program after making a purchase on their smartphone
- 17% of loyalty program members say they joined because they love the brand’s products; 31% of loyalty program members say they joined because it was easy to sign up
- The top two reasons consumers continue to participate in a loyalty program are: they’re easy to understand (81%) and the rewards/offers are relevant (75%)
- The top two reasons consumers stop participating in a loyalty program include: they did not provide rewards/offers that were of interest (56%) and it was too hard to earn points for rewards (54%)
While loyalty programs won’t solve all of your customer acquisition and retention concerns, based on the statistics listed above, customer rewards still appear to have a fair amount of influence on consumers.
In today’s competitive retail environment, “It’s simply not enough to just deliver results anymore,” says MarTech, “companies need to exceed expectations.”
According to MarTech, 75% of US companies with loyalty programs generate a positive ROI. So if you’re struggling to gain a competitive edge and increase revenues, a customer loyalty program might be a game changer for you in 2017.