Keeping your pipeline full of new customers is an important part of doing business, but we all know it’s cheaper to retain current customers than to acquire new ones. Loyal customers are a valuable commodity that most businesses should treasure. New research is out that details the loyalty programs consumers want – the results from these studies can help you fine-tune your own loyalty strategies
• Nearly two-thirds of consumers are satisfied with what the loyalty programs provide
• Over 70% of consumers say they are interested in joining more loyalty programs
• 46% of consumers said they want to receive communication from their loyalty programs through at least three channels
• Nearly three-quarters wanted loyalty programs to be mobile friendly
• On average people use their phones for music 13 times per day and for gaming purposes 12 times every day
• Almost three quarters of consumers thought that receiving offers based on purchasing habits was cool, while 24% said it was creepy
• Social media is impacting loyalty programs with younger consumers. Just over half thought it was cool to receive offers after “Liking” a brand on Facebook or following them on twitter. But nearly two-thirds of consumers 16 to 34 liked the idea of rewards for social interaction
What Does This Mean To You?
There are many benefits to loyal customers. Repeat business might be the first one that comes to mind. There is also the fact that a loyal customer is probably less likely to not let the infrequent bad experience deter them from continuing to do business with you. One of the biggest benefits a loyal customer can provide is being an evangelist for your business. Consumers are more likely to pay attention to the opinion of friends & family (even just social media friends). A good review or positive rating can make a world of difference with a prospective customer. Think about your own life. If someone you know tells you a movie is really good, you are more likely to go see it.
Once you can get consumers to join your loyalty programs, your communications options get wider. This access to customers comes with responsibility. You need to make sure the offers you give them are valuable and are targeted. The more you can tie purchase information to loyalty programs the better. Communications that are targeted are less likely to be ignored because they have a perceived value. Consumers know they will receive them and are more likely to open them. With so many shoppers using mobile devices in store – a mobile enabled loyalty program is paramount. This can help you take sales from competitors and create the opportunity for increased sales. For more information on making the most from Loyalty programs, please contact:
Source: Maritz Research