Loyalty programs have been in place for years but in the last 5 years loyalty programs have soared and became a commodity for every business no matter the industry. A study revealed that 77% of consumers were part of a retail loyalty club in comparison to last year where only 72% of shoppers were part of any retail loyalty program. For the hospitality industry, 46% of travelers were part of a hotel program and 40% were part of an airline program. While a typical family in the U.S. is enrolled in 19-29 different loyalty programs collectively only 5-12 of these programs are used actively.
Connect with Customers on a Personal Level
Loyalty programs not only give customers a sense of appreciation but they also demonstrate that the company cares and understands their needs! Consumers of today want to interact with brands that are setting new standards of customer satisfaction. Whether that means providing a higher level of customer service or more incentives to make a purchase, 74% of brands say they can do so by closely monitoring their customer insights. It was found that more than 79% of consumers are more likely to be loyal to brands who understand their priorities and preferences and share the same values as them. The Givex loyalty program allows users to manage their rewards online and has an administrative portal site for business owners to access program performance and collect valuable customer data.
Collect Useful Personal Data
In an increasingly competitive marketplace, a loyalty program needs to leverage customer data in order to engage customers.
Developing an effective program requires planning what personal information you want to collect from members and how the information will be used to engage/reward. Personal data such as a birthday, anniversary date, or even where a member lives can lead to reward opportunities and member engagement. For example, Marriot Hotels and Resorts surprises loyalty holders with a free Birthday reward in exchange for more information on the holder’s personal profile. Customers are motivated to answer personal questions in return for rewards.
Cost efficient way to leverage customer trends
Reward systems are robust and ever changing and customers expect businesses to change along with current consumer trends. For example, recent studies show that last year, the promise of insider sales and flash deals drove most sales from loyalty holders; however, today, financial rewards tailored to the needs of the customer are much more enticing. These customer trends are important to take into consideration to keep loyalty programs up and running successfully. With Givex however, you have the ability to fully customize loyalty programs and this can be done multiple times a year if needed so you can always take advantage of the latest trends. With four development releases per year new features can easily be added to any program. The possibilities are endless as there are no limitations on how a company chooses to reward its customers! Givex has the APIs and a dedicated integration team to work with any chosen partner to support future success.
In conclusion, it costs 5 times more to attract a new customer than to retain an existing one and make them happy. Building relationships with customers is a long-term project allowing trust to grow resulting in higher conversion rates! Loyal customers tend to spend 67% more than new customers. A lack of trust is a common reason for losing a sale. Get a loyalty program to help enhance the relationship with customers.