All marketers are forever searching for that magical customer engagement recipe that will instantly transform their respective companies into massive retail entities.
While this might not solve all of those problems for marketers, CrowdTwist recently published an illuminating e-book titled, 25 Loyalty and Engagement Stats You Need to Know, which outlines a plethora of key statistics and takeaway recommendations that can help boost revenue, spark customer engagement, and create customer loyalty.
Here’s a sneek peek at the e-book and those very important 25 Loyalty and Engagement stats:
The average number of loyalty programs per U.S. household has grown to 21.9, but only 9.5 of those memberships are currently active.
The takeaway: To keep customers actively participating in your loyalty program, it’s important to engage them with your brand across channels. Think beyond transactions and give people a reason to talk about your products and services.
Share what you are doing and stay connected with customers. Consider offering surveys and sweepstakes with various entry methods, and interacting with people via social media. By broadening your approach to loyalty, you will offer other touch points (and reasons) for customers to
stay in touch with your brand.
32% of shoppers said their loyalty to a favorite retailer has increased over the last year; 23% said it was because of a loyalty program.
The takeaway: Loyalty programs can be a fantastic driver to persuade customers to stay engaged with their favorite brands. If you offer a loyalty program, or are considering developing one, be sure to remember your participants by rewarding their loyalty. If you are running a points-based program, some customers like their transactions working for them so they can receive points that can be redeemed for merchandise or discounts. Being rewarded for participating in activities, such as taking polls, reviewing products, or commenting on posts may appeal to others. Likewise, members may also appreciate general recognition in the form of badges to post on social media for their continued participation.
No matter how you recognize customers, understand what makes sense for your brand to propel customer loyalty.
Members of a loyalty program have a 28% lift in purchase frequency versus non-loyalty program members.
The takeaway: If you aren’t running a loyalty program, it’s something you should consider simply to capitalize on the lift in member purchase frequency versus non-members. Loyalty program customers often have one thing in common—they are all invested in the brands that they admire and value. Offering a loyalty program gives you the opportunity to appeal to loyalists that want to spend more with your brand because they enjoy your products, they believe in your brand, and your company stands for something they want to be associated with.
It’s important to remember that loyalty programs aren’t equal. You must ensure that you offer compelling content and relevant rewards to keep customers coming back. The more engaging your programs are and the more that they offer perceived value, the greater your chances become at enticing customers to interact with your loyalty initiative.
The majority (93%) of U.S. consumers said the type of reward offered is a “very important” or “somewhat important” factor in their decisions to join a loyalty program and to remain engaged with a brand.
The takeaway: Customers want to be rewarded when participating in a loyalty program. And the rewards themselves play a key role in how they perceive the program. To keep members interested in your loyalty offering, develop strategies to differentiate your program. Update your rewards currency often. Consider offering rewards you haven’t before, such as limited edition merchandise, or giving members exclusive access to events.
Not every reward must have a monetary value assigned to it. The key is to give people a choice in what they will receive from your brand and demonstrate perceived value.
More than half (55%) of retailers that have incorporated personalization into their marketing strategies have seen an increase in customer loyalty.
The takeaway: It may seem like a no-brainer, but if you want customers to stay interested in your brand and your loyalty program, it’s crucial to include personalization in your marketing strategy. Whether it’s a cross-sell based on a previous purchase, or a specific offer that’s tailored to a customer’s interests, personalization can move the needle in your loyalty strategy.
Personalization not only increases customer loyalty, but it also drives website traffic, which leads to greater sales. To keep members loyal, find their passion points. Learn what captures your customers’ interests and include those drivers in your marketing materials to remain relevant, meaningful, and engaging.
Six in 10 millennials said they would switch the brands they buy, and two-thirds would change when and where they shop if it meant receiving more benefits.
The takeaway: Discounts are immensely important to millennial. In fact, they will do just about anything—including switch brands—to get an incentive they feel is worth it. This group is extremely cost conscious, but will spend more on items if they know what they are buying will go to a cause that is important to them. It’s essential to meet this generation on its own terms. Consider expanding your offerings so that your program speaks to millennials.
For example, if you have an existing multichannel loyalty program, make an app available for smartphones to appeal to this segment. Find ways to engage younger customers, but don’t over market to them. What’s more, review your program benefits. If your loyalty initiative pales in comparison to that of your competitors, it’s time to up the ante and target this highly sought-after market.