Customer loyalty programs can be an extremely powerful retention tool when designed and used correctly. Consider these statistics:
- More than half of consumers find rewards “very” or “extremely” important to their purchase decisions.
- Only 8% don’t find rewards important at all.
- The right incentive can make 93% of customers switch brands, even if they were previously loyal to a competitor.
- Up to 75% of customers are more likely to make a repeat purchase after receiving a reward.
Loyalty programs work, but they have to fit the brand. One size does not fit all. A rewards program needs to appeal to a company’s unique customer base, stand out among competitors in the market, and be profitable enough to justify the expense.
That’s why an effective loyalty strategy needs to start with analysis...