Did you know that 79% of consumers are more likely to continue doing business with brands because of a loyalty program? (Bond)
Loyalty programs keep your customers engaged for years to come. They turn one-time customers into repeat customers, and repeat customers into brand evangelists. If you don’t have one, or you aren’t investing enough into the one you have, I’m here to tell you that it’s very much a worthwhile endeavor.
But don’t just take my word for it. Here’s eight data-backed things that you need to know about running an effective loyalty program.
Investing in your loyalty program pays off. The first thing you need to know about running an effective loyalty program is that it’s going to pay off. As I’ve already highlighted, loyalty programs keep customers engaged and doing business with your brand. And do you know why that’s important? It’s because 20% of your current customers will generate 80% of your future profits. (CustomerThermometer)
Most customers are willing to join. If you’re worried that people aren’t going to sign up for your loyalty program, don’t be. More than half of loyal customers (52.3% to be specific) are willing to join loyalty programs. (Yotpo) So even if you don’t have one, you can rest assured that your current customers will join once you implement it.
Digital loyalty is taking over. Want more customers to join your loyalty program? Go digital. 79% of consumers are more likely to join programs that aren’t built around a physical membership card. (The Harris Poll) Physical cards get lost. With a digital program, customers have one less thing to worry about.
Less information requested leads to more members. Have you ever gone to sign up for something, taken one look at the sign-up form, and just not even bothered because it was too long? I know I have. And that exact sort of thought process is why your loyalty program sign-up shouldn’t be too exhaustive. 76% of consumers are more likely to join programs that only ask for a name and phone number. (The Harris Poll) Keep it simple. Get more members.
Almost all loyalty programs offer monetary benefits. A report from Gartner found that nearly every single loyalty program they had surveyed offered some form of monetary benefit, including things like cash rewards and product discounts.
People will actively spend more to earn more. There’s a reason rewards are such an important part of loyalty programs. They’re what keeps people spending in the first place. 66% of consumers will modify the amount of money they’re spending on a brand in order to maximize their loyalty benefits. (Bond)
Loyalty programs help you learn about your customers. While the primary purpose of loyalty programs is usually to keep customers engaged, many brands use their programs to gain a better understanding of customer behavior. A study from the Harvard Business Review found that half of companies use their programs to gain insight into customer preferences. Learning from your most loyal customers can ultimately help to improve your brand.
You don’t need an app. Building a digital loyalty program doesn’t mean you have to design a mobile app. In fact, an app may actually be a detriment. 58% of consumers are less likely to join a program that requires one. (The Harris Poll) Yet at the same time, 75% of consumers are willing to engage with programs they can access via their smartphones. (CodeBroker)
So what’s the solution? We’ve got something in mind.
App-Free Loyalty With CoGoBuzz
It’s time to ditch the apps and hole-punch cards with CoGoBuzz, our state-of-the-art digital marketing service.
Powered by advanced WiFi, SMS, and Email solutions, CoGoBuzz comes packed with a completely digital, text-based loyalty program. Our service has a diverse array of features designed to keep your customers engaged, rewarded, and involved. CoGoBuzz simplifies customer engagement down to a simple text message, letting you connect with your customers on the devices they use the most. With CoGoBuzz, you can automate entire campaigns ahead of time. Send automated birthday messages and more!
Have a loyalty program? Tell us about it in the comments!