11 Good, Not So Good and Bad Customer Loyalty Program Stats That Will Surprise You
Here at Swipii, we just can’t get enough of customer loyalty, data and insights. It’s what we live for! But here’s the thing: Customer loyalty is so much more than a stamp card and an impromptu discount just because the store manager is in a good mood. A strong customer loyalty program can bring in tens of thousands of pounds in additional revenue for your business each year.
And we have the data to back that up.
So here are 12 facts on customer loyalty that may take you by surprise:
More than 90% of companies currently employ some form of customer engagement or loyalty program.
67% of businesses use a loyalty program for customer retention purposes.
54% of 18-34 year olds say that giving them the opportunity to “personalise products I buy, to create something unique to me” influences their overall feeling of loyalty toward a brand or company.
An email address is deemed the most valuable piece of customer data by businesses when signing a consumer up to their loyalty program (81%).
The Not So Good
Only 27% of independent retailers have their own loyalty program for their customers, and among those without a customised loyalty solution, 47% want to have one but lack the resources or expertise.
81% percent of companies face challenges related to their loyalty program. The two biggest challenges related to loyalty programs are not enough customers signing up and poor contact data.
55% of Millennials think companies, retailers and brands that don’t communicate through digital or mobile channels are outdated.
Only 53% of companies are focused on customer loyalty personalisation.
49% of millennials stopped using a loyalty program after receiving irrelevant communications.
Only 19% of customers think independent retailers send them special offers to bring them back after a visit.
85% of loyalty program members haven’t heard from a company since they signed up.
So, what do the stats tell us?
Well, it’s pretty clear that loyalty programs are a great way to cement the relationship between businesses and their customers.
Data collection is at the heart of a successful loyalty program for both parties.
For most businesses, the data collection part is fairly easy but they’re not sure what to do with any information that they collect.
Consumers know how valuable their data is to businesses and if they provide you with their data, they expect something valuable in return.
When the consumer’s expectation of what they should be provided with, in return for their data is not met eg. no personalized emails, offers or discounts, they become disengaged with the loyalty system. And, of course, if your customers are disengaged with your loyalty program, then the system can become redundant.
Swipii helps businesses by helping businesses to learn about their customers’ behaviours in a secure and engaging way. We give businesses the opportunity to not only create awesome loyalty programs but also build Deals, get verified ratings and find new customers.
The Swipii system helps businesses to increase repeat customer visits and can also increase repeat spend per visit.
If you want to learn more about Swipii and see if it is a good fit for your business, click here to chat with us online now!
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