Loyalty Programs

“Stickiness” ~ One of the best ways to keep site visitors coming back is to offer some kind of rewards program points, giveaways, contests ~ and incentives to do business with you.

A loyalty program is a rewards program offered by a company to customers who frequently make purchases. A loyalty program may give a customer advanced access to new products, special sales coupons, or free merchandise.

Why Customers Join Loyalty Programs

Customers join loyalty programs primarily to receive discounts and earn freebies. For the most active users of a customer loyalty program, working “the system” to maximize the rewards received is both a challenge and a source of entertainment.

Some customers also like the exclusivity of being a member of “the club.” Members-only products and services make them feel important and special.

How To Create Loyal Customers

Customer Loyalty Program Research

Because of the pervasiveness of customer loyalty rewards programs in the retail and restaurant industries, there is plenty of research studying every aspect of the programs. Here are some key data that reveal why customer loyalty programs can give retailers a competitive advantage.

73% of loyalty programs members are more likely to recommend brands with loyalty programs they like and use (source: Bond)
Recipients of restaurant loyalty rewards are twice as likely to refer a new customer immediately following a reward redemption (source: Thanx)
77% of smartphone users say they are more brand loyal to companies that send points, surprises, exclusive content, and birthday surprises via their mobile device (source: Vibes)
64% of the affluent middle class belong to a grocery store customer loyalty program to save money (source: Collinson Group)
48% of loyalty program members say they would be willing to pay a membership fee to continue receiving the rewards club benefits (source: Maritz)

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