Have you ever wondered what drives customer loyalty in today's competitive market? According to Snappy's latest survey, loyalty programs significantly influence customer spending and brand allegiance. With a record 5.5 million new business applications in the U.S. in 2023, it's clear that even the most established brands must innovate to survive. Snappy's study reveals that 70% of consumers consider loyalty programs a key factor in their purchasing decisions, and 72% join these programs before making their first purchase.
Consumers prioritize product quality (67%), price (64%), customer service (51%), and the availability of rewards or loyalty programs (47%) when selecting a company. When quality, price, and service are comparable, effective loyalty programs can drive business success.
What do consumers value the most?
The report pinpoints several critical features that consumers value most in loyalty programs, such as the ability to earn rewards points through purchases and brand interactions, which can be redeemed for discounts or exclusive merchandise. Additionally, consumers highly prioritize receiving exclusive discounts or coupons that are unavailable to non-members, enhancing the perceived value of membership.
Access to exclusive perks such as dedicated customer service, free shipping, or personalized incentives also ranks prominently, demonstrating that consumers seek tangible benefits that enhance their overall experience and incentivize continued loyalty to a brand.
The need for thoughtful strategies
The study finds that 73% of customers view brands more favorably when they receive quality gifts or exclusive merchandise. In addition, an impressive 91% express interest in loyalty programs that allow them to choose a gift as part of their rewards.
Key moments for extra acknowledgment and benefits include birthdays (90%), the holiday season (60%), and anniversaries of first interactions or membership sign-ups (59%).
To re-engage lapsed members, companies can increase reward value (45%), offer unexpected incentives (25%), send gifts (16%), or promote new benefits and offers (13%).
Avoiding common pitfalls
The study also identifies common mistakes in loyalty programs, such as offering unattractive rewards (71%), having a complicated redemption process (71%), providing cheap incentives (68%), and poor communication about the program (39%).
In other news, Snappy has introduced its advancement - an AI Gifting Assistant, taking personalization, convenience, and delight to new heights.
