It seems that most businesses offer a loyalty program to their customers; the effectiveness of such a program can go a long way if it’s done right.
The folks at Invesp put out a great infographic that shows the reasons consumers will join a loyalty program and how it will benefit a company in the long run. It’s interesting to note that 57.4% of respondents say that they join a loyalty program to save money, and 69% will choose a retailer based on their loyalty program. That’s some powerful pull!
Another interesting fact: 67% of respondents say that surprise gifts are an important part of loyalty programs. I can personally attest to this one – I joined a gas station loyalty program to save money of course. After a certain level I get three cents off per gallon every time I visit.
I thought things were great when they would offer “flash sales” randomly – I would receive an email notifying me that for the next 24 hours I could get ten cents off per gallon, and sometimes I wouldn’t know before hitting the pump. My kids are truly embarrassed when this happens because I am the crazy lady doing the happy dance at the gas pump. It’s definitely the little things in life!
However, they recently upped the ante, and now I’m a VERY loyal customer. I subscribe to the company’s text messaging and they will send a message when gas prices are about to increase. Fair enough. The last time I went to the gas station, I noticed that my per gallon price dropped well more than a flash sale would, so I had to ask the attendant. I learned that they offer a 24 hour guarantee to card holders; if gas prices increase, the station will honor the last lowest price within the first 24 hours of the price increase. I’m a customer for life!
Once you get the customers to see the value of your loyalty program, the benefits start to roll in. Some of the most noteworthy from the Invesp infographic:
- 83% indicate that consumers will continue to do business when they are loyalty program members
- 49% will spend more once they become loyalty program members
- The average repeat customer will spend 67% more in months 31-36 than they did in the first six months of doing business with a company
It’s easy to see the value of loyalty programs for both the customer and the business; take a look at the full infographic below for some more interesting statistics.