January 22, 2021
Keep your brand locked and loaded for 2020 and beyond by taking these stark loyalty marketing trends to heart!
One of the few constants we must face in life is the fact that time flies. Case in point: we’ll be saying goodbye to 2019 in three months. As most brands deal with end of year reviews and annual reports during this period, others are already occupied by plans for the coming year. They’re mostly preoccupied with sitting down and reviewing the accumulated data for this year or checking statistics and trends, so they’re guided as they ideate their winning strategies for 2020.
Speaking of constants, another constant we at the marketing world have to deal with is changing customer behaviours. As we plan ahead, it’s imperative that we dip into our customers’ behaviours and adjust accordingly. To make sure you’re equipped to handle these changing customer temperaments, we collected some of the best loyalty marketing statistics you must keep in mind for the rest of 2019.
Emotional connection. Customers’ lifetime value increases by 306% when they feel emotionally connected to a brand.
Excellent customer service. 93% of customers are more likely to repeat purchases with brands with excellent customer service.
Poor customer service. Over 44% of customers will not finalise a purchase (and choose a different provider) once they’ve experienced poor customer service.
Real-time customer response. 42% of customers will stop supporting a brand if it doesn’t have a real-time customer response line.
Recommendations. 81% of customers still trust the recommendations of their inner circles over those advertised by companies.
Personalisation. 63% of customer expect personalisation as a standard of service. “Special offers” make them feel recognised as an individual and therefore more inclined to support a brand.
Churn rates. Brands can expect to prevent at least 67% of customer churn rates if they resolve a customer’s issue during the first interaction or engagement.
Best ways to engage customers. AP News points that the best way of engaging loyalty program members is through the following:
We want to start this list with a 2016 data from Nielsen that says: “69% of shoppers from Singapore are attracted to loyalty programs”. If we are to believe that optimistic number, then we can only assume that the numbers have doubled since then. The loyalty program industry continues to be a lucrative global phenomenon worthy of brands’ attention. Here to guide your own strategies are some of the most notable statistics about loyalty programs.
Membership plans. A TotalRetail study reveals that people are continuously drawn to loyalty programs. Their study forecasted that around 25% of shoppers are planning to enrol or join a loyalty program next year. Additionally, it is said that 4 out of 5 people are more likely to engage with brands that offer alluring incentives.
Engagement to loyalty programs enroled in. On average, people belong to 14.8 loyalty programs but are only active in 6.7.
Demographic interest. Millennials and Gen Z are highly influenced by and interested in loyalty programs (71% and 65% respectively).
Importance of loyalty programs. Another good success indicator worth looking into is how people view loyalty program. A Bond Insights study determines that 71% of consumers enroled in loyalty programs view it as a meaningful aspect of their overall relationship with a brand.
Personalised rewards. Another study supports our previous article on personalised customer experience. A BRP Consulting report reveals that customers indeed prefer a dose of personalisation, especially on the rewards programs they are enroled in.
Loyalty membership types. 37% of customer loyalty members are willing to pay extra for enhanced tiers of membership. Additionally, there’s a two-fold (1.7x) raise in enjoyment when loyalty programs utilise a gamification system.
Mobile usability and penetration. For 75% of customers, it’s important that rewards are easily accessible and mobile-friendly.
Omni-channel integration. On another recent article about Loyalty Program Trends, we included a portion on omni-channel integration. A Bond study shed into the importance of accessibility and existence in different platforms by laying out these data:
No-no for loyalty program members. According to AP News, Loyalty program members hate it when: