See how you can reap the rewards of incorporating world-class loyalty solutions into your consumer journeys!
Delivering customer loyalty is non-negotiable, and there is more competition than ever. Consumer expectations have soared, and businesses that aren’t focusing on customer retention are failing to optimize free traffic and referrals with higher conversion possibilities. This results in billions of dollars of yearly losses in the US alone. What’s that old adage… “a bird in hand is worth 2 in the bush?”
The below summarizes some of today’s most eye-opening loyalty program statistics to consider. Does your customer loyalty program meet these standards?
Why should businesses consider loyalty programs?
The technical age has born a new kind of consumer, making shopping more accessible and more varied than ever! In this competitive market, businesses must do more to both attract and retain customers. This has given way to a rise in specialist loyalty solutions designed to help businesses acquire new customers and build on existing relationships to create both sales opportunities and increase business value.
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- Over 70% of consumers are more likely to recommend a brand if it has a good customer loyalty program.
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- Emotionally engaged customers are 71% more likely to recommend a brand or business rather than the average rate of 45%
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- Satisfied customers are more likely to share their positive experiences with others, resulting in a referral rate of approximately 11 people.
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- 81% of customers trust recommendations from family and friends over those from companies.
Can a loyalty solution increase customer engagement?
Loyalty solutions are crucial in engaging customers with both your brand and your product. The following loyalty program statistics prove that by offering incentives and rewards, you can build a brand that your customers trust, and are more likely to recommend and return to time and time again.
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- 80% of businesses are still relying on email marketing to assist with maintaining their client retention rate.
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- Customers engaged in a brand’s loyalty program will spend 12-18% more each year.
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- 82% of customers feel more positive about a brand after engaging with personalized content.
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- Extraordinary experiences help companies earn more than just revenue and sales. They build long-lasting relationships. 53% of customers say they feel an emotional connection to the brands they buy from the most.
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- 64% of consumers said they expect companies to respond and interact with them in real-time.
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- If your business is not doing enough to engage your customers, you are 54% more likely to lose out to a competitor.
How do loyalty solutions improve customer experience?
These retail loyalty program statistics show that by offering customers personalized content and offers that are relevant to them, you can dramatically improve their customer experience. Shoppers are more likely to spend with you if you can prove that you know what they like!
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- A study found that customers are 50% more likely to choose a competitor who can better satisfy their needs and stay more relevant.
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- 80% of customers say they are more likely to do business with a company if it offers personalized experiences.
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- Customize everything. 52% of customers expect offers to be personalized and relevant.
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- 62% of consumers are willing to spend more if their shopping experience is customized.
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- 87% of Americans will gladly give up some form of privacy in exchange for an excellent customer experience or reward.
What about customer acquisition as well as retention?
While customer acquisition is important for any business, leveraging the customers that have already engaged with your brand is an easier and more cost effective way to grow your sales. A loyal customer is also more likely to recommend your brand and bring in new business too!
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- The global loyalty management market size will grow from USD 8.6 billion in 2021 to USD 18.2 billion by 2026.
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- Customer acquisition costs 6-7x more than retention marketing.
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- Customer acquisition cost (CAC) for B2C companies has risen by almost 50% in the last 5 years.
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- When a company achieves a 7% increase in brand loyalty, the customer lifetime value of each client can rise by 85%.
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- Your chances of selling to a new customer are between 5% and 20%, whereas that chance rises to 60% or 70% for existing customers.
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- Loyal customers make purchases 90% more frequently.
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- Businesses in the US lose $136.8 billion annually to poor customer retention.
Will loyalty increase your revenue?
Simply put, yes, it will. Businesses that offer loyalty programs see a reduced churn rate, and their existing customers spend more on average. This means that with the help of a high-quality retail loyalty program, you are increasing your business’s profitability.
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- 80% of your company’s future revenue will come from just 20% of your existing customers.
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- A 5% increase in customer retention correlates with at least a 25% increase in profit.
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- The overall profitability of a business can increase by 25-125% when its churn rate is reduced by 5%.
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- Loyalty leaders grow revenues roughly 2.5x as fast as other companies in their industries.
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- After implementing a retail loyalty program, the average order quantity of a business can rise by 319%.
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- A Loyalty solution can help increase revenues – 50% of consumers changed their buying behaviors to reach a higher tier.
How can a loyalty program add value?
Customer loyalty programs offer businesses an uncapped amount of potential, opportunity, and value. The more loyal a customer is, the less likely they are to choose a competitor over you.
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- 75% of consumers will favor a brand with a loyalty program.
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- 71% of consumers who are members of loyalty programs say membership is a meaningful part of their relationships with brands.
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- 48% of consumers want brands to begin winning their loyalty from the first purchase.
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- 57% of consumers spend more on brands to which they are loyal.
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- Customers with an emotional relationship with a brand have a 306% higher lifetime value.
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- 3 in 4 customers will switch brands for a better loyalty program.
Benefits of Coniq’s IQ platform include:
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- On average, Coniq Clients experience an ATV uplift of 5% – 30% in loyalty program members. VIA Outlets recently experienced a 26% ATV uplift.
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- Coniq clients have shoppers convert between 15% – 30% of existing databases to loyalty members.
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- Coniq clients see an increase in foot traffic, usually ranging from 5% – 20%, by implementing a retail loyalty program.