Tiered loyalty programs serve up almost 3 times more value per customer for retailers when compared to ‘one off’ email offers or discounts, according to new data from Coniq, Europe’s leading provider of CRM and loyalty solutions.
The research, which analyzed over 169,000 transactions made by 57,000 loyalty customers across outlets, retail brands, and shopping malls, identified that brands offering tiered loyalty programs, which unlock rewards based on levels of spend, drove 2.6 times more in average yearly spend ($60.36) than those driven by one time offers ($25.29).
Data Tiered Loyalty Programs Provide
The higher quality of customer data and insight that loyalty solutions can gather allows for greater levels of personalization, enabling shopping malls and brands to tailor rewards based on demographics, buying behaviors, and critical information such as a customer’s birthday or preferred time of day.
Even simple loyalty mechanics such as traditional stamp cards perform significantly better than blanket, discount-led strategies. The research identified that stamp cards led to more than double the visitor return rates compared to ‘one off’ discounts, with tiered loyalty programs again the most successful mechanic at 2.3 times higher.
Sean Curtis, Chief Commercial Officer at Coniq, explained:
“Our latest research found that 61% of customers who sign up to a database never return, which starkly highlights the importance of identifying and targeting the 39% who do. In addition, there is huge variation in customer lifetime value, underlining the need to identify, nurture and reward your most valuable and loyal customers.”
“Critical to this is a robust customer engagement strategy; while traditional ‘stamp cards’ can support repeat custom by providing incentives to return, they lack the insight needed for brands to forge meaningful – and profitable – relationships with customers that will keep them coming back and incentivize them to spend more. Retailers need the capability to leverage data to create moments that win engagement and create brand advocacy – this is where technology truly adds value.”
For further information about Coniq, contact marketing@coniq.com
About Coniq
Coniq is Europe’s leading CRM and loyalty provider for retail destinations. Coniq operates in 25+ countries, providing CRM platform and mobile-enabled loyalty programs for 750+ restaurant and retail brands in 3,000 locations; its programs are used by over 15 million loyalty shoppers, driving additional consumer spend of $2 billion per annum.
Coniq’s loyalty and data platform allows restaurants, shopping centers, business improvement districts (BIDS), and retailers to launch loyalty programs that identify who is spending, where, when, and why.
