Loyalty Programs By the Numbers
For any business, customer loyalty is paramount. Traditional business wisdom suggests that it can cost at least five times as much to acquire a new customer as it does to retain an existing one!
Ultimately, building customer loyalty is about showing appreciation for your consumers, rewarding their patronage, and incentivizing them to choose you over and over again. And in today’s world, technology provides incredible opportunities for your brand to reach people outside the four walls of your brick and mortar business.
Let’s break down some recent statistics about offers and loyalty programs.
67% of consumers decide which store to shop based on paperless discounts via mobile device or loyalty card (this number increases to 81% of Hispanic consumers) (Valassis)
That said, the delivery method matters. Before a consumer leaves the house, chances are he or she has already done a quick search to see where to score the best deal.
So, while people want access to the latest sales and coupons at their fingertips, if your offer doesn’t compete with what’s available through other retailer or restaurant platforms, it’s even going to be tough to get them in the door.
Additionally, whether loading offers onto a card or delivering coupons via text, email, social media or an app, your ability to reach consumers with paperless deals or loyalty offers plays a critical role in their decision-making process.
When it comes to loyalty programs, 82% of consumers prefer discounts and offers, 77% free products, and 66% free services (HelloWorld)
It’s not just the fact that you are providing an offer to your consumers. The TYPE of offer matters, too. What resonates with one person, might fall flat with another.
And that’s where Sparkfly comes in. Our technology provides A/B testing functionality, allowing you to test different versions of your offers and monitor performance in real-time. You can also segment consumers to share offers you know will surprise and delight them based on their preferences and past purchase history.
With real-time data on offer redemption and purchase history, you won’t waste valuable time and marketing dollars sending offers that don’t generate sales.
25% of consumers do not shop online because they can neither use coupons nor take advantage of in-store deals (Valassis)
If the only coupons you’re running are in the weekly printed circular, you’re likely alienating those who want to shop from the comfort of their couch. On the flip side, some assume that physical in-store shopping has been replaced with e-commerce and doesn’t provide an easy way to redeem offers in-person. Fifty percent of consumers, however, still prefer to receive coupons in the mail.
In the end, if you aren’t providing a way for consumers to seamlessly use loyalty offers online AND in-store, you’re missing a huge opportunity to meet people where they prefer to shop. More importantly, if offers don’t feel relevant and personalized, the loyalty program becomes useless.
Sparkfly technology can support a personalized offer experience that gives your consumers the flexibility to use offers when and where they want.
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With Sparkfly, you can customize your loyalty program to optimize your marketing spend, target specific offers, and understand your consumers’ journeys from start to finish. Contact Sparkfly today to learn more and build a game-changing loyalty program.