In today's highly competitive business landscape, cultivating and maintaining customer loyalty is crucial. With a record 5.5 million new business applications in the U.S. in 2023 alone, even the most successful heritage brands cannot rely on brand legacy for survival. Companies need to focus strategy on cultivating an emotional connection and earning meaningful customer loyalty to ensure continued grow and longterm success. Snappy's 2024 Customer Loyalty Study offers critical insights into how loyalty programs can significantly influence consumer behavior and drive that success.
Key Findings from Snappy’s 2024 Customer Loyalty Study
Snappy’s latest study reveals compelling statistics that highlight the power of loyalty programs:
- 70% of consumers report loyalty program offerings are a key factor when considering companies & brands to do business with
- 72% of customers join a loyalty program before making their first purchase
- 76% of Americans report spending more money when part of a loyalty program
- 73% of people report when they receive quality gifts or exclusive merchandise as part of a customer loyalty program, they see the brand more favorably
These findings underscore the impact loyalty programs have on new customer acquisition and spending. For business owners, integrating strategic loyalty programs can be a game-changer in customer retention and engagement.
What Customers Value in Loyalty Programs
The study identifies several key features that make loyalty programs attractive to consumers:
- Rewards Points and Incentives: Customers prefer earning points that can be redeemed for discounts, gifts, or exclusive merchandise.
- Exclusive Discounts and Coupons: Offers that are not available to non-members.
- Membership Perks: Access to perks like dedicated customer service, free shipping, and personalized offerings.
These elements not only attract new customers but also keep customers engaged over the consumer lifecycle. Three in four customers (73%) view brands more favorably when they receive quality gifts or exclusive merchandise as part of their loyalty program.
The Importance of Personal Touches
Personalization in loyalty programs is important and consumers appreciate extra acknowledgment during key moments such as birthdays (90%), the holiday season (60%), and anniversaries of their first brand interaction, purchase, or membership sign-up (59%).
91% of customers show a preference for loyalty programs that allow them to choose their gifts, highlighting the value of personalized incentives and thoughtful gifting. A strategic cadence of customer gifting boosts brand visibility, brand sentiment, and customer engagement.
Snappy provides businesses a dedicated gifting platform that seamlessly sends high-quality gift collections for every budget to recipients around the globe, spreading joy and boosting customer loyalty through the power of gifting. Curated gift collections can be sent in an instant using the recipient's email or phone number. Once a gift recipient selects their perfect item from the curated options, Snappy gathers the shipping address and handles delivery. Snappy takes the guesswork out of gifting – from sending the perfect item to the logistics to get it delivered – and amplifies customer loyalty and engagement efforts.
Strategies for Re-engaging Customers
Even the best loyalty programs can experience lapses in customer engagement. Gifting is an effective strategy for re-engaging members. The study results and Snappy reveal several ways to think about gifting as an impactful membership re-engagement strategy:
- Increasing Reward Value: 45% of respondents are motivated by enhanced rewards. Increasing the value of a gift or offering is reported as the most enticing method by customers for loyalty re-engagement.
- Unexpected Incentives: 25% appreciate unexpected spot rewards and gifts from brands
- New Offers and Communication: 13% of customers are drawn back by fresh promotions and updates, so be sure to have a communications plan in place for messaging offerings and incentives to users
Common Loyalty Program Pitfalls to Avoid
The study findings also sheds light on common mistakes businesses make with loyalty programs:
- Unattractive Rewards: 71% of consumers are turned off by rewards they perceive as low-value
- Complex Redemption Processes: Another 71% dislike complicated procedures for reward redemption
- Cheap Incentives: 68% are discouraged by low-quality rewards
- Poor Communication: 39% feel let down by inadequate information about the program from the brand
Enhancing Your Loyalty Program Offerings with Snappy
To avoid these pitfalls and enhance your customer loyalty program, leverage technology led solutions such as Snappy. Snappy enables businesses to offer high-impact gifting and rewards through seamless API integration, helping to boost customer loyalty and satisfaction.
By providing customers with the ability to choose their gifts and offering unique, valuable rewards, businesses can generate a positive brand image, reward loyalty, and cultivate long-lasting customer relationships. This approach improves customer satisfaction and streamlines promotional campaigns at scale.
For more information on how to elevate your customer loyalty program, visit www.snappy.com/business/demo.
Incorporating a well-structured and thoughtful loyalty program can significantly influence customer engagement and spending, ultimately driving longterm business success. Snappy’s 2024 Customer Loyalty Study surveyed 1,500 Americans to gain insights to help businesses design and implement effective customer loyalty strategies. By prioritizing what customers value most, avoiding common pitfalls, and using advanced solutions like Snappy, business owners can create loyal and satisfied customers who contribute to sustained growth and success.
