Last week I talked about the importance of enhancing your business rewards program. I wasn’t the only person talking about the need for this. Customer Experience Futurist Blake Morgan was also sharing.
This year it is more important than ever before to offer rewards tailored to your targeted audience. If your audience includes Gen Z, the positive stats for loyalty rewards jump even higher.
Review of Ms. Morgan’s article
50 Stats that Show the Importance of Good Loyalty Rewards
If you don’t yet have a loyalty program, it’s time to join the more than 90% of companies that do.
52% of American consumers will join the loyalty program of brands they regularly purchase. A surprising 84% have made a redemption from a rewards program.
Not all loyalty programs get used. Most, 65% of consumers engage with less than half of their loyalty programs.
Satisfaction with loyalty programs has dropped to 44%, down from 47% in 2018. People are looking for businesses that offer something better.
Interestingly a whopping 95% of consumers, according to Code Broker, want to engage with more loyalty programs using chatbots, AI, or VR and their smart devices. 75% want them accessible on their smartphone.
Engage with your customers emotionally, and they spend 27% more. Personalization is huge. When you do it well for your members, it creates a 6.4x lift in their satisfaction with your program.
Loyalty rewards increase sales
One stat I didn’t mention, Incentive Solutions, shared that adding a loyalty program to your e-commerce platform can increase average order quantity by 319%.
With the competition becoming more fierce as companies try to capture some of the “rebound spending,” it’s vital to ramp up bonding. The better your rewards, the stronger your fan loyalty will be.
Make sure those rewards are easy to earn and relevant to your audience.
Psychographics can maximize your rewards program.
Psychographics focuses on what and why people respond as they do. And the buying triggers are different for women and men. Since women influence so much of the spending, cater to their reward psychographics to maximize your efforts.
The use of psychographics can be of benefit when considering personalization and relevance. But it’s also beneficial for the emotional triggers of social consciousness.
Here are my 3 key takeaways on the benefits of loyalty rewards.
There are certainly lots of things to consider to create a winning rewards program.`
Keep reward programs simple
The last thing your customers want is a complicated reward system. In the article, stats showed that you’d reduce the number of users if you require a downloaded app.
The days of wallets stuffed with rewards cards are over. Most people don’t want to carry them, and yours is apt to be left on the counter or tossed.
Avoid or give very generous expiration dates. Rewards expiring before use is a frustration for members. Be sure to thank them for a redemption—you’ll be in the minority that does.
Most consumers, 95%, want to access their rewards via their smartphones. They like to use AI, Chatbots, and VI.
Giving gifts increases bonding.
Finding ways to say thank you, even when they make a redemption, holds value for consumers. And if you employ those thank yous, you’ll be in the minority of businesses who take that extra step.
I’ve never met anyone who didn’t enjoy a surprise gift or an unexpected piece of mail that wasn’t trying to sell something…just say thank you.
If you don’t have physical products, there are other options. There are numerous programs available that offer gifts that can be personalized. It becomes a branding opportunity to keep customers thinking of you. Branded items offer a bit of swag, another bonus members love.
Even early access to sales is a gift they like. 46% of customers love this bonus.
Or, send members an incentive.75% of consumers purchased something after receiving a reward.
Willing to pay for upgraded loyalty reward program
Don’t discount an upgrade option. Creating an optional paid upgrade can bond members even more. They paid something, which increases the desire to use the benefits.
Paid membership puts you into an elite inner circle. After a year of being disconnected, being a part of something has enhanced value.
When I work with clients
For new clients, or when we’re doing a review, I put on my “consumer hat.” I put myself in the shoes of their target audience and look for ways to enhance their customer experience and loyalty programs.
A customer who likes your brand and is pleased with your rewards program is far more apt to recommend you to their friends.
Need help? Judith@jculpcreativecopy.com.
You can read Blake Morgan’s Article HERE.