STEP 1 Loyalty in numbers
Loyalty programs are very often incorrectly identified with more or less complicated discount systems. While the transactional approach of converting transaction values into available discounts is indeed effective, it is important to note that it is not the sole reason why customers join the program.
More than just discounts
Many studies suggest that exclusive rewards available only to club participants are just as significant as discounts and coupons obtained by customers. The next places in rankings represent the prizes that are challenging to assign a tangible value. What is particularly intriguing is that these prizes are not significantly less important.
- Discounts and coupons - 93% 1
- Loyalty awards - 91% 1
- Early or exclusive access to offers and services - 86% 1
- A sense of belonging to the brand community - 59% 1
- Unlocking additional content - 51% 1
Key numbers
You are already familiar with loyalty programs, but let’s explore why they are crucial. Loyalty programs are increasingly becoming a fundamental aspect of business strategies for online businesses, both big and small, as demonstrated by various studies and reports.
- Personalized experiences through their loyalty programs can increase customer satisfaction scores by up to 20%. 2
- 84% of consumers are more likely to choose retailers that offer a loyalty program. 3
- By 2025, a substantial 75% of large organizations will have implemented at least one AI-driven loyalty program. 4
Customer engagement
The advantages of loyalty programs are supported by the data we have collected and analyzed. This data proves that consistent focus on customer engagement and satisfaction is crucial in reducing churn and boosting sales.
Remember that engaged customers are not only more likely to actively participate in loyalty programs but also become loyal advocates for your brand. As you can see from the attached figure, our customers’ experience shows that the key to success is to engage users and to transition them from being anonymous to being actively connected with the brand.
Brand loyalty really matters
Customer engagement increases as the brand strengthens. Community engagement, consistent values, language, and company actions all play a role. Therefore, a good loyalty program should align with the brand, not the other way around.
From the perspective of the Synerise customers, loyalty programs provide significant business benefits by optimizing costs and driving revenue growth. These programs offer a wide array of advantages, including fast implementation and adaptable analytics tailored to specific requirements. They also enable real-time customer interactions, digitize services, and grant immediate access to reports.
Next Step
Data and figures are crucial in Synerise. That’s why we began our introduction with them and will conclude with them. But before you proceed to the final step, please go to the next article with the question section.
1 Source: Insider Intelligence | “eMarketer” raport January 2024
2 Source: McKinsey, “Making Loyalty Pay: Six Lessons from the Innovators.” 2023
3 Source: Nielsen, “The Benefits of Rewards”
4 Source: IDC, “FutureScape: Worldwide Retail 2021 Predictions”
