Loyalty programs’ benefits in Numbers!
• Loyalty programs make growing your business cheaper and more efficient. According to recent UK studies: 96% of their populations are currently a member of a reward scheme while 64% belong to three or more loyalty schemes.
• In U.S Loyalty programs are so prevalent that there are more than 2.1 billion loyalty program memberships.
• Even for markets damaged from the crisis, like in the case of Greece numbers are impressive. 4.5 % rise of turnover while there is a 17% reduction of total sales.
• A repeat customer gives and gives!
Customer Retention brings Profit Growth. Acquiring a new customer costs five times more than retaining an existing customer.
Companies that grew their customer retention rates by as little as 5% saw profit increases ranging from 25% to 95%! (from Brain& Company report ). The probability of selling to a new prospect is 5-20%. The probability of selling to an existing one customer is 60-70%! (Research for Market Metrics)
• In Success stories of leading brands we notice two determinants facts that indicate real sales: 45% Frequency of visits at the stores. 28% Access to the website.
• Customers come back for the reward. 29% of customers agree that they won’t be loyal to the brand if it weren’t the rewards program.
• Customers can interact and communicate easy and direct with the brand. 72% of customers are interested in interacting with their loyalty program through a mobile device and that makes digital rewards programs cost-effective.
Numbers, statistics and reports speak loudly. Psychology and strategy behind rewards programs are so effective. When people feel they have made some progress towards a goal, become more committed towards continued effort towards achieving the goal. In the end, everyone wants to be rewarded!
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