More than half, 70%, of consumers prioritize brands with loyalty programs and 76% of Americans will spend more when participating in a loyalty program.
Those are top findings from Snappy's 2024 Customer Loyalty Study which surveyed 1,500 consumers regarding alignment and loyalty.
When it comes to new customer acquisition, the study revealed the majority of consumers (70%) report loyalty program offerings are a key factor when considering which companies and brands they choose to do business with, according to a press release on the findings.
When choosing a company to engage with, customers prioritize product quality (67%), price (64%), customer service (51%), and whether the brand/company offers a rewards or loyalty program (47%).
The study revealed the most important loyalty program features, ranked by preference:
- Earning rewards points for purchases and brand engagements that can be redeemed for incentives such as discounts on future transactions or bonuses such as gifts from the brand or exclusive merchandise.
- Earning exclusive discounts or coupons that are unavailable to non-members.
- Access to exclusive membership perks, such as a dedicated customer service team, free shipping or personalized offerings and incentives.
The study also revealed three in four customers (73%) report that when they receive quality gifts or exclusive merchandise as part of a customer loyalty program, they see the brand more favorably.
The vast majority of customers (91%) report they are specifically interested in loyalty programs that offer the option to select a gift for themselves as part of their reward offerings.
When customer engagement lapses, the study finds companies can re-engage loyalty program members by increasing reward value offerings (45%), offering unexpected rewards or incentives (25%), sending a gift (16%), and promoting new benefits, offers, and news about the brand (13%).
According to the study, the most common mistakes companies make with loyalty programming include offering unattractive rewards (71%), having a complicated reward redemption process (71%), offering cheap or invaluable incentives (68%), and having poor communications about their membership and loyalty programming (39%).