With all the competition businesses face today, it’s smart to do anything you can to retain customers and encourage repeat purchases. That’s why it’s important to recognize the connection between loyalty and rewards.
Companies that use rewards experience better retention and, beyond that, are able to grow the revenue they get from their existing customers. Here are eight statistics that show you how customer loyalty and rewards go hand in hand.
READ MORE: 7 Ways a Business Gift Card Can Boost Customer Retention
1. More than half (54%) of customers surveyed are likely to return to a brand if they’ve received a rebate. (Source: BHN and Aberdeen)
Receiving and redeeming a rebate or other reward-based promotion helps build a relationship between your company and your customers. Not only do you give them the experience of buying a product or service they need, you also generate extra goodwill toward your brand. Prepaid rewards like Mastercard or Visa can be especially appealing, since recipients can spend them anywhere those debit cards are accepted.
2. Compared with companies that don’t use rewards, those that do see a 174% higher increase in cross-sell and upsell revenue year over year. (Source: BHN and Aberdeen)
3. They also experience 99% greater year-over-year improvement in customer lifetime value. (Source: BHN and Aberdeen)
The connection between loyalty and rewards doesn’t just bring customers back. Rewards make it more enticing for them to increase the amount they spend with you, especially when there are additional opportunities to earn more rewards.
4. When a business makes a mistake, a vast majority (96%) of regular customers say they would continue shopping there if they received an apology. (Source: HubSpot)
Experience is more important than ever, with customers being willing to take their business elsewhere after even a single bad interaction. But if you can make it right, you can actually strengthen the relationship. When you bolster your apology with an appeasement reward, your customers feel seen, heard, and appreciated. All of which makes them more likely to remain a loyal customer.
5. Nearly two-thirds (65%) of consumers say they will remain loyal to companies that offer a more personalized experience. (Source: Salesforce)
With the smart technology and custom experiences available to buyers today, personalization is no longer optional. Rewards can help you create that tailored interaction, from including individualized messages to curating redemption options based on their purchases. There’s so much you can do to show your customers that you know who they are.
6. When choosing merchants, 41% of consumers consider rewards programs to be very or extremely important. (Source: PYMNT.com)
Take loyalty and rewards to the next level by creating an ongoing customer program that not only encourages repeat purchases, it can also help you with lead generation.
If your sales and digital marketing efforts aren’t bringing enough customers into the pipeline, a rewards program may be the thing to sway prospects to purchase your product or service. And since three-quarters of retailers offer a loyalty program, according to Salesforce, you can’t really afford not to have one.
7. More than half (56%) of customers say a prepaid reward, such as a Mastercard or Visa, is a good option for loyalty members, and 46% say it’s good as an incentive to make a specific purchase. (Source: BHN 2022 Global State of the Union Insights)
Flexible rewards like prepaid cards make an effective addition to your customer loyalty programs or promotions strategy. Incentivizing your current customers can help your organization increase sales and retention.
8. Half of product marketers say tracking the changing needs of their target market is their biggest challenge. (Source: SurveyMonkey)
The connection between loyalty and rewards is a useful tool, even beyond serving as a revenue and lead generator. It can also help you gather insights to learn what your customers want, what they don’t want, and how you can keep their business. Incentivize feedback surveys and market research so you can stay on top of changing preferences and expectations to improve your products and services. That way, you’ll build a loyal customer base for years to come.
Ready to grow your business by combining loyalty and rewards strategies? Take a product tour to learn how BHN Rewards can simplify and streamline the process.
BHN Rewards puts the power of digital rewards to work for marketers, researchers, and HR managers. Don't forget to check out all the great content in our Resources section!
BHN Rewards puts the power of digital rewards to work for marketers, researchers, and HR managers. Don't forget to check out all the great content in our Resources section!
