Here’s the bad news: Over half (56%) of consumers say they’re more likely to buy from a brand with a loyalty program even though only 36% redeem their rewards more than once a month, according to a study by Salesforce. But when asked what would encourage more frequent use, customers reported they were interested in features that reduced friction along the customer journey and offered personalization.
Here are three features brands can focus on to improve the performance of their loyalty programs:
1. Automatically applied rewards
Loyalty programs that let customers “set it and forget it” are at the top of the wish list. Not only do they save customers money, but they also save them time, a resource just as precious and hard to come by.
Best in class: Amazon Prime
2. Rewards applied to multiple brands
Incorporating one or more brands provides value for customers looking for an all-in-one solution. Why settle for one when you can get two (or more)?
Best in class: Starbucks and Delta Air Lines
3. Personalized rewards
Not every product is for every customer. But offering personalized rewards increases the chances of a purchase while also helping retailers build out their first-party data.
Best in class: Kroger
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
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