The Customer Benefits of Loyalty Programs: Stats and Trends
Are you loyal to particular brands? Do you often shop at the same store or dine in the same restaurant? Perhaps you usually do your coffee runs at your favorite café? Frequent visits in the same stores make signing up for loyalty programs or membership cards a lot more enticing since you know that every peso is well-spent thanks to the rewards you can redeem later on.
Membership cards or loyalty programs are a rewards program that brands or companies offer to customers who frequent their stores or often purchase from them to encourage long-term business. This may come in the form of free merchandise, cashback, coupons, or exclusive or pre-release products.
Loyalty programs are a win-win for both the customer and the business. Take a close look at the benefits of joining one, followed by trends and some interesting numbers. Let's dive into it!
Benefits of Loyalty Programs
Below are the top advantages of joining a loyalty program, so you can stay loyal, engaged, and motivated to continue supporting your favorite brands.
- Access to rewards you actually want. Consumers sign up for loyalty programs because they find the rewards valuable, and they believe that they get something back for every peso they spend.
For instance, if you're a frequent flyer, joining a rewards program that allows you to earn points for travel miles means less cost for your future trips. You can use the earned rewards to redeem airfares or get discounted seats.
- You can save money from discounts. Who doesn't like good deals? Members will be able to spend less due to applicable discounts, also allowing them to save more by using their points.
- You can use points across different merchants. Some brands partner with other merchants, which expands where you can earn and redeem your points. For example, a bank may reward customers with a free drink or an appetizer from a cafe or restaurant. Another example would be a tech merchant allowing you to use points to purchase a phone case from another brand.
- Get early access to promotional offers. Typically, those who have loyalty memberships get access to the brand's new products, offers, and sales. Some may even pair these with exclusive discounts. For example, those who have loyalty cards can get their hands on a new flagship phone a couple of days earlier compared to those who don't have one.
- They make you feel like a VIP. Tier-based loyalty programs let customers experience better perks as they climb to higher levels. You'll find cardholders with high-tier membership cards get priority passes to check-out lanes, fitting rooms, events, and more.
- Get personalized perks. Joining a loyalty program brings lots of perks, but these are amplified during special seasons like birthdays, graduation, and holidays. For birthdays, brands can send you a code via SMS, email, or push notification that you can use to redeem gifts from them or their partner merchant.
Loyalty Program Trends
A modern world needs progressive loyalty programs. These are the emerging trends in the industry that brands and consumers alike should keep a watchful eye on.
- Creating strategic loyalty program partnerships
Collaborating with other brands brings many competitive advantages and customer retention benefits for brands, including expanding its customer base or a deeper relationship with them through effective engagement and support. The key to successful partnerships is to offer better value for customers. For instance, an airline can partner with a hotel or a car rental company to boost its membership program.
- Using a mobile app
Using a mobile app enables you to pay for products and earn rewards conveniently. It gives instant access to rewards, which you can also track, monitor, and redeem through the app. Moreover, brands can personalize messages and push offers when a loyalty program member is on-site or near their store.
- The integration of ecommerce
Online shopping is becoming increasingly popular these days, and it will only continue to rise in the coming years. A rewards program incorporated into an ecommerce website or app can help customers access to other perks, such as free shipping, extended warranties, and early access to new releases.
- Consumers like more experiential and lifestyle rewards
These days, consumers are expecting more from their loyalty membership programs. A study shows that loyalty rewards participants are highly interested in experiential and lifestyle incentives, with travel (52%), sports (41%), music (40%), tech (39%), and tools (37%) as the top five reward interests.
Loyalty card perks like points redemption for airfare or hotel accommodations, sports or music events passes, tech products as reward items, and other related benefits are enticing. They can motivate you to purchase more from the store and build customer loyalty.
- Loyalty program gamification is on the rise
With the rise of mobile devices, many users enjoy its entertaining features such as access to games. Brands have identified this channel and are starting to integrate it into their loyalty programs. Even 40% of millennials agree that there should be games in loyalty programs.
If you're a loyal brand follower and have rewards membership access, you can play games and win reward points, delivery vouchers or discounts. Winning games has never been more fun.
- Paid loyalty programs
Being a loyal customer means sticking around because of the awesome products or services, good customer service, and other benefits you get from a brand. If they offered premium perks for joining a loyalty program, it's quite an easy decision.
A study shows that 71% of consumers who aren't currently a part of a premium loyalty program would join one if their favorite brands offered them, and if the perks were valuable. If you agree, chances are you'd be willing to pay an additional fee to have access to premium or higher tier benefits as long as the rewards are worthy of the investment.
- Improved omnichannel and touchpoint strategies
Improvements in technology now allows you to have a more seamless shopping experience through effective touchpoint strategies. Sound too technical? Let's break it down.
To make it sound simpler, a touchpoint refers to the time you interact with a brand—the more touchpoints, the better. Through an omnichannel marketing approach, your touchpoints--from the first down to to the last one--work to deliver a smooth and integrated shopping experience.
Using this approach helps you get better results when searching for a specific product by showing related recommended products through the brand's rewards app.
- A Better Personalized Approach
Like with omnichannel marketing, companies use technology to suggest products based on your browsing activity to provide that unique, personalized experience reflected in their loyalty programs. This gives you better, more relevant, and sometimes, even exclusive offers!
Shop Smarter with Loyalty Programs
Loyalty programs serve as one of the best ways to keep customers engaged and in support of your go-to brands. After all, when you find a brand that you trust, you tend to stick with them.
If you catch yourself visiting or shopping from the same store frequently, check if they offer loyalty programs or membership cards, and sign up to take advantage of the benefits.
Are you curious to know if there are loyalty programs that best suit you? If you follow Robinsons Supermarket, Robinsons Department Store, Southstar Drug, True Value, and Handyman among many others, you can sign up for a Robinsons Rewards membership and reap its many wonderful shopping perks! Now, you can also use Robinsons Rewards in Shopwise and The Marketplace. Download the app today!
The Robinsons Rewards app is available via Apple App Store, Google Play Store, and Huawei App Gallery. Registration is FREE!