Customer loyalty program benefits: the true value of loyalty

Loyalty program membership is on the rise. The average U.S. household is enrolled in 29 programs. But how many of those programs are effective? What are shoppers really looking for in a loyalty program?

It turns out that most shoppers are looking for more than just discounts alone. 76% of shoppers see their loyalty program membership as part of their relationship with the brand. But 97% of loyalty programs are based on spending money to earn money. LoyaltyLion rewards customers for signups, comments, reviews, referrals, purchases and much more.

Running a successful loyalty program will increase profitability and generate a return on investment, which are some of the main customer loyalty program benefits for a business. But you have to think beyond rewarding for purchases alone. Rewarding customers for engagement like comments, reviews and referrals can help you generate a higher average order value and repeat business. Profitability is just one of several customer loyalty program benefits for your ecommerce business.

The infographic below from SelfStartr shows that shoppers love loyalty programs. It also illustrates how running an effective program can generate a positive ROI for your business. It’s loyal customers that drive profitability for ecommerce brands, not new customers. The data also shows why most businesses get rewards programs wrong.

Ultimate Guide To Customer Retention

Courtesy of: SelfStartr