Marketers work diligently to educate consumers on their offerings and inspire those consumers to find solutions that fit their lifestyles, but doing so is challenging.
Consumers are more connected than ever; they also interact with brands across multiple channels, and they compare prices in the blink of an eye. However, marketers can still help drive additional purchases from their current customers.
For many companies, that effort takes the form of a loyalty program.
Benefits of a Loyalty Program
Though not new, loyalty programs are growing in popularity. A whopping 91% of retailers have loyalty programs, according to a recent Experian Data Quality study. Those programs are marketers' way of motivating customers to keep coming back and engaging with their company and their content.
Though loyalty incentives vary widely, the most popular format is for a company to provide points based on given actions that ultimately lead to a reward. This process is followed by offering free shipping and coupons.
The good news is that the bulk of companies are seeing benefit from these programs.
Three quarters of companies say they are seeing a positive return on investment from loyalty programs. Top benefits mentioned include customer retention, revenue attribution, and increased lifetime value.
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