The Rise Of Loyalty Programs
As we exiting the holiday period, with belts that feel unusually tight, we here at SaySo Rewards wanted to provide a relatable blog that ties into the season of giving. In The Rise Of Loyalty Programs, we will be breaking down the importance of giving back to the consumer and the benefits that come along with it. Money spent on a positive consumer experience is free advertising, whereas money squandered on cutting corners can prove to have an adverse effect on your brand.
We also have results from our latest Mini-Survey in which we asked 1,000 consumers how important they think a good loyalty program is. Be sure to check that out later on in the blog, along with a summary of what those results mean and how they can help your business.
A More Detailed Look
As internet shopping has increased, so too has the number of e-commerce companies offering great loyalty programs. All the bigger corporations are now using various creative ways to keep consumers coming back and spending money on their platforms. It’s not only a nice sign of appreciation to your customers but also a great way to lock in future business and repeat visits. Stay at the forefront of your users’ minds while giving something back at the same time.
In a study by Statisa over a ten year period between 2006 and 2016 the number of individual loyalty program memberships in the United States alone had nearly tripled from 1.3 Billion to 3.8 Billion. You can see the full breakout here.
The benefits of introducing a loyalty program far outweigh the costs associated with setting up and maintaining it. Typically speaking, positive customer feedback can be attributed as the main reason why any business should consider such a program. Happy customers mean return visits, which makes for a higher retention rate and more sales on your platform. To borrow from a blog published on Loyalty Lion, a mere 5% lift in retention can increase your profits by 85%, to check out the full blog click here.
Spending Money To Make Money
From our perspective, we wanted to offer our users more to keep them engaged and coming back time and time again. To achieve this, we recently rolled out a feature which we dub Micro Rewards. In the online survey space, it is extremely common that a participant can begin a survey and spend some time answering questions only to be told they are not a good fit for the survey. In this scenario, there is no reward offered to the user. We wanted to change this and respect the users time. Now, if a survey participant gets disqualified from a survey, we will offer them a Micro Reward. Although we have increased our costs by introducing this feature, we have already seen huge increases to surveys completed per participant and increased retention and therefore an increase in total revenue generated.
Even a little change or acknowledgment to your community can prove to have a positive impact. Take our Micro Rewards mentioned above, sure it may seem like it isn’t a lot of money to reward someone, but it’s a massive improvement compared to a person receiving nothing for their time. The fact that the user has been acknowledged for their time lets them know that we are thinking about and respecting them. Even if you can’t implement a loyalty program right away try little changes on your website or app to let your users know you are thinking about them. Have a mobile game? Why not have an online leaderboard and player of the month. Got a blog? Have a monthly giveaway for all existing users. But most importantly, make sure it relates to your product and above all else, is fun and engaging.
Think Of Your Brand And How It Relates
It may not be immediately obvious how you can implement a rewards or loyalty program, the one thing to keep in mind, however, is how it relates to your brand. If you operate a website or mobile app where people come to purchase digital goods, a simple loyalty program with points given per purchase will keep those users coming back to your app and not checking out the competition. Another way you can make this more fun and stand out against the competition is by having a double points day, where users earn twice as many points per purchase.
If you operate a rewards website you could have a secondary points system where users earn “X” amount of points for each week that they have logged in daily. Once they earn enough, it can be exchanged for a gift voucher. Something like this adds to the user experience, as firstly it provides some new engagement based content, and secondly, it makes sure your users are actively visiting your platform on a regular basis.
Regardless of your brand or the product you have on offer, you should take into consideration the possibility of people trying to defraud you, just to reap the benefits of the rewards scheme you have put in place. For example, if you are offering a daily login bonus, you might want users to complete a secondary action to be able to redeem these loyalty points. This could be something as simple as completing a survey or making a purchase.
In our latest survey, we asked 1,000 consumers what they thought of rewards/loyalty programs and how they play into their decisions when shopping. Users love earning rewards through surveys (like the one we are going to be diving into below). We work with countless apps and websites that offer their audiences some kind of virtual currency that can be built up and exchanged for rewards. With such a success in this current monetization model, it should prove to be just as, if not more successful, to allow consumers the chance to complete online surveys as a way to earn loyalty points for their favorite e-commerce stores.
Have a look below to find out how important consumers think loyalty programs are and why you should be considering implementing one (if you haven’t already).
How Many Do You Belong To?
First up we asked our users how many loyalty programs they are members of. Have a look at the graph below to see the results.
Which Do You Belong To?
Question: Which of the following loyalty/rewards programs are you a member of? You can select more than one. (multiple select).
Putting Those Loyalty Points To Use
Question: How often do you spend your loyalty points?
As you can see above, loyalty points are not just some novelty that falls on deaf ears. Most users who are members of loyalty programs are spending their points on a monthly basis. It should also be noted that a substantial portion of users save their points for the holiday season.
Surveys And Loyalty Programs
Question: Even if you are not currently a member of any loyalty programs, how likely would you be to consider doing surveys with your favorite loyalty program to earn more points or rewards?
These results are especially interesting. Over 90% of consumers would consider doing surveys as a way to earn more points, even if they aren’t already members of a loyalty program. Meaning that to implement a loyalty program and a survey solution might just net you some additonal customers.
Good Idea Or Not?
Question: Do you think loyalty programs are a good idea?
Probably the most relevant result for you if you are considering implementing some kind of rewards or loyalty program on your platform. Almost 97% of people think that loyalty programs are a good idea. That is a pretty impressive figure and something not to be ignored. The consumer has spoken, the vast majority agree with being incentivized to revisit a brand.
How Much Of A Factor Does It Play?
Question: Would you be more likely to purchase from a company that offers a loyalty/rewards program than one that doesn’t?
Where To Go From Here
In conclusion, I think it’s pretty safe to say that rewards and loyalty programs have a pretty positive reaction from the vast majority of consumers, which makes complete sense. It’s nice to be acknowledged for your loyalty to a brand or product, even a small incentive is greatly appreciated by consumers. However, it’s not only the consumer who benefits, but your business also has the potential to grow too. If you look at the numbers and come up with a plan to implement a rewards system that still keeps you profitable, then chances are you will see a massive upturn in consumer retention, engagement and revenue. It can be done. There’s a good reason why so many of the larger companies do it but don’t let them take all the business from you. As always the consumer comes first and this is just one of the many ways you can show them you care about their business.
If you don’t think you are currently in a position to implement a loyalty program, don’t worry, we have one which you could potentially integrate onto your platform. Get in touch to arrange a phone consultation with one of our team members. Check out the video below to find out more about our services!
How SaySo Rewards Can Help
As you can see above, we have a great way to help you incentivize your users, all while providing them with additional content. Not only that but our brand new Micro Rewards program is the perfect solution if you are thinking about implementing a rewards program, but currently, don’t have a way to implement one of your own.