Loyalty Program Weaknesses? Only 25% Reward Engagement

Customer loyalty programs are gaining popularity: Consumers belonged to an average of 13.3 programs in 2015, up from 10.9 in 2014. And it’s clear that loyalty is key to brand growth: Returning shoppers spend a whopping 67% more than new ones, according to this infographic from Selfstartr.

But many loyalty programs don’t actually instill customer loyalty. In fact, 77% of programs that use transaction-based rewards fail within the first two years. The missing ingredient? Reward customer engagement — not just purchases. Currently, just 25% of loyalty programs offer rewards for some form of engagement. Smart retailers will take advantage of the opportunity to revamp programs in order to engage more effectively with loyal customers.

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IG InstartLogic 6.7.16

Source: Selfstartr

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