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.