As brands struggle to differentiate their programs from others, "loyalty" as a retention strategy quickly becomes a glorified engagement and discounting program. This obviously cuts into margins and chips away at the consumers' trust of the brand.
True loyalty is an opportunity to not only demonstrate sincere appreciation for your highest value customers, but it's a way to meet your brand goals and staying aligned with brand values. Across the globe as well as in our own programs, we've seen how loyalty done best aligns a brand with it values, grows to meet its KPIs, and guides customers along ideal milestones of growth.
Some examples of loyalty programs adding brand value include:
- A leading cosmetic retailer attributes its 30% YOY increases to its loyalty program1
- A global CPG company realized a 7x ROI, and is expanding its program to 6 more countries in 20182
- A shoe retailer reduced attrition by 20%3
- A national pharmacy chain built emotional loyalty with customers to grow average weekly spend by 38% and 2x increases in rewards redemption rates4
- Using segmentation to capitalize on membership data, an international shoe brand tripled its member base 3x in two years to 100 million members, and uses experiential rewards to embed itself into its customers' lifestyles on a daily basis5
For more information on a customer-centric approach to loyalty, please click here.
(2) Aggregate Aimia data 2016 - 2017
(3) Aggregate Aimia data 2017