What Customers Really Crave from Loyalty Programs

by Akanksha Mishra on
Depiction of digital transformation with a person using a laptop, growth chart, and financial icons, representing innovative business models and revenue growth in the digital age.

Fostering and maintaining customer loyalty is essential in fiercely competitive business environment. With a record 5.5 million new business applications in the U.S. in 2023 alone, even well-established brands cannot rely solely on their legacy to survive. Instead, businesses must focus on creating emotional connections with their customers to ensure growth and long-term success. Snappy's 2024 Customer Loyalty Study offers valuable insights into how loyalty programs can significantly influence consumer behavior and drive success.

Key Insights from Snappy’s 2024 Customer Loyalty Study

The study reveals some compelling statistics:

  • 70% of consumers consider loyalty program offerings a key factor when choosing companies and brands.
  • 72% of customers join a loyalty program before making their first purchase.
  • 76% of Americans report spending more money when they are part of a loyalty program.
  • 73% of people view a brand more favorably when they receive quality gifts or exclusive merchandise as part of a loyalty program.

These findings highlight the importance of loyalty programs in attracting new customers and increasing spending and retention among existing ones.

What Makes Loyalty Programs Effective?

Loyalty programs must offer real value to customers to be effective. According to Snappy’s study, the most attractive features include:

  • Rewards Points and Incentives: Customers prefer programs where they can earn points redeemable for discounts, gifts, or exclusive merchandise.
  • Exclusive Discounts and Coupons: Special offers available only to loyalty program members.
  • Membership Perks: Benefits like dedicated customer service, free shipping, and personalized offers.
  • These elements help keep customers engaged over their lifecycle and foster a positive brand image.

The Importance of Personal Touches

Personalization plays a critical role in the success of loyalty programs. Consumers appreciate extra acknowledgment during significant moments:

  • 90% appreciate personalized touches on birthdays.
  • 60% during the holiday season.
  • 59% on anniversaries of their first brand interaction or purchase.
  • Additionally, 91% of customers prefer loyalty programs that allow them to choose their gifts, underlining the value of personalized incentives and thoughtful gifting.

Strategies for Re-engaging Customers

Even the best loyalty programs can experience lapses in customer engagement. Snappy’s study highlights several strategies for re-engaging members through gifting:

  • Increasing Reward Value: 45% of respondents are motivated by enhanced rewards.
  • Unexpected Incentives: 25% appreciate surprise rewards and gifts from brands.
  • New Offers and Communication: 13% are drawn back by fresh promotions and updates, emphasizing the need for a robust communication plan.

Avoiding Common Pitfalls

Snappy’s study also sheds light on common mistakes businesses make with loyalty programs:

  • Unattractive Rewards: 71% of consumers are deterred by low-value rewards.
  • Complex Redemption Processes: 71% are frustrated by complicated procedures for redeeming rewards.
  • Cheap Incentives: 68% are discouraged by low-quality rewards.
  • Poor Communication: 39% feel let down by inadequate information about the program from the brand.

Enhancing Loyalty Programs with Advanced Solutions

To avoid these pitfalls, businesses can leverage technology-driven solutions like Snappy. Snappy enables companies to offer high-impact gifting and rewards through seamless API integration, enhancing customer loyalty and satisfaction.

Building a Sustainable Loyalty Strategy

Incorporating a well-structured and thoughtful loyalty program can significantly influence customer engagement and spending, ultimately driving long-term business success. By prioritizing what customers value most, avoiding common pitfalls, and using advanced solutions like Snappy, businesses can create loyal and satisfied customers who contribute to sustained growth.

These insights from Snappy’s 2024 Customer Loyalty Study underscore the strategic importance of loyalty programs in today’s competitive market. By focusing on personalized, value-driven incentives and avoiding common pitfalls, businesses can enhance customer loyalty and drive long-term success.

For more information on enhancing your loyalty program, consider exploring advanced solutions like Snappy.
 

Customer Experience
CX