{"id":308,"date":"2021-08-09T20:50:31","date_gmt":"2021-08-09T20:50:31","guid":{"rendered":"https:\/\/chekkitapp.com\/blog\/?p=308"},"modified":"2022-12-08T13:26:24","modified_gmt":"2022-12-08T13:26:24","slug":"is-a-customer-rewards-program-still-relevant","status":"publish","type":"post","link":"https:\/\/chekkitapp.com\/blog\/is-a-customer-rewards-program-still-relevant\/","title":{"rendered":"Is a Customer Rewards Program Still Relevant in 2023?"},"content":{"rendered":"\n<p class=\"has-medium-font-size\">If you\u2019re a business, you may be wondering if having a <a href=\"https:\/\/chekkitapp.com\/blog\/how-to-boost-sales-with-consumer-rewards-and-loyalty-programs\/\">customer rewards program<\/a> is still relevant in 2023. And the answer to this question is <strong>yes<\/strong>! In fact, loyalty programs have proven to give businesses many advantages in the modern consumer world. With the social media market continuing to grow, it\u2019s no secret that it can be difficult to stand out amongst the noise. If you\u2019re a business, now is the perfect time to use loyalty marketing as part of your overarching <a href=\"https:\/\/www.elevationb2b.com\/services\/\">marketing strategy<\/a> to get repeat business. Here are some statistics to show you just how critical it is to have a rewards program in 2023.\u00a0<\/p>\n\n\n\n<h2 class=\"has-large-font-size wp-block-heading\"><strong>Customer Rewards Program Statistics<\/strong><\/h2>\n\n\n\n<ul class=\"has-medium-font-size wp-block-list\">\n<li>In the U.S., there are <a href=\"https:\/\/www.accenture.com\/_acnmedia\/pdf-43\/accenture-strategy-gcpr-customer-loyalty.pdf\">3.3 billion loyalty memberships<\/a>.<\/li>\n\n\n\n<li>Consumers who participate in loyalty programs are <a href=\"https:\/\/sloanreview.mit.edu\/article\/why-customer-experience-is-key-for-loyalty-programs\/\">80% more likely<\/a> to choose their brand over competitors and 2x as likely to recommend the brand to friends.&nbsp;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.emarketer.com\/content\/millennials-gen-z-less-inclined-to-participate-in-loyalty-programs\">58.7% of internet users<\/a> stated that earning rewards or loyalty points was one of the most valued aspects of their retail shopping experience.<\/li>\n\n\n\n<li>If your business is not doing enough to engage your customers, <a href=\"https:\/\/techjury.net\/blog\/customer-loyalty-statistics\/#gref\">54% will consider dropping you<\/a>.<\/li>\n\n\n\n<li>Your chances of selling to a new customer are just between 5% and 20%, whereas that chance rises to <a href=\"https:\/\/altfeldinc.com\/pdfs\/Customer%20Loyalty.pdf\">60% or 70% for existing customers<\/a>.<\/li>\n\n\n\n<li><a href=\"https:\/\/techjury.net\/blog\/customer-loyalty-statistics\/#gref\">75% of consumers<\/a> will favor a brand if there is a loyalty program that rewards members.<\/li>\n\n\n\n<li><a href=\"https:\/\/www.yotpo.com\/blog\/customer-loyalty-survey-data\/\">52% of American consumers<\/a> will join the loyalty program of a brand they make frequent purchases from.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\">What did you think of the stats? Did some of them surprise you? These stats just go to show you just how seriously you need to take loyalty programs \u2014 especially in this day and age.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">We showed you the stats; now, let\u2019s take a look at the 4 specific reasons why you need to have a loyalty program.&nbsp;<\/p>\n\n\n\n<h2 class=\"has-large-font-size wp-block-heading\"><strong>4 Reasons Why You Need a Customer Rewards Program<\/strong><\/h2>\n\n\n\n<h3 class=\"has-medium-font-size wp-block-heading\">1. <strong>Gives Customers Incentives to Buy More<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">Customers today are looking for ways to stretch their dollar and save money, and businesses are looking for ways to keep their customers happy. Loyalty programs do exactly that; they both reward customers for repeat purchases and encourage them to make more purchases in the future. In fact, consumers who engage in high-performing loyalty programs are <a href=\"https:\/\/sloanreview.mit.edu\/article\/why-customer-experience-is-key-for-loyalty-programs\/\">78% more likely to pay higher premiums<\/a> just to stay with a brand.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Let\u2019s look at the <a href=\"https:\/\/www.starbucks.com\/rewards\">Starbucks Rewards Program app<\/a> and how their loyalty program incentivizes customers to buy more. With their rewards app,&nbsp; customers can load a certain amount of money onto their digital gift card to make purchases in the store. The more a customer spends, the more \u201cstars\u201d (or points) they collect. They can then use their stars to get&nbsp; free drinks, food, or even merchandise in the Starbucks store. This program encourages repeat business and even sometimes more premium purchases.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"498\" src=\"https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1-1024x498.jpeg\" alt=\"you need a rewards program to increase sales\" class=\"wp-image-364\" srcset=\"https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1-1024x498.jpeg 1024w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1-300x146.jpeg 300w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1-768x373.jpeg 768w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1-600x292.jpeg 600w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1.jpeg 1440w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/stories.starbucks.com\/stories\/2020\/a-how-to-guide-for-digital-ordering-at-starbucks\/\">Image Source<\/a><\/p>\n\n\n\n<h3 class=\"has-medium-font-size wp-block-heading\">2. <strong>You Can Track Customer Data<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">A customer rewards program offers all sorts of benefits, one of which is the opportunity to <a href=\"https:\/\/chekkitapp.com\/consumer-data\">collect valuable consumer insights<\/a>. Data from these programs can be analyzed to gain insight into:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consumer habits<\/li>\n\n\n\n<li>Preferences<\/li>\n\n\n\n<li>Demographics<\/li>\n\n\n\n<li>Psychographics<\/li>\n\n\n\n<li>Geographic location<\/li>\n<\/ul>\n\n\n\n<p class=\"has-medium-font-size\">This data will then help you better understand your customers, allowing you to offer them products and services that align with their needs. You can also use this data along with <a href=\"https:\/\/www.whatconverts.com\/blog\/definitive-guide-to-digital-marketing-attribution-software\/\">marketing attribution tools<\/a> to optimize your rewards program to ensure its profitability and that the rewards being offered are rewards your customers actually want.&nbsp;<\/p>\n\n\n\n<h3 class=\"has-medium-font-size wp-block-heading\">3. <strong>You\u2019ll Stand Out from the Competition<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">Having a loyalty program is a great way to differentiate your brand from others in the marketplace. If you are looking to stand out in a saturated market, implementing a loyalty program may be just what it takes to bring your business to the next level.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Think about credit card companies for instance. Many credit card companies offer rewards in the form of travel miles, cashback, or gift cards to get individuals to sign up for a particular credit card. Their rewards may also extend to giving new members a \u201cspecial award\u201d in the form of points or cash. By offering different incentives, those companies can better differentiate themselves from other credit card companies in the credit card industry.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1024x512.jpeg\" alt=\"stand out with relevant customer rewards program\" class=\"wp-image-363\" srcset=\"https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-1024x512.jpeg 1024w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-300x150.jpeg 300w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-768x384.jpeg 768w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image-600x300.jpeg 600w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/image.jpeg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p class=\"has-text-align-center\"><a href=\"https:\/\/www.insider.com\/best-credit-card-bonus-offers-summer-2018-7\">Image Source<\/a><\/p>\n\n\n\n<h3 class=\"has-medium-font-size wp-block-heading\">4. <strong>It Makes for a Better Customer Experience<\/strong><\/h3>\n\n\n\n<p class=\"has-medium-font-size\">Lastly, launching a loyalty campaign makes for a better customer experience. When customers come to do business with you, they aren\u2019t only looking for a product or service, they are looking to have a great overall <a href=\"https:\/\/ied.eu\/blog\/how-to-improve-customer-satisfaction-amazing-tips-for-2020\/\">customer experience<\/a> too. It might not be at the top of mind when doing business with you, but it will be if your competition offers a better experience.<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Giving your customers a different way to engage with your brand is a way to send your brand experience through the roof. If there are no other companies in your industry with customer loyalty programs, you need to be the company that breaks ground. Not only can loyalty programs drive ROI, but customer rewards programs are also fun and engaging for your customers to interact with your brand. Think about your favorite <a href=\"https:\/\/chekkitapp.com\/blog\/impact-of-brand-loyalty-on-consumer-behaviour\/\">brand loyalty<\/a> program. Don\u2019t you get excited thinking about how you can collect points or get rewards?&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\"><strong>Fun Fact<\/strong>: <a href=\"https:\/\/cdn2.hubspot.net\/hubfs\/352767\/Loyalty%20Report%202018%20Files\/Bond_TheLoyaltyReport%202018%20US_Exec%20Summary.pdf?__hstc=20629287.9baff9b886da5e2fe655b4113897e76d.1580934235534.1585683608724.1586982181323.7&amp;__hssc=20629287.3.1586982181323&amp;__hsfp=3576519970\">71% of consumers<\/a> say loyalty programs are a meaningful part of their brand relationships.<\/p>\n\n\n\n<h2 class=\"has-large-font-size wp-block-heading\">How To <strong>Reward Your Loyal Customers<\/strong><\/h2>\n\n\n\n<p class=\"has-medium-font-size\">All in all, customer rewards programs are worth it if you know how to leverage them effectively. From helping your standout against the crowd to boosting your sales for the quarter, customer rewards programs are far from being obsolete. In fact, with the rise in technology adoption, there is no better time to launch a loyalty campaign than now.&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">We only have one question left for you. What are you going to do to stay ahead of the curve?&nbsp;<\/p>\n\n\n\n<p class=\"has-medium-font-size\">Visit&nbsp;<a href=\"https:\/\/chekkitapp.com\/consumer-engagement-platform\" target=\"_blank\" rel=\"noreferrer noopener\">our website<\/a>&nbsp;to learn more about <a href=\"https:\/\/chekkitapp.com\/case-studies\">how brands like Nivea, Indomie, Golden Penny Pasta, and Amaizing Day Cereal<\/a> have used chekkit&#8217;s <a href=\"https:\/\/chekkitapp.com\/consumer-promotions-loyalty-programs\">consumer engagement &amp; digital loyalty tool<\/a>. Want to see how it works for yourself?&nbsp;<a href=\"https:\/\/chekkitapp.com\/blog\/demo-request-page\/\">Get a free demo&nbsp;straight away<\/a>!<\/p>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large\"><img decoding=\"async\" width=\"512\" height=\"512\" src=\"https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/Ryan.jpg\" alt=\"Ryan Gould of Elevation Marketing\" class=\"wp-image-365\" srcset=\"https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/Ryan.jpg 512w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/Ryan-300x300.jpg 300w, https:\/\/chekkitapp.com\/blog\/wp-content\/uploads\/2021\/08\/Ryan-150x150.jpg 150w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/figure>\n<\/div>\n\n\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\">\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n\n\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n\n\n\n<p>Ryan Gould |<em>Vice President of Strategy and Marketing Services<\/em><\/p>\n\n\n\n<p><a href=\"http:\/\/www.elevationb2b.com\/\">Elevation Marketing<\/a><\/p>\n\n\n\n<p>From legacy Fortune 100 institutions to inventive start-ups, Ryan brings extensive experience with a wide range of B2B clients. He skillfully architects and manages the delivery of integrated marketing programs, and believes strongly in strategy, not just tactics, that effectively aligns sales and marketing teams within organizations.<\/p>\n\n\n\n<p>Ryan is known for taking complex marketing and business challenges and developing solutions that simplify processes while driving customer outcomes and business value. He also thrives on guiding Elevation teams toward execution of strategies that help companies succeed in new verticals, while staying true to core values and brand integrity.<\/p>\n\n\n\n<p>LinkedIn:<a href=\"https:\/\/www.linkedin.com\/in\/rygould\/\"> https:\/\/www.linkedin.com\/in\/rygould\/<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you\u2019re a business, you may be wondering if having a customer rewards program is still relevant in 2023. And the answer to this question is yes! In fact, loyalty programs have proven to give businesses many advantages in the modern consumer world. With the social media market continuing to grow, it\u2019s no secret that [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[4,6],"tags":[14,25,23,15,33,31],"class_list":["post-308","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-consumer-engagement","category-consumer-data","tag-consumer-engagement","tag-consumer-goods","tag-consumer-loyalty-rewards","tag-consumer-rewards","tag-fmcg","tag-loyalty-programs","entry","has-media"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.2.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is a Customer Rewards Program Still Relevant in 2023?<\/title>\n<meta name=\"description\" content=\"If you\u2019re a business, you may be wondering if having a customer rewards program 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