Loyalty Programs Boost Customer Retention

Loyalty programs and purchase incentives are more likely to improve customer retention for retailers, a study by Nielsen (NYSE:NLSN) revealed. 84% of more than 29,000 Internet respondents in 58 countries said they were more likely to visit retailers who offer such incentives.

nielsen logo

According to the survey, discounted or free products are the most valuable loyalty program benefit, with over 75% of global respondents agreeing. Customer service and free shipping incentives are important to less than 45% of the participants. When it comes to pricing, 41% of respondents said they were most likely to switch brands if they are offered a better price. Quality matters only for 26%, followed by a better service agreement (15%), better selection (10%) and better features (8%).

“While the concept of loyalty is nothing new, we are seeing a significant surge in retailers—and particularly those in developing economies—investing in loyalty programs that give them valuable insight into how to better meet customer needs,” said Julie Currie, senior vice president, Global Loyalty, Nielsen. “Savvy retailers are mining the data and looking for new and innovative ways to achieve the benefits most important to their customers.”

When it comes to loyalty sentiment, mobile phones score higher than food and beverages, with 24% of global respondents claiming complete loyalty to mobile brands and service providers. By comparison, 40% of consumers declared they were not loyal to food and beverage brands, and very likely to switch when offered better deals.

More details and additional survey data are available via Nielsen Survey: 84 Percent of Global Respondents More Likely to Visit Retailers That Offer a Loyalty Program.

Top Public Relations News:

University of Texas at San Antonio Issues Communications RFP

University of Texas at San Antonio Issues Communications RFP

Energy Trust Of Oregon Issues Marketing RFP

Energy Trust Of Oregon Issues Marketing RFP

Are Google updates the SEOs friend?

Are Google updates the SEOs friend?

CE Pulse Tracks Real-Time Online Sentiment at CES

CE Pulse Tracks Real-Time Online Sentiment at CES

The Business of Gift Giving: Online

The Business of Gift Giving: Online

4 Legal Strategies For Public Relations Material To Remain Confidential and Privileged

4 Legal Strategies For Public Relations Material To Remain Confidential and Privileged

Jessica Pressler Condemned by Bloomberg News

Jessica Pressler Condemned by Bloomberg News

Listos California Issues Digital Marketing RFP

Listos California Issues Digital Marketing RFP

MWWPR Sues Their Accounting Firm Marcum LLP Alleging Negligence

MWWPR Sues Their Accounting Firm Marcum LLP Alleging Negligence

PR Resources: Marketing Platform to Target Social Media Influencers

PR Resources: Marketing Platform to Target Social Media Influencers

Leave a Reply

Your email address will not be published. Required fields are marked *