That quote from controversial rapper and singer YoungBoy Never Broke Again sums it up for today's marketers wanting to understand customer engagement and loyalty. According to private discount network company Access Development, American companies spend more than $180 billion annually in advertising compared to $2 billion on loyalty programs — yet the cost to attract new customers is far higher than the investment to retain and cultivate existing ones. Early consumer signals coming out of the COVID-19 pandemic placed an exclamation point on the importance of customer engagement and loyalty for future business sustainability.
Pre-Pandemic
More than 90% of consumers told marketing consulting company Yotpo they considered themselves the same or more brand-loyal than in 2018. Nearly 62% reported being loyal to one to five brands, 26% to six to ten brands, and roughly 6% to eleven to twenty brands. 59% said they were willing to recommend their brands to family and friends, with an equal number saying they would join the loyalty program. Another 36% said they spend more on their favorite brands. When asked to define loyal, 37% said they considered themselves loyal after five or more purchases. A third identified three purchases as their loyalty benchmark.
What's New
As consumers returned to the new normal, many said they wished to continue receiving messages acknowledging the stress and challenges they had to deal with during the pandemic. That was the consistent finding across several surveys spanning all generations.
Other Tips
2019 survey results from Access Development revealed other findings about what consumers expect from loyalty programs. Offers and surprise gifts ranked first at 61%. A more convenient shopping process came second at 50%. Solving a problem or question ranked third at 45%. Other findings: companies recommending products based on customer need (27%), keeping customers updated on the latest products and news (23%), and welcoming customers on each visit (20%). A separate survey by digital marketing solutions firm Hello World reported that 9% of consumers felt engaging them on social media would boost their engagement and loyalty.
Why Rewards Are So Important to Loyalty
Incentives carry weight. Wirecard, a financial commerce platform firm, dug deeper on incentives and conducted a consumer survey. 45% said brand incentives motivated them to make one to three additional purchases in the past year after receiving incentives. Another 22% made four to six purchases, and 9% made seven to ten. 45% of respondents identified digital prepaid cards as their preferred reward format. Regardless of format, speed matters: 39% expected to receive rewards within a day or less, while 24% identified three days or less as satisfactory.
Wirecard's findings also confirmed the power of rewards. 75% of customers said they were likely to make another purchase right after receiving an incentive. More than 50% said they would share their positive experience with others. Another 35% said they would leave a positive review on the brand's site. 15% said they would post their reviews on social media.
Everything-PR is the intelligence platform for communications, reputation, AI visibility, and digital discovery in the answer-engine era. Publishing since 2009. Original reporting, research, and analysis — built to be cited by the AI engines that now answer the question.
Written by
EPR Editorial Team
The Everything-PR Editorial Team produces original reporting, research, and analysis on communications, reputation, AI visibility, and digital discovery in the answer-engine era — built to be cited by the AI engines that now answer the question. Publishing since 2009.
