Loyalty programs are now powerful tools of relationship marketing and becoming popular to encourage customer loyalty. U.S. consumers have 3.8 billion memberships in consumer loyalty programs. According to the Center for Retail Management at Northwester University only 12% – 15% of customers are loyal to a single retailer. This small number of loyal customers can generate between 55% – 70% of company sales. Let’s look at this infographic to see how reward programs have helped some brands achieve instrumental success.
1) FSASTORE.COM INCREASED CUSTOMER LIFETIME VALUE BY 22% WITH A REWARD PROGRAM
FSAstore.com is both the largest online marketplace for guaranteed FSA-eligible products. FSAstore.com was able to create powerful marketing promotions supported by relevant deep data sciences to maximize eﬀectiveness. The loyalty rewards platform helped FSA maximize their revenues by creating a successful reward program that signiﬁcantly improves engagement with customers. They were able to achieve the following:
- 22% Increase in customer lifetime value
- 46% Increase in website purchases
- 1M+ Members Enrolled
2) YON-KA PARIS ACHIEVED A 126% INCREASE IN SALES DUE TO 2X POINTS PROMOTIONS
Yon-Ka Paris a French skin care brand, pioneer and leader in aromatherapy was able to achieve the following with their loyalty platform:
- Achieve 48% increase in total revenue and 46% increase in repeat customers
- Increase variety in promotions by including reward points-based promotions
- Get 2.2X more revenue from loyal customers
- Replace discounts with impactful loyalty promotions that increased sales on promotion days by 126%.
3) THE CATHOLIC COMPANY ACHIEVED 13.2% INCREMENTAL REVENUE WITH A REWARD PROGRAM
The Catholic Company is the world’s largest online and catalog retailer of high-quality Catholic books and gifts. The Catholic Advantage rewards program helped The Catholic Company to avail the following benefits:
- 13.2% incremental revenue
- 90% repeat purchases rate for loyal customers
It also helped The Catholic Company re-align its marketing strategy to amp up their email marketing strategy and achieve a higher engagement with a 46% loyalty email open rate and 14% loyalty email click rate.
4) RTASTORE.COM LOYALTY INFORMATION IMPROVES REVENUE PER EMAIL BY 26%
TheRTAStore.com is one of the largest online ready to assemble and pre-assembled home cabinetry retailer in the USA. The result from their reward program was a clear indication that adding the reward program information in emails proved more effective than just regular emails. Rewards info resulted in a signiﬁcantly higher revenue per email.
A data-driven loyalty platform empowers brands to create a perfectly optimised rewards program that delivers revenue.