Shoppers are keen to earn points and miles in their favorite loyalty programs. Once you tap into the power of Points Business Solutions, you can use this as a tool to achieve significant business objectives, such as:
- Getting shoppers in your door
- Guiding shoppers to specific products
- Winning shoppers’ long-term loyalty
Why loyalty works
In our recent survey of more than a thousand consumers who are members of multiple loyalty programs, we uncovered some key shopping behaviors that can help you achieve your business goals.
We discovered that most of the loyalty program members surveyed set reward goals in their programs, and they passionately collect points/miles to reach these goals.
Tapping into popular, nationally recognized loyalty programs is a great way to build your business.
1. Get them in the door
Our survey revealed that shoppers work diligently towards their reward goals, seeking out even small amounts of points and miles on their everyday purchases. In fact, 66% of our respondents said that earning points/miles in their favorite programs is important, even if they are earning only small amounts.
More importantly, these shoppers are seeking out retailers who will reward them: 60% say they actively look for promotions that help them earn, and 56% say they never miss a chance to earn, even when the amounts given are small.
When you offer the points/miles they collect, you can become a favorite store. Nearly three-quarters (71%) told us they prefer to shop at places that offer points/miles in one of their programs.
In fact, our research suggests that points accumulation is a far bigger influence on spending than either convenience or store loyalty. Almost half of respondents (48%) said they will shop at a different store in order to earn points/miles.
2. Guide them to specific products
Another interesting finding is that points/miles awards appear to make many shoppers “brand-blind.”
A solid 69% of our survey respondents stated that they would break habit and choose a different brand at least sometimes in order to earn more points/miles.
You can use this to help you meet your business objectives. For example:
- Award a handful of points/miles on an item when you need to move that inventory.
- Award points/miles for multiple purchases of an item to encourage bulk buying.
- Award points/miles on more expensive brands and higher margin products.
It’s not just about pushing particular brands or items. Strategic use of points/miles awards can help you increase overall spend at your store. Slightly more than half (54%) of our survey respondents admitted they buy more from companies when they are being rewarded for purchases.
How much more? One study by Forrester Research put the average increase in basket size of loyalty members versus non-members, when points/miles are being handed out, at 13%.
There’s no reason why this couldn’t be your business.
3. Encourage longer-term loyalty
Once you get them there, keep them there. A good loyalty program can help.
Our survey revealed that offering incentives in the right loyalty program has the potential to drive repeat behavior — 79% of loyalty program members agreed or strongly agreed that “a store offering points/miles in a program I already collect in would make me more likely to return again.”
More good news: the loyalty life-cycle is long. An overwhelming majority of respondents (88%) said they continue collecting even after they reach their goal and redeem.
The right program is key
To attract customers, increase basket size, and encourage longer-term loyalty, you need to have the right loyalty program in place. Points Business Solutions offers you the choice of awarding loyalty currency in many of today’s most popular programs.
Isn’t it time you start putting loyalty to work for you?