A recent study conducted by Experian Marketing Services found that despite the fact that 72% of organizations see the value of their customers increasing over time, only half have a customer loyalty program in place. Businesses can tap into the powerful revenue stream of repeat customers by creating effective email campaigns that will empower customers to become vocal brand advocates and deliver a strong return on investment.
According to a new report from Experian Marketing Services that explores loyalty-based consumer trends, loyalty points and rewards programs are proven tools to help retain customers in a time when consumers are increasingly likely to stray from some of their favorite brands. When planning a rewards program, consider the fact that the most popular types of credit card affiliation among U.S. adults are those offering points. In fact, 18% of all card-holders today participate in a points program. Cash-back rewards are also popular with 16% of card-holders participating in at least one such program. Airline and hotel rewards affiliations are considerably less prevalent with just 6% and 2% of card-holders, respectively, participating in each reward program.
When planning a rewards program, consider the fact that the most popular types of credit card affiliation among U.S. adults are those offering points.
Once you determine the right program, email can play an important role in optimizing customer loyalty. By leveraging email to communicate with loyalty members, your business can benefit from extensive opportunities for enhanced customer relations and generate increased revenue.
Loyalty-focused campaigns can span the entire customer life cycle, from the initial entry to program renewal notifications and reminder messages. They also tend to perform better than standard promotional mailings in terms of customer response and revenue. In fact, compared to bulk campaigns, emails targeted to loyalty program members have 40% higher open rates, 22% higher click rates, and transaction rates and revenue per email that are 29% and 11% higher, respectively. Even mailings targeting prospects with an invitation to join a loyalty program tend to outperform the promotional mailings for the same businesses with a 28% lift in transaction rates and 25% higher revenue per email.
For more information about email loyalty marketing, check out The Loyalist: Leveraging Relationships With Existing Customers to Increase ROI.