These retention marketing stats will shape customer relationship management in 2015. Here's why.
Planning for loyalty success in 2015? You've come to the right place. Here are the key retention marketing stats we've seen in 2014 that will shape brand success in the coming year.
Customer retention rates are 18% higher on average when employees are highly engaged
Oftentimes, marketers spend so much time marketing a program externally that they forget to market a program internally. However, invested employees make a significant difference in the success of retention marketing (remember that a 5% increase in retention produces a 80% increase in profits). Just keep in mind – employees need to be authentic with their program engagement, as customers will notice.
In 2015, loyalty progams are going to become more and more about building a relationship between brand and customer. Discounting will be replaced by customized programs that offer experiential rewards to loyal patrons. Employees have to be a part of this process.
70% of consumers would shop more often and 45% would spend more if they were able to share rewards
Smart brands that care about customer experience will use rewards to increase overall customer lifetime value. Giving loyalists the ability to share their positive experience with others not only ensures an increase in first-time customers (from referrals), but also an increase in repeat customers' visit frequency.
In 2015, you'll see more brands designing reward share incentives. To be successful with modern retention marketing, brands need to create an atmosphere where customers feel valued. When customers feel valued, they reciprocate. That's how loyalty works today.
American companies invest more than $2 billion annually in loyalty programs, generating 10% membership growth. Yet active memberships declined from 2010 to 2012 by 4.3%
In 2015, loyalty programs will have to be effortless to see success. Customers are interested in loyalty, but only if they feel that they can enhance their existing experience. Extraneous steps such as "checking in" or scanning clunky 2D codes will be out. Instead, companies that strip out as much friction as possible will be the ones to see success.
60% of the consumers would be more likely to join a retailer’s loyalty program if it allowed them to earn extra points or benefits when using their bank’s debit or credit cards
Remember, credit cards have more value to consumers than just being an easy way to pay. There are a host of credit card benefits such as airline miles and cash back that consumers care about. New loyalty programs (e.g. MCX) have to deliver value to (i.e. pay) customers to account for these incentives. It they don't, they will not be able to change behavior.
In 2015, those loyalty programs that allow consumers to continue enjoying their benefits will have a distinct advantage over other options. These benefits hold enormous sway over how customers choose to interact with brands. In addition to the above, 53% of consumers agree that it would be useful if they could connect their debit or credit cards to their loyalty programs to collect points without using any extra cards or apps.
86% of retailers believe a poor checkout experience (online and in-store) can be a competitive disadvantage
This shouldn't be a shock for online retail. What will become more pronounced in 2015 is that in-store retailers will start modeling their strategy after what's made online successful: a simple check out process that generates actionable insights for the merchant.
70% of retailers rated expedited transaction speed as the most desirable element of an improved checkout experience
Back to our point about loyalty needing to be effortless in 2015. With the launch of Apple Pay in 2014, for example, we saw the most famous product maker in the world launch a product aimed at solving something others haven't (mobile payments) with a single focus: quicker transaction speed. Loyalty programs should follow suit.
58% become irritated when they forget to bring their coupons or offers to the store
Why make customers upset? Loyalty programs that see success in 2015 will use effective customer communication to make sure that each in-store interaction enhances overall brand value.
75% of consumers said they approve of businesses giving preferential treatment to customers who spend more money
Without exceptions, 20% of customers drive 80% of revenue. Loyalty programs in 2015 will see success if they can identify that top 20% of customers and provide an experience for them that ensures they continue coming back in store.
The average smartphone owner downloads 26 apps but uses only six of them daily
Yes, the real estate on a consumer’s main app screen is important. More important, however, is the big picture understanding how to launch an effective branded app for customer loyalty. Long story short, customers aren't using branded apps daily. They are using apps to post to social media sites, read maps, and message their friends. Restaurants and retailers shouldn't let the vanity of apps distract them from their primary focus: drawing customers in-store and providing them with a excellent experience. Apps provide utility as a complement to the in-store experience; they are not a replacement.
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