Loyalty Programs Shown to Triple Customer Visits

Data shows a direct correlation between communication and increased customer activity.

May 30, 2014

SAN RAFAEL, Calif. – SpotOn, a leading digital loyalty and marketing platform for small businesses, announced new data revealing that merchants who maintain frequent communication with loyalty program members see three times more customer visits than those that do not send any communications, according to a press release from SpotOn.

The findings are based on user data since February, 2014, when SpotOn launched their Campaigns feature which enables merchants to send real-time, digital offers to invite customers back. More than 2.5 million consumers currently use SpotOn’s loyalty card or smartphone app to obtain rewards at approximately 6,000 businesses nationally, including single-location merchants as well as large chains.

The figures point to a direct correlation between communication and increased customer activity. For instance, small businesses that send loyalty members two to three communications per week see three times more customer visits than businesses that do not send any communications. Merchant sales reportedly increase anywhere from 15% to 50% as a result of these campaigns.

The data also found that while consistent communication is good, there is a tipping point that can lead to diminishing returns. Businesses that send more than 13 Campaigns per month see reduced customer visits. Campaigns sent to loyalty members highlighting a promotion see an average open rate of 41%, compared to the 19% industry average open rate for email marketing.

Further, marketing Campaigns that include a redeemable offer see open rates more than 20% higher than non-promotional emails, such as newsletters or announcements.

“This new data underscores that having a loyalty program doesn’t mean your work is done,” said Doron Friedman, co-founder of SpotOn. “Businesses that supplement their rewards program with consistent communication can amplify customer visits and dramatically impact revenues.”

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