Psychological and behavioral economic studies show that people attach strongly to tangible incentives and rewards.
Reward credit cards grow in popularity
- In 2005, a record high 6.06 billion offers were mailed out by credit card companies, but only a record low 18 million offers, or about 0.3 percent, were accepted.
- Realizing that they need better incentives to attract cardholders, credit card companies are improving more of their offers with the promise of rebates or rewards.
Study reveals rewards cards’ boom in popularity
- Rewards cards made up more than half the new accounts Americans opened since 2012, the ABA study said. Among rewards cards, cash-points-miles cards have become the most popular, surpassing growth in airline cards and other co-branded cards.
- Transactions on reward cards vaulted from $580 billion in the first quarter of 2007 to $1.15 trillion in the first quarter of 2014, up 49 percent.
Top 10 Retail Loyalty Programs
- The number of retailers supporting loyalty programs has grown tremendously in 2013, but some programs are setting the bar higher for the rest of the retail industry. The number of retailers supporting loyalty programs has grown tremendously in 2013, but some programs are setting the bar higher for the rest of the retail industry.
- Through innovation, generosity, and overall effectiveness, these brands are driving customer loyalty through the roof by offering fantastic ways to reward and say thank you to their customers.
5 Best, 5 Worst Customer-Loyalty Programs
- According to marketing firm Colloquy’s Loyalty Census released last year, membership in U.S. customer-loyalty programs has reached 1.8 billion, up from 1.3 billion in 2007.
- The census showed that the average U.S. household has signed up for 14.1 loyalty programs, but only participates in 6.2 of them.
Why Big Companies All Have Loyalty Programs
- They increase the frequency of customer visits, which is huge.
- They also increase the amount customers spend each time they are in your business, as they are likely to be trying to unlock rewards.
- They help market your business 24/7 as happy customers are much more likely to talk to their friends and family about their positive experiences at your business if they are an actively engaged customer (and many studies have shown that word of mouth is far and away the most effective form of advertising). They help market your business 24/7 as happy customers are much more likely to talk to their friends and family about their positive experiences at your business if they are an actively engaged customer (and many studies have shown that word of mouth is far and away the most effective form of advertising).
Customer loyalty
- Loyalty initiatives allow you to focus on your best customers and improve customer satisfaction levels. Loyal customers buy more and are often willing to pay more, which boosts your cashflow. By increasing loyalty, you can increase profitability and extend the time they place their business with you.
