Whether it’s to enhance retention, differentiate your brand or compete with rival programs, today’s marketers need to consider these programs within their marketing strategy.
Customers Love Rewards
71%
of the Australian population are members of at least one loyalty program
Consumers in mature rewards focused markets such a financial services, retail and aviation have developed an expectation of rewards in many purchase experiences.
Other growing industries such as online wagering, fintech and commodity styled services such as electricity and insurance are leveraging this expectation from consumers by integrating sophisticated rewards programs
Proven to Influence Customer Behavior
12%-18%
more incremental revenue growth per year for members of loyalty programs
Rewards programs are proven to influence customer behavior and, in many cases, enhance customer loyalty. Rewards influence repeat purchase and retention as well as drive specific actions that drive underlying revenue: completing applications, reading content, trying to new products.
Rising Acquisition Costs
5x the inflation
Cost of digital advertising is rising at rates 5x the inflation
Rising acquisition costs in the digital advertising landscape have put a focus back onto retention.
Today’s brands need to reduce customer churn and focus on leveraging their existing relationship with clients as much as possible..