The Rise of Loyalty Programs: A look at the International Loyalty Program Landscape
Internationally, recent years have seen a huge increase in loyalty programs. Nowadays, almost every successful business offers some sort of loyalty program, driven by a more competitive environment and an expanding body of research on the benefits of loyalty. Example: Starbucks, Himalayan Java, etc. Customer Loyalty programs offer exclusivity and added benefits that just the brand cannot provide and can be seen as big gems of value to add to the product or service being delivered.
According to Queue-it, these days, more than 90% of businesses have some kind of loyalty program. All of the following are included: McDonald's, Samsung, adidas, and Disney. Additional stats according to Queue-it show that 79% of customers participate in one or more loyalty programs, 75% of them claim to buy more from these brands.
Companies that use top loyalty programs also report an annual revenue gain of 15–25%.
Enhancing Customer Retention and Spending through Loyalty Programs
The ability of a brand to retain customers and encourage repeat business is critical to its success in the competitive market of today. According to The Bond Loyalty ReportTM, 85% of consumers say reward programs make them more likely to continue shopping for their preferred companies. As seen by this high retention rate, a well-thought-out loyalty program may help companies and their clients create enduring bonds. According to the same report, 73% of consumers acknowledge that they change their spending habits to optimize their incentives, it is even more evident how directly loyalty programs affect consumer behavior and purchase patterns.
High Rate of Return: An Investment Well-Made
Putting money into a loyalty program is a wise financial move in addition to increasing consumer pleasure. According to Antavo, Global Customer, Loyalty Report 2024, 90% of loyalty program owners had a positive return on investment (ROI), with an astounding 4.8x ROI on average. This figure highlights how loyalty programs help businesses make significant financial gains in addition to keeping consumers and increasing sales.
Unlock the Power of Loyalty with Fonepoints!
These above stats give us a good view of why loyalty programs are important. With the lucrativeness shown internationally, we can estimate that the positive benefits can also be fully explored in Nepal. With Fonepoints and its loyalty points program, managing the entirety of the loyalty side, businesses can focus on their core product and services and how to add value to them. Fonepoints helps expand the customer base by attracting customers, increasing customer loyalty and boosting sales and revenue. In the long term, we can even expect to change the consumer behavior of the public and change how loyalty management is viewed in Nepal in general. With its numerous benefits, loyalty programs seem like a treasure trove of greatness. So, what are you waiting for, don't miss out on the chance to enjoy these incredible benefits—join our loyalty program today and start experiencing the rewards of loyalty.
References:
107 Staggering Loyalty Program Statistics for 2024 (queue-it.com)
The Loyalty Report™ 2024 (bondbl.com)
How Starbucks' New Tiered Rewards Program Works, From Small Rewards To Big (bustle.com)
McDonald's will launch its loyalty program nationwide in July (cnbc.com)
adidas adiClub Membership Program | adidas US
Disney Cruise Loyalty Program - Castaway Club (go.com)