Do Perks and Rewards Really Create Loyalty?
Do perks and rewards really create loyalty? The answer is yes! But, like most things, they’re just one piece of the puzzle. While perks and rewards can initially attract customers or incentivize them to engage with a brand, true loyalty goes beyond transactional benefits.
Loyalty has become a significant topic in 2024, with the loyalty management market estimated to be worth $4.43 billion. According to a recent study, 72% of customers feel loyal to at least one brand or company. Moreover, 59% of American consumers have reported lifelong loyalty, indicating the significant potential for lifetime customer value. (SOURCE) Emotional bonding is often the driving force behind customer loyalty, which can be developed by consistently providing positive experiences, personalized interactions, and aligning with the customer’s values. Customers are naturally drawn to incentives such as discounts, freebies, or exclusive offers, which, in turn, enhance their loyalty.
Assuming you have excellent customer service and consistently provide value and high-quality products at competitive prices, you can focus solely on using perks and rewards to create loyalty. In competitive markets, perks and rewards can help differentiate a brand from its competitors, especially if they are meaningful and relevant to the target audience. For example, when signing up for a new bank account, an appropriate perk or reward could be discounts on travel or dining. Or a member of a co-op receiving discounts on gas or retail.
If executed well, loyalty programs can create a sense of exclusivity and appreciation, create long-term relationships, and foster a sense of community. Brand loyalty is a powerful tool and is considered one of the top goals for brand executives. With third-party cookies becoming a thing of the past, loyalty programs are the wave of the future when it comes to understanding your customers. That said, delivering rewards and perks is just as significant to the loyalty process as the rewards themselves. Not surprisingly, the Harvard Business Review reported that mobile solutions are the leading customer loyalty tech investment.
If you want to build customer loyalty, you have come to the right place. Visit YCS® Group; we specialize in digital consumer benefits, perks, and rewards that can be optimized to fit your needs.
