New Study Reveals How Loyalty Programs Boost Customer Spending and Drive Longterm Business Success

Unwrapped: Snappy's 2024 Customer Loyalty Study Finds 70% of Consumers Prioritize Brands with Loyalty Offerings; 76% of Americans Report They Will Spend More When Part of a Loyalty Program

NEW YORK, June 20, 2024 /PRNewswire/ -- Snappy, the award-winning gifting company, releases findings from Unwrapped: Snappy's 2024 Customer Loyalty Study, an in-depth survey of American consumers that reveals how customers align their loyalty and spending to brands and businesses.

Customer loyalty is critical to brand success and longevity in today's competitive market. In 2023, the U.S. saw a record 5.5 million applications for new businesses. Business competition continues to rise, and even the most successful heritage brands cannot rely on brand legacy for survival. Cultivating an emotional connection and earning meaningful customer loyalty is key to ensuring a company can continue to grow. Snappy's 2024 Customer Loyalty Study surveyed 1,500 Americans to better understand customer decision-making and brand loyalty. The study also delves into customer expectations and experiences, and how they inform business strategy for loyalty programming through the customer lifecycle from acquisition to ongoing engagement, and lasting retention.

When it comes to new customer acquisition, the study finds the majority of consumers (70%) report loyalty program offerings are a key factor when considering which companies and brands they choose to do business with. Seven in 10 customers (72%) report they will join a customer loyalty program before making their first purchase. Loyalty programs have a big influence on customer spending, with 76% of respondents reporting they will spend more money with companies when they're part of the brand's loyalty program.

When choosing a company to engage with, customers prioritize product quality (67%), price (64%), customer service (51%), and whether the brand/company offers a rewards or loyalty program (47%). When quality, price, and service are equal, compelling customer loyalty programs can significantly impact business success. Not all loyalty programs are created equal, and what brands offer matters in earning ongoing customer loyalty. The 2024 Customer Loyalty Study reveals the most important loyalty program features, ranked by customer preference:

1. Earning rewards points for purchases and brand engagements that can be redeemed for incentives such as discounts on future transactions or bonuses such as gifts from the brand or exclusive merchandise
2. Earning exclusive discounts or coupons that are unavailable to non-members
3. Access to exclusive membership perks, such as a dedicated customer service team, free shipping, or personalized offerings and incentives

Once a customer is part of a company's loyalty program, keeping them engaged and interested is an ongoing challenge that requires a thoughtful strategy. Three in 4 customers (73%) report that when they receive quality gifts or exclusive merchandise as part of a customer loyalty program, they see the brand more favorably. The vast majority of customers (91%) report they are specifically interested in loyalty programs that offer the option to select a gift for themselves as part of their reward offerings.

Consumers seek extra acknowledgment and benefits from loyalty programs during key moments in their customer journey: birthdays (90%), the holiday season (60%), and the anniversary of a first brand interaction, purchase, or membership sign-up date (59%).

Customer engagement will have its ebbs and flows. When customer engagement lapses, the study finds companies can re-engage loyalty program members by increasing reward value offerings (45%), offering unexpected rewards or incentives (25%), sending a gift (16%), and promoting new benefits, offers, and news about the brand (13%).

There are a few pitfalls to avoid when creating a successful and engaging customer loyalty program. According to the study, the most common mistakes companies make with loyalty programming include offering unattractive rewards (71%), having a complicated reward redemption process (71%), offering cheap or invaluable incentives (68%), and having poor communications about their membership and loyalty programming (39%).

The 2024 Customer Loyalty Study highlights the importance of allowing customers to pick a gift as part of their loyalty program (91%). With Snappy, businesses can offer this feature, providing high-impact gifting and rewards solutions that boost customer loyalty and satisfaction. Snappy's seamless API integration enables companies to power their loyalty programs, improving customer satisfaction and engagement.

Generate a positive brand image, reward loyalty, cultivate an ongoing relationship, and streamline large-scale promotional campaigns for customers with Snappy. For more information and to start improving your customer loyalty experience, visit Snappy.com.

Survey Methodology
Unwrapped: Snappy's 2024 Customer Loyalty Study captured responses from 1,500 Americans between May 25, 2024, and June 11, 2024; respondents were recruited based on demographics, including employment status, via an online sample by Propeller Insights, an independent, third-party market research company. All survey respondents were active, full-time employees in the American workforce at the time of their responses. Respondents represent a diverse variety of ethnic, education, and income levels, and are geographically dispersed across the United States.

About Snappy
Snappy is the gifting platform that spreads joy, shares gratitude, and takes the guesswork out of gifting.

Founded in 2015, Snappy was named one of Inc.'s fastest-growing companies in the Northeast in 2021, 2022, and 2023. Snappy is the trusted gifting and swag partner to over 47% of Fortune 100 companies and thousands of individuals. Snappy has sent more than five million gifts worldwide. Snappy thrives on connecting people and cultivating meaningful relationships through the power of gratitude and gifting.

Snappy has been featured on Fortune's "Best Small & Medium Workplaces," "Best Workplace for Millennials," and "Best Workplace in Tech" lists.

SOURCE Snappy