October 25, 2016
Loyal customers are one of the primary drivers of any for-profit business. By building loyalty rewards programs, companies aim to heighten the customer experience, said Kenny M. Smith, Financial Services Industry Leader and Eric Piscini, Principal, Banking and Technology, Consulting at Deloitte.
According to some estimates, more than 75% of US adults participate in customer loyalty programs like those offered by credit card companies, hotel chains and retailers and more than $50 billion in reward points and miles are issued by American businesses annually. Loyalty programs are considered to be one of the most effective ways for merchants to boost customer retention. A study by Colloquy suggests that last year, US consumers alone held 3.3 billion memberships in customer loyalty programs.
While some companies are at the top of the loyalty pyramid (GameStop, Amazon, Costco), other businesses struggle to engage with customers in a meaningful way due to various reasons – complexity of the signup process being one of the most repelling. Data suggests that