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:
- 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
- Earning exclusive discounts or coupons that are
unavailable to non-members
- 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.
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SOURCE Snappy