How Brands Benefit from Loyal Customers
In today’s retail landscape, shoppers are looking everywhere for better deals—and adjusting their shopping habits to find them. Inflation has played a significant role in this shift, with 82% of consumers looking for less expensive ways to shop due to higher prices, 40% staying within a budget, and 28% buying less overall.
In other words, shoppers are willing to change their behaviors—including loyalty to their favorite brands—if there is a better deal waiting for them. Beyond pricing, shoppers also want to feel seen as individuals with unique preferences. They crave quick, highly-personalized brand interactions that offer great deals when they’re ready to buy.
Even more important, retaining loyal customers is far simpler and less expensive than attracting new ones. Here’s how you can build loyalty, increase basket size, and drive higher spending with an effective grocery loyalty program that meets shoppers’ needs now—and in the future.
Ways Brands Benefit From Loyal Customers
What exactly defines loyal shoppers—and what can they do for your brand? By definition, they are customers who had a positive experience and purchased from you more than once.
The ultimate goal, however, is total lifetime engagement—consumers who spend on a regular basis, invest in upsells, and advocate for your brand to others. They consistently rely on you to learn about new products, find discounts, and streamline their shopping experience in-store and online. Here are five ways loyalty directly benefits your brand.
A survey from Customer Think revealed that loyal customers shop 90% more frequently. Not only do they return to you for their favorite products or services, but they are also interested in learning more about new products and taking your personalized recommendations. They trust you to deliver on their needs because you have in the past—and they feel more comfortable spending as a result.
Larger basket size
When your shoppers trust you, they are more likely to keep adding their favorite products—and your recommendations—to their basket. In fact, on average, shoppers increase their basket sizes 7 to 8 times per year when a loyalty program with discounts is in place. Increased basket size also means more opportunities for consumers to discover new great products—which translates to more revenue for your business in the process. What’s more, retailers who partnered with Swiftly to launch a digital loyalty program increased customer store visits by 50% and increased basket sizes by 45%.
Greater spend overall
The same survey from Customer Think found that loyal shoppers spend 60% more per transaction. Successful grocery retail programs are proof of this: The average Amazon customer spends roughly $600 per year, while Prime members spend $1400 per year. Loyalty translates to more transactions—and increased revenue to your business. Customers are likely to keep coming back for more, because they know they can rely on high-quality products and services that are worth the spend.
Stronger commitment to a few select brands
Research from Bond shows that when personalization is done right, there is a 6.4x lift in member satisfaction. When shoppers are happy and feel valued, they are more likely to return to your brand time and time again. During this period of inflation, a strong grocery loyalty program couldn’t be more important as it translates to higher commitment, meaning customers prefer to come to you for savings and discounts, rather than pivoting to a new brand altogether.
More referrals or brand endorsements for your business
Loyal customers provide valuable marketing for your brand. In fact, 92% of consumers trust word-of-mouth referrals or recommendations from friends and family above all other forms of advertising. With a grocery loyalty program, you open the door to more loyal customers—and a team of effective brand advocates who will endorse your business.
How Brands Benefit From Loyalty Programs
A critical component of building brand loyalty is delivering a personalized shopping experience that understands shoppers’ unique behaviors and needs. In turn, this leads to stronger brand advocacy and greater customer satisfaction. Here’s how.
- Loyalty programs offer an excellent source of first-party data. Equipped with valuable first-party data, retailers are able to provide shoppers with the personalized experience they want—while always respecting their privacy. Unlike third-party data, your shoppers’ privacy is protected because they agreed to provide their information, while you own and control its use. Shoppers can rest assured that their information is only being used to enhance their shopping experience. Not only does first-party data prioritize and respect privacy, it also fosters a more accurate and relevant advertising experience that is human and trustworthy —all while delivering the unique offers shoppers want at the right moment.
- Loyalty programs build stronger brand advocates and boost customer satisfaction. Customer satisfaction and brand loyalty go hand in hand. Building a positive reputation means consistently delivering an exceptional customer experience—and one that shoppers not only want to return to, but will recommend to other people. Grocery loyalty programs help you build stronger relationships with shoppers, by listening to their feedback and appealing to them on an individual level. With this ongoing, mutual relationship based in trust, shoppers are more likely to spread the word to their networks and expand your reach.
Experience the Benefits of Brand Loyalty With Swiftly
Now more than ever, creating an engaging, fun, and connected experience is the key to building lasting loyalty. Long-term loyalty translates to higher basket sizes, greater spending, and more referrals and endorsements for your brand.
Swiftly has the platform and solutions to help you thrive in an ever-changing retail landscape, defined by inflation, fluctuating shopping behaviors, digital trends, and more. With our simple, out-of-the-box model that includes a retail platform, a mobile platform, retail media, insights and analytics, you can quickly take your loyalty-building efforts to the next level. Get in touch with us to learn more.