With 80% of U.S. consumers affiliated with at least one loyalty program and more than 55% agreeing that such programs are more important than ever, it's safe to say that loyalty programs can be a significant boost to your business.
That's a prime finding of a new survey that polled 2,100 U.S. consumers on how they think about and use loyalty programs.
According to the survey, women lean more toward loyalty programs than men, especially when convenience stores, cafes, and beauty/skincare retailers offer them. 71% of women said if a store or website where they shop offered a loyalty program, they would likely join it.
Overall, consumers express interest in various loyalty programs, including grocery and convenience stores, pharmacies, and restaurants. Matt Schulz, the chief credit analyst with LendingTree, says, "The truth is that smaller, regular purchases at grocery stores, restaurants, gas stations, pet shops, and drug stores can add up to real, meaningful rewards in a big hurry. With rampant inflation, that matters."
Some of the best loyalty program ideas include first-time purchase discounts for new members, discounts for birthdays and anniversaries, and unique rewards for referrals.
Lock In Your Best Customers With A Subscription Service
A subscription program provides consumers with a product or service on a recurring billing cycle. Subscribers determine how often they want to receive each offer, with most subscriptions providing the option to renew or cancel at any time.
From pet food to coffee, clothing to auto repair, cosmetics to groceries, subscription programs are everywhere. In today's economy, with rising inflation, consumers understand the benefits of purchasing goods and services at a set price, and merchants benefit from the recurring revenue these programs provide. According to a report from UBS, subscription business models could grow from a $650 billion market to a $1.5 trillion market between 2020 and 2025. Restaurants that adopt subscription programs have a real opportunity to keep their loyal customers and beat the competition.
There are downsides to subscription plans. Consumers are becoming overwhelmed with the number of subscription options and frustrated with how difficult it can be to keep track of them. In addition, there are unexpected fees. According to a recent survey, 51% of people with subscription services have received unexpected charges, with younger generations the most impacted.
Many subscribers also encounter problems trying to cancel their subscriptions. According to another survey, 56% of subscribers say it can take up to three months to cancel unwanted recurring payments.
If you want to start a successful subscription service, there are two things to keep in mind. You need to monitor your member's willingness to pay and ensure the program remains a good value. Most subscribers reevaluate their purchases every time they're charged a monthly fee. To retain these subscribers, companies need to earn their business time and again.
Since 2005, Quikstone Capital has helped thousands of merchants with working capital for all their business needs. A cash advance from Quikstone is not a loan. It's a fast and easy alternative to traditional funding without all the complicated paperwork and restrictions. If you accept credit cards, you could qualify for up to $250,000 and have the money available in just 2-5 business days. Use the funds to create a loyalty program, buy new equipment, increase inventory, or hire additional staff. Grow your business with Quikstone Capital. Get started today!
