The Role of Loyalty Programs in Winning Over American Consumers

Loyal consumers frequently shop from their favorite brands and spend 31% more than new customers

Regardless of the industry, acquiring new customers is important, but converting existing ones into regular consumers is crucial for ensuring long-term success.

In this context, creating loyalty programs is a great way to make customers feel valued. By offering discounts and exclusive benefits, brands show a tangible commitment to greater customer satisfaction.

In fact, 60% of Generation Z believes that all brands should provide this service, and data shows that loyalty also improves responses to negative experiences. 46% of consumers say they continue to buy even after unpleasant situations if a deep relationship with the brand has been established.

How to Build an Effective Loyalty Program?

Following the pandemic and changes in American shopping habits, brand loyalty rates have drastically decreased, with 57% of Generation Z increasingly inclined to explore competitors' offerings.

In this competitive and dynamic context, establishing a deep connection with customers is essential.

Loyalty programs can be implemented in various ways, including:

• Points System: with each purchase, customers accumulate a certain number of points, which can then be used for discounts, free items, or special offers, encouraging them to return to the store to earn more.
• Exclusive Access: offering exclusive access to products, discounts, events, and promotions helps create a sense of exclusivity, keeping consumer interest high and encouraging them to remain loyal to the brand to enjoy unique privileges.
• Gifts: free products, giveaways, and gadgets make customers feel valued and strengthen the bond between customer and brand.

The use of these tools is not only a commercial technique to ensure customer loyalty but also a means to collect valuable data on American consumer shopping habits. Based on the information collected, personalized offers and communications can be created, increasing the likelihood that customers will return for their favorite items.

It is also possible to send consumers surveys about their shopping experience to understand how to improve the offer and create solutions that meet customer needs.

How to Convince Customers to Enroll in a Loyalty Program?

On average, each consumer in the USA is enrolled in 16.7 loyalty programs, so Americans are already inclined to explore new services of this type. Some incentives can include:

• Offering a welcome discount
• Using social media to increase the program's visibility
• Including a section where the service can be recommended to others, providing a benefit to those who send the invitation

When customers join a loyalty program, brands have an exclusive communication tool at their disposal, useful for sending notifications and updates about discounts, offers, and news. Besides the advantages that consumers are aware of, it is also useful to create hidden benefits that customers don't expect, thus generating a positive response that enhances the overall experience and increases brand loyalty. Consider when we go to the checkout, and they tell us that, just for that day and only for us, there's a 10% discount or a limited edition gadget available.

64% of Americans Spend More to Maximize the Benefits of a Loyalty Program

Engaging American customers in these services helps build a positive brand reputation and create a genuine connection with consumers. Investing in the implementation of an effective loyalty program proves to be a fundamental strategy for achieving long-term success in the USA.