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Data for this episode of Truth In Data is provided by Mercator Advisory Group’s report Gamification and Other Strategies for Merchants to Enhance Customer Loyalty. This is part 2 of a look at customer loyalty; check out part 1 here.
Only 5 verticals achieve customer adoption above 40% for their loyalty programs:
- Grocery: 59% adoption
- Pharmacies: 54% adoption
- Warehouse Clubs: 48% adoption
- Airlines: 48% adoption
- Hotels: 44% adoption
And consumers visit them more:
- Grocery: 55%
- Pharmacies: 46%
- Warehouse Clubs: 56%
- Airlines: 51%
- Hotel: 53%
And consumers spend more at the merchant:
- Grocery: 53%
- Pharmacies: 41%
- Warehouse Clubs: 57%
- Airlines: 46%
- Hotels: 46%
Some verticals barely break 1/3 adoption:
- QSRs: 33% adoption
- Restaurants: 31% adoption
- C-Stores: 21% adoption
There are roughly 4 reasons they fail:
- incorrect rewards/loyalty structure
- not enough value delivered
- failing to use mobile as a primary tool
- not providing gamificiation to continually engage customers
About this report
Most studies find that merchants spend at least five times more to gain a new customer than to keep an existing one. Further, higher customer retention typically leads to greater business profits. A new research report from Mercator Advisory Group, Gamification and Other Strategies for Merchants to Enhance Customer Loyalty, assesses different types of customer loyalty programs across various retail verticals and discusses key success factors for merchants to act upon.
