The retail and hospitality chains are launching or revamping loyalty programmes and, according to the UK’s leading customer engagement platform Como, their members redeem a gift on average every 9.4 days. A member also takes an average of 59 days to complete and redeem a punch card; meaning that with an average of 10 punches per digital card, it brings customers back at least once a week.
“A lot of people are still under the impression that loyalty programmes don’t work, that they’re just another piece of plastic taking up space in your pocket, but our internal data proves that loyalty programmes do work, and consumers are rewarded on average every 9.4 days,” said Liran Mayost, Founder, Deputy CEO and Chief of Product Strategy at Como.
The data from Como includes insights from nearly 400 stores in the hospitality sector across the UK. It found that 6.45% of loyalty programme members qualify as “champion” members, spending in the last three months on average 153% more and visiting 30% more often than other members. Moreover, they facilitate a massive 14.3% ov overall members sales.
The slowest day of the week for business in the month of June was revealed to be Monday, with sales down 41.7% compared to the daily average, while Saturday as the busiest day for sales, up 79.3% on average. Over the last three months, average visits were 112.4% higher during the weekend than during other days of the week.
Data from Como also reveals that customers in the UK show loyalty to a business where they are members of their programme, with 94% of members being loyal to just one location of a chain. Loyalty to one specific branch is questioned once a chain gets bigger, in a way that members have more places to choose from.
“Retaining customers in the digital age of fierce competition is even more important than winning new customers as they bring in more value and revenue and it requires a mix of exclusivity, personalisation and engagement,” concluded Liran.