Unwrapped: Snappy's 2024 Customer Loyalty Study Finds 70% of Consumers Prioritize Brands with Loyalty Offerings; 76% of Americans Report They Will Spend More When Part of a Loyalty Program

Snappy, the award-winning gifting company, releases findings from Unwrapped: Snappy's 2024 Customer Loyalty Study, an in-depth survey of American consumers that reveals how customers align their loyalty and spending to brands and businesses. This study provides valuable insights into customer decision-making, expectations, and the importance of loyalty programs in today's competitive market.

• The Importance of Customer Loyalty

  • Market Landscape

    • 2023 saw a record 5.5 million applications for new businesses in the U.S.
    • Rising competition underscores the need for brands to cultivate emotional connections and earn customer loyalty.

  • Survey Overview

    • Surveyed 1,500 American consumers to understand customer decision-making and brand loyalty.
    • Focused on customer expectations, experiences, and loyalty program features.

• Key Findings from the Study

  • Loyalty Program Influence

    • 70% of consumers consider loyalty programs a key factor in choosing companies.
    • 72% join a loyalty program before making their first purchase.
    • 76% spend more money with companies when part of their loyalty programs.

  • Customer Priorities

    • Product quality (67%), price (64%), and customer service (51%) are top priorities.
    • Loyalty programs (47%) also significantly influence decisions when other factors are equal.

• Most Important Loyalty Program Features

  • Reward Points and Incentives

    • Customers prefer earning rewards points for purchases and engagements.
    • Points can be redeemed for discounts, bonuses, or exclusive merchandise.

  • Exclusive Discounts

    • Exclusive discounts or coupons for loyalty program members.

  • Membership Perks

    • Access to perks such as dedicated customer service, free shipping, or personalized offerings.

• Engagement Strategies

  • Quality Gifts and Merchandise

    • 73% see brands more favorably when receiving quality gifts or exclusive merchandise.
    • 91% are interested in programs offering the option to select a gift.

  • Key Moments for Acknowledgment

    • Birthdays (90%), holiday season (60%), and anniversaries of first brand interactions (59%).

  • Re-engagement Techniques

    • Increasing reward value (45%), offering unexpected rewards (25%), sending a gift (16%), and promoting new benefits (13%).

• Pitfalls to Avoid

  • Common Mistakes
    • Unattractive rewards (71%) and complicated redemption processes (71%).
    • Cheap or invaluable incentives (68%) and poor communications (39%).

• Snappy's Solutions

  • High-Impact Gifting
    • Allows customers to pick gifts, enhancing loyalty and satisfaction.
  • Seamless API Integration
    • Powers loyalty programs, improving customer satisfaction and engagement.

Snappy's 2024 Customer Loyalty Study underscores the critical role of well-structured loyalty programs in cultivating customer loyalty and driving business success. By focusing on high-quality rewards, personalized experiences, and seamless integration, businesses can create impactful loyalty programs that foster ongoing customer relationships and boost engagement. With Snappy, companies can enhance their loyalty strategies, ensuring they stay competitive in an increasingly crowded market.