In an era where every cent counts, brands are in a constant battle for consumer wallet share. And while inflation’s pace may have eased in recent months, the economic ripple effects still have lasting impacts, reshaping consumer spending habits and putting traditional customer retention strategies to the test. So, how can you edge out the competition to keep consumers in your corner? The answer lies in well-crafted loyalty programs that retain customers and convert them into brand champions.
The new era of consumer loyalty
Gone are the days of unwavering brand loyalty. As value-driven consumers seek more bang for their buck, they’re not just clipping coupons—they’re re-evaluating long-held loyalties to find the best deal. A recent Hubspot survey revealed a startling insight: 62% of consumers switched brands to save money in the past two years.
But the good news is that customer retention doesn't have to mean a race to the bottom to compete on price alone. Over half (55%) of the Hubspot survey respondents indicated that a robust customer reward or loyalty program would encourage them to stay loyal to a brand.
In today’s market, offering a solid loyalty program is no longer just providing the occasional perk for customers. At this point, they’re table stakes. Consider them essential tools for transforming how customers perceive and interact with your brand.
Insights from Runa: Navigating consumer attitudes in inflationary times
Especially during inflationary periods, understanding customer needs is crucial to cutting through the noise and driving results. To give you a clearer picture, we conducted an in-depth survey to explore consumer satisfaction with loyalty programs amidst rising costs.
Loyalty programs: Your customers' financial lifeline
The findings are clear: loyalty programs are vital to consumers’ abilities to maximize their spending power. A staggering 61% of respondents found satisfaction in the substantial value for money in these programs, with nearly 60% planning to increase rewards usage as part of their inflation-busting tactics in these uncertain times.
By offering tangible value and a sense of empowerment, these programs have the power to turn occasional shoppers into passionate brand ambassadors.
The winning formula for loyalty programs
But what makes the difference between a good loyalty program and a great one? Two words: simplicity and appreciation. Our survey uncovered that ease of earning and redeeming were crucial factors in customer satisfaction. But it’s more than just convenience—it’s about feeling valued.
91% of survey participants reported feeling appreciated for their participation in these programs, which can significantly enhance their overall sense of brand connection and make it harder for the competition to wrest those customers away.
Diving engagement with everyday reward redemptions
Runa's survey unveils a compelling insight: consumers are eager to blend their loyalty rewards into their day-to-day spending rather than just save them for occasional splurges. A third of the survey respondents use rewards “all the time,” and more than half allow the value of their rewards to accumulate to only $25 or less before redeeming them.
This shift allows businesses to make their loyalty programs relevant and engaging, embedding them into their customers' everyday lives. By doing so, they transform these programs from a nice-to-have into a habitual part of consumer decision-making, strengthening the bond between brand and customer with each transaction.
Differentiate your loyalty program
In a time where cost-cutting is prevalent, investing in your loyalty program is more critical than ever. To gain deeper insights into consumers’ perceptions of loyalty and rewards programs in the current economic climate, download our report, From Points to Purchases: How Consumers Leverage Rewards and Loyalty Programs in Inflationary Times.
If you're looking to elevate your reward experience with more choices, reliable technology, and a truly global scalable platform, request a demo to chat with one of Runa’s reward experts.