Small brick-and-mortar retailers depend heavily on foot traffic from local customers who purchase everything from specialty items to necessities. And there are over 130,000 small retailers nationwide! Small retail not only makes up a significant portion of the US economy (worth $34 billion annually), they drive innovation.
To these businesses, loyalty programs are important. Acquiring new customers is expensive, costing businesses anywhere from 5 to 25 times more than retaining an existing customer and building on that loyalty. There is a clear correlation between brand loyalty, customer retention, and increased profits. The Loyalty Report gathered feedback from 22,000 Americans reporting on over 200 different loyalty programs. 79% of the consumers surveyed reported that loyalty programs made them more likely to continue doing business with a brand.
Highly-engaged customers buy 90% more often and spend 60% more per transaction (Rosetta Consulting). This higher frequency of larger purchases can lead to a big increase in profits — a 5% uptick in customer loyalty can boost profits as much as 95% (Bain & Company).