Are Loyalty Programs Really Worth It? The Truth Behind the Points

In today’s e-commerce world, keeping customers loyal is key. It’s cheaper to keep customers than to get new ones, costing five times less¹. This shows how important it is to keep customers coming back. We’ll look at two Shopify apps that help with this: GV: Gift Cards Loyalty Rewards and Rise.ai: Gift Cards & Loyalty.

Key Takeaways

• Keeping customers is cheaper than getting new ones.
• Loyalty programs can make customers happier, keep them around, and increase profits.
• GV: Gift Cards Loyalty Rewards and Rise.ai are great for Shopify stores.
• Loyalty programs give a better shopping experience across all channels and help customers feel more connected.
• Picking and using loyalty rewards well is key to a successful program.
• Loyalty rewards programs
• Earn points offers
• Redeeming rewards

GV: Gift Cards Loyalty Rewards has a free “Growth” plan and a “Premium” plan for $9.90 a month¹. Rise.ai works for all businesses, with prices from $19.99 to $599.99 a month¹. Both apps are well-liked, with Rise.ai at 4.8 stars from over 1,040 reviews and GV getting good feedback from 33 reviews¹.

These apps also fit well with your Shopify store. Rise.ai works with Shopify POS, Checkout, and Klaviyo for a smooth shopping experience¹. GV: Gift Cards Loyalty Rewards connects with Shopify Flow for easy loyalty program management¹.

When choosing loyalty programs, think about what your business and customers need. The best programs meet your specific needs and make customers more engaged, loyal, and profitable².

The Changing Landscape of Banking and Customer Loyalty

The banking world used to be stable, but fintech has changed everything. Now, it’s all about new ways to serve customers, especially for Millennials and Gen Z³. Banks like Monzo and Revolut are shaking things up, making traditional banks work harder to keep customers.

The COVID-19 pandemic sped up this change. Customers want banks to be more caring and tailored to their needs³. Young people want real connections and personalized products from their banks. Banks must innovate to keep up with fintech’s speed and focus on customers.

Attracting and Retaining Customers with Loyalty Programs

Loyalty programs are key in this new world³. says 61% of customers want banks to get creative with rewards for loyalty. And³ 70% say rewards affect their choices, plus³ 20% would spend more with the right rewards.

But, building loyalty in banking is harder than in other areas³. Referred clients are 15% more profitable, showing how crucial strong relationships are. Banks need to use data and new tech to make loyalty programs that really matter.

“In some industries such as travel and hospitality, points and rewards are significant in driving customer loyalty. Customers often sign up for loyalty programs in industries like hotels not solely because of points and rewards but due to factors like brand reputation, geographic reach, and overall experiences.”⁴

As customers want more, banks must improve their programs. They need to make each point and reward more valuable⁴. By offering new and focused experiences, banks can build deeper connections with customers. This creates a loyal community³.

Are Loyalty Programs Really Worth It? The Truth Behind the Points

Are loyalty programs a good deal, or just a way to keep you coming back? In banking, the answer might surprise you. The Deloitte Employee Survey found that building loyalty in banking is harder than in other areas⁵. Yet, strong customer programs can really pay off. For instance, 70% of people say rewards from banks affect their choices, and 20% say they’d spend more with the right rewards⁵.

Loyalty programs are a win-win for both sides. Customers in these programs are 59% more likely to pick a brand over others and 43% more likely to shop more often⁵. They also tend to spend 62% more on the brand⁵. Harvard Business Review notes that referred customers bring in 15% more profits than those who aren’t⁵.

But there’s more to loyalty programs than just more spending. KPMG found that 61% of customers value innovative rewards highly⁵. The Verde Group’s study showed that loyal customers get upset more when things go wrong⁵. This shows loyalty programs can build a stronger bond with customers, leading to more loyalty and support.

To make loyalty programs work better, companies are using technology like apps and websites⁵. These tools help track customer actions and send out tailored promotions. This makes loyalty programs more valuable for both sides.

So, are loyalty programs a good idea? Definitely. They offer meaningful rewards and build loyalty, helping businesses keep customers and increase sales. For customers, these programs can make a big difference in how they feel about a brand⁵⁶⁷.

Types of Bank Loyalty Programs

The banking world is changing fast, and banks are now using loyalty rewards to keep customers. These programs offer points for spending and special rewards, making customers want to stick with their bank. Let’s look at the different types of loyalty programs changing the banking scene:

Points-based Reward Programs

With these programs, you earn points for every purchase. Then, you can use these points for things like flying, credit card rewards, or hotel stays. This way, you get rewards that fit your life⁸.

Tiered Reward Programs

In tiered programs, the rewards get better as you spend more. Moving up a tier means getting more rewards and special perks. This makes customers more loyal and engaged⁸.

Cashback Reward Programs

These programs give you cash back on your purchases. You can use this cash for things like credit services or other financial perks. It’s a great way to get something back for your everyday spending⁸.

Customer Loyalty Programs (Coalition Loyalty)

These programs work with other businesses and services. They offer more rewards and benefits to keep customers coming back. For example, you might get free ATM use, store discounts, or points for different activities⁸.

Digital Wallet-based Programs

Digital wallets are making loyalty programs easier to use. With them, earning and using rewards is a breeze on your phone. This makes it easier for banks to keep customers happy⁸.

By offering many loyalty programs, banks can meet their customers’ needs and keep them coming back. This helps build strong relationships and keeps customers loyal over time.

“Loyalty programs have been proven to be effective in retaining customers and promoting repeat business, with statistics showing that it is more costly to acquire new customers than to sell to existing ones.”⁹

Loyalty programs are a big win for banks, making customers more engaged and happy. As things change, using these programs smartly will be key for banks to stay ahead.

GV Loyalty Club: Earn Rewards at The Twisted Olive™ and Gervasi Vineyard™

Join the GV Loyalty Club for exclusive benefits and rewards. You’ll earn one point for every dollar spent at The Twisted Olive™ and Gervasi Vineyard™ locations¹⁰. These points add up and can be used for a $10 reward for every 500 points earned¹⁰.

There’s more to enjoy. Get double points on all your Monday-Thursday purchases. This means you earn rewards faster¹⁰¹¹. But remember, points can’t be used for alcohol, tax, or some other items¹⁰.

Your points won’t go to waste. They expire one year from the issue date, but your rewards never expire¹⁰¹¹. If you lose your card, you can get a new one, but you can’t get back your points or rewards¹⁰.

Sign up for the GV Loyalty Club now. Enjoy the unparalleled benefits at The Twisted Olive™ and Gervasi Vineyard™¹¹. It’s free to join and easy to check your points online, by phone, or in person¹¹.

Don’t wait any longer. Join the GV Loyalty Club and start earning rewards today¹²!

Conclusion

The banking world is always changing, making loyalty and reward programs key for banks to keep customers. These programs can really help with customer engagement, spending, and keeping customers around. In fact, they can bring in up to 20% of a company’s profits if done right¹³.

Banks can offer personalized and integrated loyalty solutions to meet the needs of their customers. This is especially true for younger people who like real brand experiences and products made just for them¹³. Banks have many options like points, tiered, cashback, coalition, or digital wallet programs to pick from. This helps them match their customers’ needs and goals.

Banks that focus on new loyalty strategies and improving the customer experience will stand out in the financial services market. With 79% of consumers more likely to pick a store with a loyalty program over one without¹⁴, and 84% more likely to stay with a brand that has one¹³, the perks of a good loyalty program are clear. By using the data from these programs, banks can make smarter choices to keep customers and stay ahead.

Source Links

1. Shopify Loyalty & Rewards: GV: Gift Cards Loyalty Rewards VS Rise.ai: Gift Cards & Loyalty
2. How special rewards in loyalty programs enrich consumer–brand relationships: The role of self-expansion
3. Bank loyalty programs: 10 successful examples
4. The future of loyalty: It’s not about points and rewards | West Monroe
5. Council Post: Loyalty Programs: What Works And What Doesn’t
6. Are Loyalty Programs Worth It?
7. Do loyalty programs really work? What the research says
8. Financial Services Loyalty Programs: A Complete Guide
9. Loyalty Program: Definition, Purpose, How It Works, and Example
10. Loyalty Program — The Twisted Olive
11. The Twisted Olive Loyalty Program Loyalty Rewards Program
12. CBC March-April 2016 Pages 1-50 – Flip PDF Download | FlipHTML5
13. Do loyalty programs work? What’s their Impact on Customer Retention? – Invesp
14. What Customers Want From Loyalty Programs