Why more companies are investing in loyalty

Introduction

The global loyalty management market, valued at just over $10 billion in 2023, is projected to skyrocket to $20.4 billion by 2030, showcasing a remarkable growth trend. What factors are driving this surge, and why are businesses increasingly turning towards loyalty strategies like Endurance Zone?

1) Changes in Consumer Behavior

Recent studies have shown that a whopping 80% of customers these days care more about their experiences with brands than just completing transactions. This means they're looking for something special, something personalised.

That's why companies are getting creative with loyalty programs. Instead of just giving out points, they're using these programs to create highly relevant and memorable experiences for each customer. It's all about making people feel special and valued, and loyalty programs are the perfect way to do just that.

2) Rise in Acquisition Costs

Grabbing new customers isn't as easy as it used to be. Over the last ten years, the cost of getting new customers has shot up. So, companies are starting to realise they can't rely only on trying to get new customers in the door. They're turning to loyalty programs to keep the customers they already have happy.

These programs aren't just about rewards; they're about building real relationships with customers. By doing that, companies can stand out and keep their customers coming back again and again.

3) Mobile Applications

It’s no secret how attached people are to their phones. It follows that we’re not just using them to scroll through social media—we’re also using them to shop.

Studies say that a massive 70% of people prefer shopping through mobile apps, and this extends to with loyalty programs too. Customers far more likely to use and benefit from loyalty platforms when they’re in the palm of their hand. A smart way for brands to be top of mind in their customers lives, while adding value at the same time - building loyalty that lasts.

Conclusion

Loyalty programs are becoming more valuable to businesses through shifts in consumer behaviour and acquisition challenges. By aligning a loyalty program with an effective customer engagement strategy, companies are fostering stronger relationships with their customers. This can only be a good thing for businesses and customers alike!

Who are Endurance Zone?

We are the global leader in loyalty and reward solutions for the sports, fitness and health sector. We help organisations create hyper-relevant loyalty and reward experiences, that lead to commercial outcomes. We serve millions of users through industry giants such as Virgin Active, British Cycling, Great Run Company, Echelon and many more.

Drop us a message to find out how we can help you!