Loyalty Rewards Program: 25 Statistics for a Winning Program

A rewards program is a proven strategy that increases engagement and revenue by encouraging customers to stay loyal to your business. In 2021, brand loyalty is more important than ever, and a rewards program can play a huge role in attracting and retaining a long-term client base for your fitness business. In fact, according to a study by Rare Consulting, 83% of customers say loyalty programs make them more likely to continue with certain businesses.

How do they work? When a client interacts with your brand by taking a fitness class, renewing their membership, writing a review, or referring a friend, they earn points, which they can redeem for rewards like discounts or free services.

We know that it can cost five to 25 times more to acquire a customer than sell to your existing ones—that’s why a rewards program is essential to keep clients interested in your business. Still need some convincing? The addition of a loyalty rewards program to your retention strategy is well worth it, and several stats tell that story.

Why do members participate in a rewards program?

Did you know 75% of consumers favor companies that offer rewards? Studies show that 72% of American adults are part of at least one rewards program and, on average, rewards program participants belong to nine programs across multiple industries. Here are a few stats that explain why:

1. 54.7% of consumers join a loyalty program to save money and 37.5% do it for the rewards. (Microsoft)
2. 73% of people believe rewards programs should be used to show loyalty to customers. (Kitewheel)
3. 37% of US consumers participate in rewards programs because they are easy to understand. (COLLOQUY)
4. Others participate in a rewards program because they receive discounts/offers (43%), earn free stuff (27%), gain access to exclusive rewards (10%), and get members-only benefits (9%). (HelloWorld)
5. 28% of millennials will also consider convenience when deciding whether to join a loyalty rewards program. (Kobie)

How can a rewards program build your community and increase loyalty to your brand?

Businesses often struggle to build strong customer relationships. A rewards program can not only influence consumers to choose your business, but it can also increase loyalty once they become clients. From attraction to loyalty to referrals, these stats tell why a rewards program is essential for the client experience:

6. 65% of businesses use their rewards program to attract new customers. (The Harvard Business Review)
7. 64% of businesses say they connect best with customers through a loyalty rewards program. (Semrush)
8. 54.7% of customers reveal that they’re truly loyal to one to five brands. (Yotpo)
9. 75% of consumers admit to favoring companies that offer loyalty and reward programs. (Small Biz Genius)
10. 22.34% of consumers say a rewards program inspires their loyalty to a brand. (Yotpo)
11. 68% of millennials report they will not be loyal to a brand that doesn’t have a good rewards program. (Annex Cloud)
12. Over 70% of consumers are more likely to recommend a business if they have a good loyalty program. (Small Biz Genius)
13. 84% of consumers are likely to recommend a business to a friend or family member if they offer a loyalty rewards program. (Clarus Commerce)

How do rewards programs grow revenue and influence spending behavior?

Rewards programs are a valuable aid to influence client spending habits, and as a benefit, you grow your revenue. Here are a handful of statistics that show why rewards programs are so important for revenue growth:

14. Companies with strong loyalty marketing programs generate revenues 2.5 times faster than their competitors. (HBR)
15. 54% of consumers say they would do more business with a company if offered loyalty rewards. (Annex Cloud)
16. 46% of customers agree to spend more after joining a loyalty rewards program. (Semrush)
17. Less than 8% of customers claimed rewards were not important to their purchasing decisions. (Wirecard)
18. 66% of customers say the ability to earn rewards actually changes their spending behavior, leading them to purchase more often. (Bain & Company)
19. As a result, rewards programs will increase overall revenue by 5-10%. (Annex Cloud)
20. People that are a part of a business’s loyalty rewards program buy 5-20% more often than those who are not part of a program. (Annex Cloud)
21. 75% of customers report they are more likely to make another purchase after receiving a loyalty reward. (Wirecard)
22. It’s important to remember, though, that 75% of consumers want to be rewarded beyond spending. (Clarus Commerce) Also, offer rewards points when a client:

• Leaves a review.
• Refers a friend or family member.
• Shares a post about your business on social media.

How can a loyalty rewards program increase client retention?

If a consumer likes a brand, they will rarely switch to another company. A rewards program will keep your clients engaged, which means they will likely stick with your business for a while. People remain loyal to a business they trust, like they would to a friend. A rewards program not only provides value to the client, but it increases the likelihood of repeat business. Here are a few stats that illustrate this point:

23. 75% of customers said they were likely to make another purchase after receiving an incentive, such as rewards points. (Wirecard)
24. 23% of businesses use their rewards program to re-engage with customers with the hopes of retaining them. (The Harvard Business Review)
25. Consumers who participate in a loyalty rewards program are 80% more likely to continue with that brand over a competitor and twice as likely to recommend that business to their friends. (3 tier logic)

With a loyalty rewards program, your business will win

From brand loyalty to revenue and retention, it’s clear that a rewards program is exactly the solution your business needs.

Where do you find a loyalty rewards program that makes it easy for clients to earn points and redeem them for prizes? Fortunately, WellnessLiving’s all-in-one platform has a built-in rewards program, allowing you to customize the rewards for your clients—reward them with discounts, merchandise, free services, and more.

We’ve got one more stat for you: 70% of consumers currently manage their rewards programs with a mobile app. (Wirecard) Using our Achieve Client App, your clients can view their points and redeem them for a prize right on their phones. The leaderboard feature also creates friendly competition, resulting in clients engaging and spending more to ensure they finish on top.

A loyalty rewards program is a win for your business, and WellnessLiving is honored to help you manage and grow your program. Interested in utilizing a rewards program in your business? Book a free, no-commitment demo today to learn more.