Loyalty and lifetime value remain strong despite cost of living crisis


Loyalty and lifetime value remain strong despite cost of living crisis

Black Friday Cyber Monday saw loyalty and lifetime value hold fast despite the cost of living crisis, with consumers seeking the opportunity to benefit from loyalty rewards and alternative incentives, according to data released today from the loyalty and engagement platform, LoyaltyLion.

LoyaltyLion’s data reveals a 123 per cent surge in rewards claimed by customers this BFCM and a 103 per cent rise in points redeemed compared with the average weekend.

The findings also show that loyalty programme members were a great source of cost-effective acquisition over BFCM, with a 96 per cent increase in the number of customers who visited a store as a result of a referral compared with a typical weekend, and three times as many referred customers making a purchase versus the weekend average.

LoyaltyLion’s pre-BCFM research showed that free shipping would play a key role in purchasing decisions; this appears to have been the case, with twice the number of free shipping rewards being claimed compared with a typical weekend.

The key sales period also proved to be a critical opportunity to engage with customers via email, with 44 per cent more loyalty emails opened than during a regular weekend.

When comparing the days, the data reveals that Friday appears to be the biggest shopping day for returning shoppers, with 34 per cent of rewards claimed across BCFM taking place that day, versus 25 per cent on the Monday, and 22 per cent on the Saturday. Loyalty programme engagement, however, was the greatest on the Monday, with 32 per cent of all loyalty programme activities completed on the Monday, compared with 23 per cent on Friday, 20 per cent on Saturday and 24 per cent on Sunday.

Charlie Casey, CEO at LoyaltyLion, comments: “It’s crucial that retailers act fast to re-engage new shoppers in the critical post-BCFM sales period – through Christmas and beyond – to increase CTLV, secure a second purchase and increase the ROI on what has been invested to engage and acquire them.

“It’s reassuring to see customers already part of a loyalty programme making the most of their existing brand relationships and enjoying the points and rewards they’ve earnt. Brands should prioritise nurturing these crucial relationships with existing customers by continuing to offer them rewards that keep them coming back for more.

“Prior to Black Friday this year, our research revealed that consumers would shop around for the best deals, returns, and shipping policies. It’s great that so many shoppers are in fact re-engaging with brands they know and trust, and are continuing to participate in loyalty initiatives.”

Share

Twitter Facebook LinkedIn WhatsApp

Related News


Crunch time for BNPL

Sign up to receive our newsletter