July 31, 2023

Why You’re Not Spending Enough on Your Loyalty Program

6 Numbers to Prove You’re not Spending Enough on Your Loyalty Program.

Jason McCann

Managing Director, Creative

6 Numbers to Prove You’re not Spending Enough on Your Loyalty Program.

The economy is still tight, media costs are rising, and lots of brands seem to be taking it out on their current customers by devaluing loyalty points and making them work harder for benefits.

Some companies view their loyalty program as an expense on the balance sheet, not an asset. Smart brands will reverse that thinking and invest money, time, and creativity into their current customers.

Here are six numbers to bring the need for investment into sharp focus:


It can be up to 25 times more expensive to acquire new customers than keep current ones. So spending on smart initiatives with high perceived value to keep your current customers happy is smart because you spent so much to earn them in the first place.


On average, people are members of about 16 different loyalty programs, but are active in just six of them. That’s how hard your app has to work to make it onto someone’s phone. Investing in digital product design from apps to POS systems is critical to a frictionless customer loyalty experience.


83% of people trust recommendations from friends and family more than advertising. Your customers will always be the brand’s best advocates, so investing in loyalty and acquisition are actually one and the same.


80% of consumers are more likely to make a purchase when brands offer personalized experiences. So, you can draw a pretty straight line between increased revenue and you investing in the technology to analyze and act on all the information your customers are sharing with you. You can even have some fun and win awards if you do it right.


Email isn’t the only channel for CRM, but it might be the most effective. Litmus calculates that for every $1 spent on email brands get $45 back – that’s a ROMI of 4500%. Companies need to stop thinking about channels and focus on handheld experiences. Customers don’t differentiate between apps, emails and mobile sites-- to them it’s all just your brand. And no matter how companies organize internally, you build loyalty by focusing on the customer.


Since the launch of their loyalty program last year, McDonald’s stock has risen about 15%. There are other reasons for that, but the loyalty program is a big one.

These numbers should make all of us ask if we’re investing the right amount of time and resources into understanding what keeps customers connected to our brand and coming back for more. It’s more than just good manners, it’s good business.