Loyalty, Rewards, and Payments: The Keys to Driving Revenue

Creating a frictionless and delightful customer experience that combines loyalty, rewards, and payments can positively influence customers’ spending habits, the frequency of their purchases, and the average order value - ultimately driving revenue. Merchants can build customer affinity through combining loyalty and payments all within checkout.

‍

There is certainly no shortage of loyalty programs for customers to choose from. One study suggests that 90% of merchants focused at least a component of their strategy on customer loyalty.¹ But what merchants must truly solve is how to make those loyalty programs count to drive incremental spending from customers.

We all know that customer loyalty is essential for driving revenue - and the data shows. Industry research indicates that consumers who are part of a high-performing loyalty program are 80% more likely to choose the brand over competitors and twice as likely to recommend the brand to their friends.² To that same extent, one study shows that consumers in paid loyalty programs are 62% more likely to spend more on the brand and 59% more likely to choose the brand over competitors.³

However, driving loyalty is about more than just giving rewards to customers - true loyalty programs make customers’ lives better and easier. This requires thinking about the entire customer journey, including how customers engage with these programs and where payments fit into the mix.

Payments is critical to the consumer loyalty equation that all merchants must master. Loyalty and rewards programs are great, but if they are difficult to earn and redeem, customers won’t engage with them. Creating a frictionless and delightful customer experience that combines loyalty, rewards, and payments can positively influence customers’ spending habits, the frequency of their purchases, and the average order value - ultimately driving revenue.

Zage has built a white-label API-first payments and loyalty platform. With Zage, merchants can offer customers rewards such as cash, Bitcoin, AirPods, and more - fully funded by Zage and all within checkout. Inspired by the iconic Starbucks for Life and McDonald’s Monopoly games, Zage set out to create a rewards program that is fun, memorable, and keeps customers coming back.

Digital payments have made it easier than ever for merchants to integrate dynamic loyalty programs that combine customer loyalty with a good payments experience. Of course, integrating payments into these programs through the right payments partner is key to launching programs that stick.

‍

Want to learn more? Contact Zage today!

‍

Sources:

1. 2021 Loyalty Industry Data Study
2. McKinsey & Company
3. MIIT Sloan Management Review