According to the findings of new report from BIA/Kelsey shared with MMW on Tuesday, use of customer loyalty programs by small businesses (for delivering special offers and rewards for frequent customers) remains steady.
The new report is the latest in BIA/Kelsey’s ongoing study of the advertising behaviors of small and medium-sized businesses (SMBs).
Among those surveyed, 38 percent said they currently offer a customer loyalty program, with an additional 21 percent stating they will likely add such a program in the next 12 months. There was effectively no statistical change in this finding compared with the 2012 survey.
BIA/Kelsey finds that small businesses estimate 17.7 percent of their total business in the next 12 months will be generated by customer acquisition promotions such as discount deals, daily deals, coupons or similar offers.
These promotions, however, may or may not be aligned with a loyalty program.
“The data indicates solid interest and intentions in loyalty programs, which are becoming an increasingly important tool for customer retention,” says Steve Marshall, director of research at BIA/Kelsey. “Going forward, we believe the proportion of business generated from both loyalty programs and promotions will rise significantly, as SMBs increasingly tailor their offerings to frequent customers and specific customer segments.”
BIA/Kelsey will present findings from LCM – Wave 17 during a free webinar on Wednesday, Aug. 21. Webinar details and online registration are available here.