Purchase Frequency: Customers who redeem points and discounts make an average of 2 purchases compared to just 1.2 purchases by non-redeemers. That's a substantial 67% increase in purchases per customer.
Repeat Customer Rate (Customer-Level Loyalty): Redeemers demonstrate exceptional loyalty, with a repeat customer rate of 50%, compared to only 10.7% for non-redeemers—a remarkable increase of 2.5X
Repeat Purchase Rate (Purchase-Level Frequency): Redeemers exhibited a repeat purchase rate of 65%, significantly outperforming the 12.3% of non-redeemers. This marks a 2X increase, clearly highlighting increased purchase frequency driven by loyalty participation.
These figures unequivocally demonstrate loyalty programs' impact on both customer retention and buying frequency.
Another key metric of interest is Average Order Value (AOV). Initially, we anticipated that discounts available to redeemers might negatively affect AOV. Surprisingly, our data revealed the opposite, redeemers had a 23% higher AOV compared to non-redeemers, underscoring the substantial purchasing power and upselling potential among loyalty-driven customers.
Finally, and perhaps most compellingly, revenue generation per customer among redeemers was an impressive 115% higher compared to non-redeemers, making loyalty program participants significantly more valuable to businesses.
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