According to the recent customer loyalty research study ‘for love or money 2015’, 16% of program members have purchased items they did not need in order to earn or maintain program benefits.This jumps to 26% for men under 45yo.
A powerful loyalty program, one that has the mechanisms to motivate members to buy more, and more often, provides an opportunity to drive incremental revenue from impulse purchases.
Do the financials:
Number of members in your program x 16% impulse purchases x ave sale of impulse purchase = incremental revenue!
Scenario: 100,000 members x 16% = 16,000 impulse purchases x $85 (let’s say ave sale of impulse purchase) = $1,360,000 x profit margin = profitable revenue
There are many other levers you have to drive a profitable loyalty program, and a hidden profit driver are impulse purchases.