In today’s world of data collection and loyalty cards it’s a mystery to me that spirits, wine and beer brands, (brands) don’t have a better understanding of what you, the consumer means to them. They give lip service to knowing you. However, they can’t improve something, i.e. a relationship without measuring it.

Let us start with a basic definition.

Description: CLTV is the value a customer contributes to your business over the entire lifetime at your company. It is a very important metric and is used while making important decisions about sales, marketing, product development, and customer support. From Economic Times.

In February 2015, Nielsen fielded an English-only survey of more than two thousand adults in an attempt to determine which alcoholic beverage drinkers are the most open to trying new brands—beer, wine or spirit drinkers.

It appears that those who drink wine are the most brand adventurous—19% have bought 10 or more wine brands in the past year. Comparatively, only 15% of beer drinkers and a mere 5% of spirit drinkers have tried the same number of brands. Meanwhile, spirit drinkers were most likely to stick to their favorites: 60% of spirit drinkers, 48% of beer drinkers and 43% of wine drinkers have purchased only one to three brands of their alcoholic beverage of choice in the past year.

Forbes Contributor H.O. Maycotte, stated in 2015,  “A recent Entrepreneur article called lifetime value one of the most important metrics in business, mainly because it can give you an idea how much repeat business you’re likely to get from someone. The article also referred to it as one of the easiest metrics in business. However, according to an Econsultancy study, only 42% of companies say that they are able to measure customer lifetime value.

Why is LTV such a challenge for such a large percentage of companies? The Econsultancy report states it’s in large part because so many organizations are operating in disconnected silos and lacking in integration, making it difficult for them to manage LTV. As someone who runs a business that’s devoted to helping companies extract as much value as possible from all the customer data that’s available to them, that struck a chord with me. I truly understand how problematic silos can be, and believe that a unified, coherent approach to data and operations is an essential part of running a business.” From https://www.forbes.com/sites/homaycotte/2015/08/25/customer-lifetime-value-the-only-metric-that-matters/#41b0cc393876

At the heart of CLTV or consumer lifetime value is loyalty. How to initially launch the relationship, foster it, reward it, and then continue to make people feel special and a part of something bigger than themselves. For some incredible stats on loyalty programs you’ll like not find a better resource than this one. http://blog.accessdevelopment.com/customer-loyalty-statistics-2016-edition#lmktg

Here are some highlights:

Using Shared Spirits app2016 Loyalty Program / Loyalty Marketing Statistics

  • 80% of Gen Z consumers are willing to sign up for loyalty cards in exchange for deals/discounts (Interactions)
  • 85% of loyalty program members prefer interacting with their favorite loyalty program online (Collinson Latitude)
  • 63% of loyalty program members believe having a wide range of rewards and offers is the most important aspect of a loyalty program (Collinson Latitude)
  • 74.17% of women said they would refer a friend to a loyalty program that they participate in compared to 67.05% of men (Crowdtwist)
  • 76.82% of women and 73.84% of men are likely to shop with a brand that has a loyalty program (Crowdtwist)
  • While 63% of consumers participate in payments rewards programs, only 19% use rewards programs regularly (Accenture)
  • 74% of Baby Boomers, 58% of Gen X and 41% of Millennials claim they would be encouraged to spend with a brand that has a loyalty program (ICLP)
  • 29% of Millennials rated “too many programs to keep track of” as one of their top three things they dislike about rewards programs vs. 17% of Gen X’ers and 20% of Boomers (Vantiv)
  • Points accumulated for free merchandise or travel (47%) and automatic discounts at time of purchase (41%) are the top reasons for signing up for rewards (Vantiv)
  • 43% of consumers say rewards programs require too much spending to reach the next level of status, 36% say the points or rewards expire before they can use them, and 33% say it’s hard to use the rewards because of all the restrictions (Vantiv)
  • 33% of Millennials dislike rewards programs because there are too many cards to carry (Vantiv)
  • 70% of consumers do not sign up for a loyalty program due to the inconvenience and time required to complete registration (3Cinteractive)
  • 72% of consumers said they would be more likely to sign up for a loyalty program if the process was simplified by text message (3Cinteractive)
  • 19% of Marketers listed loyalty acquisition at the top of their list as a primary objective for 2017 (3Cinteractive)
  • Consumers said that savvy shoppers (34.5%), followed by credit card companies (27%), brands (26%) and wealthy people (12%) benefit most from customer reward programs (Colloquy)
  • 60% of consumers believe in their reward programs (Colloquy)
  • 76% of consumers said they plan to make no changes in their level of participation in reward programs in 2017, while 12% said they’d participate more and 12% said they’ll participate less (Colloquy)
  • 57% of marketers intend to increase their customer loyalty budgets in 2016 (CrowdTwist)
  • 57% of brands indicate that they will increase loyalty program budgets in 2017 (CrowdTwist)
  • 44% of digital marketers said they will somewhat increase loyalty budgets, and 13% plan to significantly (CrowdTwist)
  • 4% of digital marketers said they anticipate lowering investment in loyalty programs (CrowdTwist)
  • 38% of brands do not deem their current loyalty efforts as either a success or failure (CrowdTwist)
  • 26% of marketers that do not have formal loyalty programs are using informal methods to encourage loyalty (CrowdTwist)
  • 31% of marketers ranked “driving engagement” as the main focus of their loyalty program (CrowdTwist)
  • 88% of marketers say executing coordinated campaigns across channels is an important activity relevant to loyalty efforts (CrowdTwist)
  • To save money, some Millennials (45.1%) use coupons and loyalty points (CCG Consulting)
  • 48% of consumers cited SMS as their preferred means of receiving loyalty messages, followed by email (22%) and app notifications (20%) (3Cinteractive)
  • 21% of brand marketers are using SMS for loyalty program communications (3Cinteractive)
  • 28% of marketers reported using mobile wallet as their primary channel for loyalty messaging and 21% citing SMS and push notifications (3Cinteractive)
  • 84% of U.S. businesses use some form of non-cash incentive awards (Incentive Federation)
  • Non-cash sales incentive programs are present in three out of five businesses; non-cash loyalty programs are used in 45% of firms; 41% use non-cash channel programs (Incentive Federation)
  • Gift cards are the most prevalent form of reward in all programs, except customer loyalty. Trips and travel is most frequently used with sales programs and least often within customer loyalty. (Incentive Federation)
  • The top 3 mobile wallet items consumers have used the most are loyalty cards, coupons and boarding passes (Urban Airship)
  • 84% of Millennials and 80% of adults with household incomes of $60k+ are more likely to use mobile payments if loyalty rewards and discounts are automatically applied (Urban Airship)
  • If adults receive expiration reminders via mobile wallet, 64% are more likely to use the coupon (Urban Airship)
  • 67% of U.S. adults and 58% of U.K. adults are likely to visit a store if they receive coupon expiration reminders when they’re close to a store (Urban Airship)
  • One-fourth of respondents use their physical loyalty cards “sometimes” or “rarely” and one-third “always” use them (Urban Airship)
  • Top 2 reasons adults don’t always use their physical loyalty cards are not bringing the card (43%) and forgetting they are part of the loyalty program (40%) (Urban Airship)
  • 69% of adults are more likely to use their loyalty card if it’s on their phone (Urban Airship)
  • 73% of adults are more likely to join a loyalty program if points and rewards are automatically updated and immediately visible on mobile wallet loyalty cards (Urban Airship)
  • 94% of customers indicated that they would use mobile wallets more often if they were able to earn and redeem loyalty rewards through the platform (Points)
  • 63.7% of small businesses plan on using a customer loyalty program in 2016 (Belly)
  • Consumers belong to an average of 13.4 loyalty programs, but are active in only 6.7 (Bond)
  • 81% of consumers are more likely to continue doing business with brands that offer loyalty programs (Bond)
  • 75% of consumers say loyalty programs are part of their relationship with brands (Bond)
  • 44% of loyalty program members are satisfied (Bond)
  • 70% of consumers modify the when/where they purchase from in order to maximize points (Bond)
  • 67% of consumers modify the brands/companies they purchase from in order to maximize points (Bond)
  • 66% of consumers modify amounts they spend to maximize points (Bond)
  • Over 20% of loyalty program members have never made a redemption (Bond)
  • Non-redeemers are 2.3 times more likely to defect than recent redeemers (Bond)
  • 39% of loyalty program members feel that their program fits very well with what they expect from a brand (Bond)
  • 73% of loyalty programs members are more likely to recommend brands with good loyalty programs (Bond)
  • 33% of consumers use their smartphones to sign up for a rewards program after making a purchase on their smartphone (Nielsen)
  • 44% of consumers have between 2-4 loyalty cards, 25% have between 5-9 loyalty cards (Vibes)
  • 77% of smartphone users said mobile offers, exclusive content and special birthday messaging, have a positive or very positive impact on their brand loyalty (Vibes)
  • 66% of smartphone users would have a more positive opinion of a loyalty program if they could store and access information on their smartphone in a mobile wallet app (Vibes)
  • 73% of smartphone users are very interested or somewhat interested in saving loyalty cards to their smartphones (Vibes)
  • 31% of loyalty program members, but only 15% of all U.S. online adults, will use a brand’s mobile app (Forrester)
  • 69% of Millennials belong to a retail loyalty program and 70% of those are happy with the program (Blackhawk Network)
  • Millennials are 2.2 times more willing than boomers to pay a premium for products and services if they can also earn loyalty and reward points (Bond)
  • 45% of consumers prefer rewards in the form of prepaid debit and gift cards (Blackhawk Network)
  • 59% of Millennials value loyalty programs that offer special services like concierge (Bond)
  • 70% of consumers find the option to redeem points instantly on credit card purchases appealing; 43% are willing to pay a premium for the convenience (Bond)
  • 23% of shoppers use mobile access to loyalty/rewards programs (PWC)
  • 52% of loyalty program members would not be willing to pay a membership fee (48% would) (Maritz)
  • More than 45% of consumers say the opportunity to earn rewards is a primary driver for purchasing from a brand (Maritz)
  • 43% of consumers join loyalty programs because of the desire to earn rewards (Maritz)
  • 68% of female vs. 60% of male loyalty program members are interested in earning rewards for non-purchase activities (Bond)
  • 17% of loyalty program members say they joined out of love for the brand’s products (Maritz)
  • 5% of loyalty program members say they joined because of a shared identity with brand values (Maritz)
  • 3 billion loyalty cards will operate as mobile-only or be integrated into mobile apps by 2020, up from 1.4 billion in 2015 (Juniper)
  • 57% of members want to engage with loyalty programs on a mobile device (Bond)
  • 50% of loyalty program members don’t know if there is a mobile app to compliment their loyalty program (Bond)
  • 62% of women vs. 52% of men would like to engage with programs on a mobile device (Bond)
  • 57% of consumers are interested in using their mobile device to check their points balances, redeem reward points (55%), find a location/store (54%), and browse reward options (54%) (Bond)
  • 40% of millennials want to track/redeem rewards on an app (Software Advice)
  • 37% of millennials prefer receiving discounts for their loyalty program reward (software Advice)
  • Millennials are most incentivized to join a loyalty program based on how quickly rewards accrue (51%) and the variety of rewards available (38%) (Software Advice)
  • 50% of millennials stated they quit a loyalty program because rewards took too long to accrue (Software Advice)
  • 40% of millennials prefer to use an app to identify themselves as loyalty members (Software Advice)
  • 25% of cards downloaded to Apple Pay are store and loyalty cards (First Annapolis)
  • 57% of Midwesterners belong to a loyalty program that enables them to save on fuel, compared with 56% membership rates in the West, 52% South and 50% Northeast (Excentus)
  • 15% of Northeasterners are more likely to join a fuel savings rewards program based on a peer’s recommendation than consumers elsewhere (9%) (Excentus)
  • Rewards that help consumers save on the cost of gasoline ranked #1 in 2016 as the most popular loyalty program currency, with 37% of consumers preferring fuel discounts over credit card rewards, coupons, retailer points and instant discounts at the cash register (Excentus)
  • Consumers say they prefer fuel-saving rewards because they like saving money any way they can (39%) and they like earning rewards from everyday purchases made (23%) among a variety of retailers (Excentus)
  • 44% of Southerners say they join loyalty programs to save money any way they can, compared to 41% Midwest, 37% West and 33% Northeast (Excentus)
  • 67% of the affluent middle class value the flexibility to choose the rewards and benefits they are offered (Collinson Group)
  • 53% of young Millennials said reward programs are rigged, a 29% increase over the general population (Colloquy)
  • 37% of older Millennials said reward programs are rigged (Colloquy)
  • 59% of consumers say customer reward programs are not rigged, while 41% say that points, miles and cash back programs are rigged (Colloquy)
  • 82% of small businesses note that the purpose of their digital loyalty platform was to get customers to visit more often (Belly)
  • 32% of Executives believe referrals and recommendations from existing customers are the most important benefit of customer retention; driving incremental purchase from existing customers (19%); reduction of marketing costs (16%); increased revenue per customer over time (14%); predictable revenue (10%); and profitable revenue (9%) (Forbes/Sailthru)
  • 35% of media executives mentioned a lack of technologies to enable them to attain repeat or loyal customers (Forbes/Sailthru)
  • Brands that upped their spend on customer retention over the past one to three years drove a 200% higher chance of growing their market share (Forbes/Sailthru)
  • 45% of companies have seen an increase in customer loyalty as a result of investing in the customer experience (Avanade)
  • 73% of Marketing and IT decision makers agreed that customer loyalty is lost without a focused brand experience (Sitecore)

Why share the stats on loyalty? Again, loyalty leads to the growth in buying the product or service again.