What Motivates SMBs to Join a Loyalty Program?

What drives SMBs to join loyalty or rewards programs? What encourages them to use the programs they join? And what is the effect of rewards programs on loyalty to the sponsor? To find out, we recently surveyed 500 U.S. SMB principals.

The top motivator to join a rewards program is cost savings, for all size groups. For very small businesses (VSBs, or those with fewer than 20 employees) and small businesses (SBs, with 20 to 99 employees), cash-back offers are second, followed by high reward value. For midsize businesses (MBs, with 100-500 employees), high reward value is tied for the most compelling aspect of a loyalty program, followed by easy reward redemption.

SMB Loyalty Program Motivators

Frequent and relevant rewards are the top inducement to encourage SMBs to use a loyalty program regularly, regardless of company size. The ability to track rewards easily, and personalized offers, are also compelling.  

SMB Loyalty Program Usage Motivators

We also wanted to know what effect rewards programs have on loyalty to the program sponsor. Almost half (45%) of VSBs say rewards programs increase loyalty somewhat or significantly, compared to 72% of SBs and 70% of MBs.  

Rewards Program Effect on Loyalty

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