Loyalty Powers Email Marketing ROI

Email marketers can learn three key lessons about loyalty programs from GameStop's PowerUp Rewards, which today celebrates its five-year anniversary.

1. Loyalty Programs Increase Email Marketing ROI

GameStop announced today that it had accrued 32 million loyalty members, who now account for nearly 75% of all GameStop sales. This means the company's loyalty members spent just under $7 billion in 2014, considering that GameStop reported their 2014 total global sales to $9.30 billion.

When combined with email marketing, loyalty programs can drive customer engagement and sales. Loyalty-powered emails increase ROI by more than 50% when compared to regular promotional content, per  Salesforce and 500 friends.

Three out of four consumers admit to buying products and services from emails at least once a month, according to a recent BlueHornet Study. Some 23% t of consumers buy items advertised in emails multiple times a month. Almost half (44%) of respondents said they were more likely to purchase an item after receiving an email offer, and 35% said email marketing influenced their 



2. Consumers Want To Be Rewarded

PowerUp Rewards members receive points that are redeemable for rewards, which include video games, gaming gear and studio meet-and-greets.

Consumers want to be rewarded for their loyalty and there are over 3 billion U.S. loyalty program memberships. This is a 26% increase since 2013, according to a COLLOQUY report.

A global survey by Aimia reported that 85% of consumers admit to being a member of at least one customer loyalty program.

Loyalty programs also drive email marketing list signups. They also incentivize consumers to shop and rewards returning customers. Returning customers will on average spend 67% more than a first-time customer, according to Bain. Emails offering free shipping (54%) or a discount (53%) were most likely to incentivize online shoppers, according to UPS and comScore.

3. Be Digital-Savvy

GameStop's Power Up Rewards program has a mobile app downloadable for both Android and iOS devices, which allows program members to easily access their account information and browse the PowerUp Rewards catalog of featured products.

A mobile app empowers marketers to connect with customers on the go, and is an especially useful tool for connecting with younger customers. 33% of mllennials track rewards via mobile apps, according to a recent study by Excentus.

Utilizing digital channels is also key to keeping consumers happy and loyal. Almost 90% of consumers have a negative sentiment towards customer loyalty programs, according to a recent report by Capgemini Consulting. Many respondents cited a lack of digital awareness as a leading factor, and 33% said that a lack of a seamless multichannel experience was a factor in their negative opinion of loyalty rewards programs.

An omnichannel, mobile-friendly approach is especially true for email marketers, considering that more than half of all emails are read from a mobile device.

Retailers should incorporate loyalty rewards into their email marketing to boost sales and loyalty.

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