New Study Shows Impact of Loyalty Programs

Loyalty programs essential to developing relationships with customers.

June 04, 2014

TORONTO, Ont. – The latest annual Loyalty Report was released this week by Bond Brand Loyalty (formerly Maritz Loyalty Marketing), highlighting changes in consumer motivations and habits.

The Loyalty Report surveyed more than 6,000 people to uncover insights on brands and loyalty initiatives. The study included industry verticals such as retail, consumer packaged goods, banking, travel and hospitality. The primary findings underscore a shift in the marketplace with regard to brand-aligned programs, and the increasing importance and relevance of non-monetary rewards.

“For customers who deem the loyalty program is part of their relationship with the brand, non-monetary benefits become almost twice as important to them the longer they're with the program,” said Scott Robinson, senior director, loyalty design and solutions, in a press release. “With less dependency on monetary means of reward, it becomes even less expensive to hold on to a customer.”

“Consumers are now making a shift to view loyalty as a relationship with a brand and not just a way to get a return,” said Robinson.

According to the report, the three top-rated consumer programs in terms of satisfaction were Amazon Prime, Target REDcard and Cabela’s Club Rewards.

Other findings from the survey include:

  • Survey respondents are enrolled in 10.9 loyalty programs, yet are active in only 7.8 of them. Approximately 80% of respondents said, “programs are worth the effort of participating” and 71% claim that programs are part of their relationship with the company. Notably, almost one in three customers said they wouldn't be loyal to a brand if it weren't for its loyalty program.
  • When it comes to communicating through loyalty programs, 90% of respondents want to receive communications from the program in which they are enrolled, yet only 46% of them deem these communications relevant. Just over 70% of respondents wanted to engage with brands through a smartphone or tablet, yet still today many brands are behind with mobile versions of their programs.
  • And, not to leave Millennials out of the mix, they are most likely (68%) to modify when and where they buy in order to maximize the benefits they receive from loyalty programs.
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