RSS feed Get our RSS feed

News by Topic

BizReport : Loyalty Marketing : August 27, 2009

Report: The Case for Revamping Rewards Programs

Over the past few years, loyalty programs have been said to be the saviors of online and offline retailers. A new study tosses cold water on that thought. According to Direct Antidote, 68% of consumers find some loyalty program content to be non-relevant to their needs.

by Kristina Knight

loyaltyone.gifSpecifically, consumers say the communications from loyalty programs - direct mailings, email messages or messages through social networks - are not relevant to their needs. This should be a huge red flag for most marketers, even those running seemingly popular reward programs.

This study finds that just under one-third (32%) of consumers rate reward program communications with an '8' on a scale of '1' to '10' for relevancy, 68% give loyalty program communications a score of '7' or under. Although rewards programs regularly offer special earning offers, program information, coupons and other benefits, consumers report these aren't always relevant. Instead of offering traditional reward programs, the study suggests a slight overhaul to give consumers something different.

The study suggests:

• Creating trendy or 'value of the times' offers - including 'green' offers
• Partner with other brands to drive cost down and value up
• Search for other ways to discover what is or is not relevant to your list

Surprisingly, the study finds that older consumers are least likely to find rewards program communications relevant while younger consumers - Young Adults or Millenials - are most likely to find such things relevant and useful.

"The stats are indicators that the loyalty business enjoys appeal across the span of demographics. As Baby Boomers move from workforce to retirement, there is great opportunity to engage these veteran loyalty players with communications that appeal to their new lifestyle. At the polar opposite, fostering engaged, loyal customers within the Young Adult demo means approaching them on emerging channels," writes Di Cullen, president of Direct Antidote.

Tags: brand loyalty, Direct Antidote, loyalty, loyalty marketing, LoyaltyOne, rewards programs

Subscribe to BizReport

  • prior comment must have hit a nerve. ;)



Copyright © 1999- BizReport. All rights reserved.
Republication or redistribution of BizReport content is expressly prohibited without the prior written consent.
BizReport shall not be liable for any errors in the content, or for any actions taken in reliance thereon.