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BizReport : Loyalty Marketing : May 16, 2013

Mobile the boost loyalty programs need

The latest Loyalty Report from Maritz Loyalty Marketing found that almost half of loyalty program members have stopped participating in one or more programs over the past year. Using mobile apps to engage consumers in loyalty programs could be the way forward.

by Helen Leggatt

The average consumer is enrolled in 7.4 loyalty programs, found the latest Loyalty Report from Maritz. However, despite 71% of members saying they have room for more cards, they are only actively engaged in 63% of programs they are currently enrolled in.

"Our study revealed that 47% of members have stopped participating in one or more programs in the past year. This number is disconcerting for program operators, yet of even greater concern is that only seven percent of these defecting customers actively defect - meaning, they actually formally request to leave a loyalty program," said Scott Robinson, senior director of loyalty consulting for Maritz Loyalty Marketing.

"Given the high percentage of passive defection, it is paramount that loyalty marketers proactively identify the early warning signs of disengaged members."

Consumers want to be engaged by their loyalty programs, across more than one channel. Almost all (94%) of the surveyed member want communications from their loyalty programs and almost half (46%) want those communications to come via at least 3 channels, mobile being one.

Of the 6,000 U.S. consumers surveyed, three-quarters (73%) expressed interest in using their mobile device to interact with loyalty programs and 91% would likely download an app for a program they enrolled in.

Image via Shutterstock

Tags: loyalty marketing, loyalty program, mobile apps, mobile marketing

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