Study: Loyalty program members worth more

Researchers looked at merchants across the US, and found that the biggest challenges facing retailers with loyalty programs were technology, specifically mobile and digital program tech, (40%) and keeping up with competitor programs (33%), but that most (71%) believe their program is already differentiated from competitor programs.

"Today's customer loyalty programs are an increasingly expensive, complex and expansive business that extend beyond the marketing team into the entire organization," said Farrell Hudzik, managing director of Accenture Interactive's Global Loyalty and Rewards practice. "Given that loyalty program members generate significant incremental revenue compared with non-members, retail loyalty program leaders must anticipate future growth trends and capture the opportunity to differentiate in an increasingly fragmented marketplace."

Other interesting findings from the report include:

• 97% report their program has C-level support
• 45% are focused on membership growth
• 42% focus on member transaction share
• 36% focus on number of yearly transactions

"As with nearly every other industry, digital technology is transforming how retailers are interacting with their customers, suppliers and other partners," Hudzik said. "The success of any good loyalty program hinges on the ability to identify and understand one's customers and then provide them with a seamless experience through multiple touchpoints. For a retailer to set itself apart with a compelling and accessible loyalty/rewards program, its marketing department must have the total commitment of the C-suite to ensure that it gets the resources necessary to develop leading-edge analytics, digital and other technological capabilities."

Tags: Accenture Interactive, loyalty marketing, loyalty program trends, rewards programs