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BizReport : Loyalty Marketing : September 27, 2016

Study: Personalization important for rewards

Sending a loyalty or club member a reward that isn't personal - or relevant - to them is not only a bad idea, it could impact how that shopper views the brand overall. That's the word from new Virtual Incentives data which found that for 56% of those surveyed personalized incentives/rewards made them think more highly of the brand in question.

by Kristina Knight

As to what types of personalization are most important, researchers found that most (63%) prefer rewards based on their purchase history while less than one-quarter (24%) want location based incentives. Only 23% preferred name-only personalization.

Jonathan Price, CEO of Virtual Incentives, said, "The information we gathered for this study is vital in helping brands make informed decisions when it comes to incentivizing their target audiences. After all, we want the reward or incentive moment to truly resonate and create an engaging moment with the recipient - that means we need to be educated on what different consumer groups are really looking for when it comes to incentives."

Other interesting findings from the report include:

• 2 in 5 report receiving personalized rewards
• 16% found personalized rewards 'creepy', more than half found personalized rewards 'unique/caring'
• Most report personalized rewards increase their brand trust
• 1 in 4 say personalizing rewards is a privacy violation

The Virtual Incentives study was conducted in association with Alter Agents, Voxpopme, and MindField Online.

Tags: ecommerce, loyalty marketing, personalization, personalized rewards, Virtual Incentives

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