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BizReport : Loyalty Marketing : May 29, 2017

Study finds loyalty points goal-setters more satisfied

Redemption continues to be a sticking point for many loyalty programs. In fact according to one new report, club members who redeem their points are 2x as satisfied as those who do not, and yet about 20% of loyalty club members have never redeemed their points.

by Kristina Knight

Researchers also found that loyalty program members who set redemption goals (66%) show higher program satisfaction than those who haven't set redemption goals. The Loyalty repot 2017 from Bond Brand Loyalty also shows more than half (57%) of program members don't know their loyalty balance, and just over one-third (38%) don't know the value of their program points.

These numbers are so important because experts have seen a steady influx of loyalty program members, but overall satisfaction with programs remains flat at just over 40%. Because overall satisfaction with programs has been tied into points redemption, and because so many don't know their points balances or the value of their points, this points to brands needing to do a better job explaining what their program offers to consumers.

"Consumers love loyalty programs and continue to join more every year, but active engagement rates have remained flat in the past 4 years, indicating that there's a tremendous opportunity to evolve "same-old" programs to ensure members' expectations and needs are being met," said Bob Macdonald, President and CEO of Bond Brand Loyalty. "Today's hyper-informed consumers expect personalized and shared interactions delivered through a combination of human and digital experiences. By engineering the program with every asset of a brand's loyalty ecosystem and making adjustments to differentiate the member experience, brands can improve engagement and substantially increase program performance for gains in lift, retention and lowered marketing costs."

Other interesting findings from the report include:

• 81% of consumers say loyalty programs increase their overall brand loyalty
• 73% of consumers say they recommend brands with loyalty programs
• 22% of program members 'believe they are treated better' than non-program members
• 27% of program members 'believe their experience is steady across platforms'

The full report results can be found here.

Tags: advertising, Bond Brand Loyalty, loyalty marketing, loyalty marketing trends, rewards marketing

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