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BizReport : Loyalty Marketing : May 14, 2019

Study finds experience key to engaging loyalty members

Loyalty programs continue to build, drawing new members every day, but one new report indicates that rather than pricing or even product superiority, the brand experience is now key to engaging loyalty program members.

by Kristina Knight

New research out from Bond Brand Loyalty finds personalization is key to the overall experience because while only about 20% of loyalty program members report satisfaction with the personalization level, those brands that are personalizing well are seeing a lift in member satisfaction that is more than 6x higher than those brands who haven't optimized personalization.

Another key to improving loyalty programs and satisfaction? Take another look at potential partnerships. Most (60%) of loyalty program members surveyed said they were interested in loyalty program partnerships - things like gas companies offering miles for airline rewards.

"This year's report substantiates the experiential elements of a brand's program as the key to unlocking greater profitability," said Sean Claessen, Chief Strategy Officer, Bond. "It's the journey, not just the destination--when it comes to customer loyalty. The experience the program facilitates is what differentiates leaders from laggards. Personalized experiences, elements of game-science and strong brand partnerships--that deliver along the entire customer journey--are what make members more likely to increase spend, stick with and say good things about the brands they do business with."

Researchers further found:

▪ 46% of Gen Z and Young Millennials put loyalty cards "on file" with favored brands and about 1/4 (27%) save loyalty cards in their smartphone wallets
▪ 60% of survey respondents "are interested" in loyalty program partnerships
▪ Programs using gamification see 1.7x higher "enjoyment" rates

As a comparison, consumers reported in on their top loyalty programs and among the top programs were Amazon Prime, Hilton Honors, Domino's "Piece fo the Pie", and Netflix.

More data from The Loyalty Report 2019 can be downloaded here.

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

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