Loyalty programs are a tremendously popular and effective way to successfully enhance the customer experience. As a marketing strategy, it can significantly help attract and retain customers throughout almost any industry. That is, however, if the program is executed effectively and supports a relevant design that speaks to the modern habits of consumers. Far too many brands seem to be neglecting this concern and, as such, they are in danger of becoming irrelevant or even obsolete.
One way to avoid this fate is to begin moving past old customer engagement mechanisms such as plastic loyalty cards, and more toward innovative digital designs that effectively leverage mobile and social technologies.
This was one of the key findings from a new research report by Foolproof, a global experience design agency that helps major bands make a difference in the lives of their customers.
Simply put, the novelty of using a traditional loyalty program card is wearing off for most UK consumers. Furthermore, concerns over data privacy are also growing. These concerns, combined with a lack of wallet space, have put the traditional loyalty program market in danger of becoming oversaturated.
The good news, though, is that Foolproof reported that most UK consumers still enjoy loyalty programs. But they are ready for a more intuitive and innovative approach that more effectively leverages smartphones and digital devices. UK customers now prefer the superior rewards delivery mechanisms, regular reminders and real-time engagement that such devices can offer.
“This survey clearly shows that the current state of the loyalty market has some serious issues that need to considered by brands, if they want to build a loyalty initiative that has a chance of standing the test of time,” said Peter Ballard, Foolproof Founding Partner. “Over the last 5 years, our research has shown that consumers have adopted multi-channel shopping faster than brands have adapted to it. Shoppers are already using smartphones in-store, and the fact that 50% said that they would be more like to use loyalty initiatives more if they were all housed on a mobile, shows the opportunity for brands to capitalize on this behavior."
The Foolproof report, which surveyed 1000 UK respondents, also showcased a number of other revealing findings. Among them, it found that:
• 85% had some kind of loyalty card in their wallet
• 65% of respondents admitted to turning down additional cards, and 35% said it was because they had no more wallet space
• 50% of people said that they would be more likely to use loyalty initiatives more if they were all mobile
• 48% of people said that they use mobile loyalty apps regularly (at least once a week)