Activity across all demographic segments is up, except for the Affluent segment, which remained flat at 96% participation. Participation by Millennials (age 18-25) spiked to 86.5%, up 11% since last measured in 2007 to represent the fastest growing demographic. Women and Seniors nudged up slightly, and consumers in French Quebec measured for the first time at 92.4% participation.
Loyalty marketing programs recognize and reward the best customers of a business. COLLOQUY’s study of loyalty perceptions examined trends in six consumer segments: General Population representing a statistically distributed sample of Canada overall; Affluent (heads of household with annual incomes of $125,000 or greater); Millennials or Young Adults (any respondent 18 to 25 years of age); Seniors (any respondent 60 years or older); Core Women (any female respondent age 25 to 49 with an annual income between $50,000 and $125,000); and French Quebec (those residing in French Quebec). COLLOQUY magazine and white papers are published by LoyaltyOne.
Coalition loyalty programs, like AIR MILES in Canada, Dotz in Brazil and Fly Buys in Australia and New Zealand are proving vital tools for consumers looking stretch household budgets in response to a challenging economy. Exactly 25.8% of survey respondents said that participation in coalition programs has become “more important” since the economy turned sour. Consumers found the value of coalition program participation in a recession higher than retail, financial services and travel rewards programs.
“We were already aware that Canada was a congested loyalty arena,” said COLLOQUY Editorial Director Rick Ferguson. “But to see a nearly 10% jump in such a market says that consumers are turning to rewards programs more than ever to offset economic woes. And the value of coalition programs in the eyes of Canadian consumers cannot be understated.”
Loyalty participation by Millennials has grown faster than any other demographic since COLLOQUY’s last benchmarking study in 2007. As mentioned above, participation rates in this demographic stand at 86.5, an 11% increase from two years ago. Comparatively, the same demographic in the United States reports a 58% participation rate.
The data reveals more intriguing information about this group and their perceptions about loyalty programs, including:
- Millennials lead all demographics in their views on the importance of coalition rewards programs during an economic downturn. Over one-third, or 35%, find coalition programs more important due to the recession.
- Millennials are the most likely group to shift their rewards redemptions to necessities due to the economy. More than 20% said that they shift from using points for luxuries or a saving strategy to necessities.
“Loyalty marketers have a once-in-a-lifetime opportunity to demonstrate program value to this next generation of consumers. Proving a value proposition in a time when the group needs it the most could prove priceless in fostering lifelong advocates,” added COLLOQUY Partner Kelly Hlavinka.
About COLLOQUY
COLLOQUY comprises a collection of publishing, education and research resources devoted to the global loyalty-marketing industry. Owned by LoyaltyOne, COLLOQUY has served the loyalty-marketing industry since 1990 with over 30,000 global subscribers to its magazine and www.colloquy.com the most comprehensive loyalty web site in the world. COLLOQUY’s research division develops research studies and white papers including industry-specific reports, sizing studies and insights into the drivers of consumer behavior. COLLOQUY also provides educational services through workshops, webinars and speeches at events throughout the world and is the official loyalty-marketing partner of both the Direct Marketing Association and the Canadian Marketing Association and a content provider to the American Marketing Association. COLLOQUY also operates the COLLOQUY Network, a global consortium of practitioners. COLLOQUY magazine subscriptions are available at no cost to qualified persons at www.colloquy.com or by calling 513.248.9184