Loyalty program member satisfaction is closely linked to redemption activity and the ease of tasks, according to the 2013 Maritz Loyalty Report. Overall, 65% of program members are satisfied with their loyalty programs.
But Scott Robinson, Senior Director, Loyalty Consulting & Solutions, for Maritz Loyalty Marketing, said during a presentation on Wednesday in Manhattan that some loyalty marketers rely too much on monetary means. The word “ease” was the key theme of the report as it pertains to member satisfaction – such as ease of redeeming for rewards, ease of tracking balance, ease of understanding how a specific program works, and ease of enrollment.
While Robinson said loyalty programs aren’t imperative, all marketers can spark more customer engagement through loyalty initiatives.
In the Financial Services category, the five key drivers of satisfaction are: meets my needs, ease of redeeming for rewards, quality of rewards available, total earning potential, and the number of ways to earn points.
In some program categories, including retail and airline loyalty, top-rated programs and the next highest-rated programs scored similarly on all key drivers of satisfaction. In these categories, the higher rated programs achieved that status due to their emphasis on secondary or differentiating drivers.
In many categories, communications methods/relevant communications were among the top five loyalty program drivers. Some other key drivers included ease of redeeming for rewards, ease of tracking balance, ease of understanding how program works, and the quality of rewards.
According to the Maritz report, loyalty program member satisfaction ranked as follows:
Entertainment: 75%
Financial Services: 73%
Grocery: 71%
Retail Programs: 63%
Airlines: 60%
Hospitality/Hotel: 58%
Robinson told Loyalty 360 that many marketers have embraced the notion of loyalty programs, but have not solved the execution side of the equation.
“There is a lag between intent and execution,” he said.
The report surveyed more than 6,000 consumers and captured program-level feedback from more than 30 national programs across six industry sectors – Retail Loyalty, Grocery Loyalty, Credit Card Loyalty, Co-Brand Loyalty, Travel, and Hospitality.