Would people pay to join a loyalty program?
Well, the answer to that question appears to be millennials (ages 18-35), the most sought after age group among loyalty marketers.
According to a new survey from LoyaltyOne, millennials are much more open-minded than any other population segment about investing in a loyalty program membership.
Here are some key takeaways from the survey:
- 62% of respondents said they’d consider joining a fee-based rewards program if their favorite retailer offered one.
- Among millennials, this number rose to 75% of 18-24 year-olds and 77% of 25-34 year-olds saying they’d consider joining a fee-based rewards program.
- 65% said customer rewards are worth paying for if relevant to their needs.
- Millennials, again, rated this even higher with 79% of 18-24 year-olds and 76% of 25-34 year-olds saying relevant rewards are worth paying for.
- Nearly half (47%) said rewards in fee-based programs are better than rewards in free programs
- A significantly larger number of millennials - 61% of 18-24 year-olds and 54% of 25-34 year-olds – said fee-based rewards are better.
Earlier this month Walmart disclosed details of its new $50 per year fee-based delivery program called ‘Shipping Pass,’ which is widely viewed as a competitor challenge to Amazon Prime with its $99 per year fee. Jet.com is another emerging membership-based shopping club promising low prices at a $49.99 fee.
Here are some more takeaways from the survey:
Of the respondents who already participate in fee-based loyalty programs, 69% said they were enticed by free shipping, followed closely by special discounts at 67%
Women (67%) are slightly stronger than men (64%) in their belief that rewards are worth paying for
When asked which category would be most appealing if compelling benefits were available through a fee-based program, respondents ranked Grocery and Mass merchandise highest (35%), followed by Credit Card rewards (26%), Specialty Retail (13%), Travel (18%) and Restaurants (9%)
32% of 18-24 year-olds and 34% of 25-34 year-olds said they have never been offered membership in a fee-based program, versus 25% of the general population.
The survey results are based on an online survey in May 2015 of 1,005 American consumers.