Study shows consumers prefer combination of digital and traditional loyalty options
NASHVILLE, Tenn. (July 23, 2014) -- Adding a touch of digital to the traditional appears to be the best way for businesses to engage loyal customers.
According to a new study by TechnologyAdvice, customer loyalty program users are 59 percent more likely to subscribe to a program that offers a smartphone app. While those findings are in line with the continuing shift to mobile devices in everyday life, the study also revealed the majority of consumers are not yet interested in fully-digital loyalty programs.
“While it’s clear more consumers want some level of digital interaction, the numbers were roughly split between those who preferred fully-digital programs and those who favored traditional card-based programs,” said Cameron Graham, TechnologyAdvice’s editorial coordinator. “This leads us to believe most consumers see smartphone apps as a desirable feature, but may not want to use an app exclusively.”
The study, which surveyed more than 3,100 loyalty program users from across the US, also showed that consumers who enroll in at least one loyalty program are likely to seek out other stores that offer similar rewards. Respondents reported being 82 percent more likely to shop at stores that offered some type of loyalty program.
Saving money is the overwhelming reason that consumers enroll in customer loyalty programs. Nearly 60 percent of consumers cited receiving discounts as their primary motivation for participating in a customer loyalty program, while another 35 percent said they were most interested in receiving exclusive rewards.
Social recognition, meanwhile, is clearly not a desired feature. Only 14 percent of respondents said they would be more likely to use a customer loyalty program based around such rewards, while less than one percent of consumers cited it as their primary motivation for participating.
More information on this study’s results and methodology is available at TechnologyAdvice.com.
About TechnologyAdvice:
TechnologyAdvice is a market leader in business technology recommendations. The Nashville, Tennessee-based company provides free and unbiased research and analysis of IT options to simplify the purchase process and better connect businesses of all sizes with the products that best fit their specific technology needs.