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Find out about the latest loyalty industry trends and consumer attitudes
Loyalty programs remain a powerful strategy for companies looking to build relationships and lifetime value with customers, but the industry is evolving and there are challenges ahead. While loyalty program membership has never been higher in the U.S. with 3.8 billion memberships, according to a 2017 Loyalty Census, more than half of them (54%) are inactive. A total of 4,513 people across the US and Canada were interviewed for this Census, which stirs in additional research on loyalty programs to unveil some intriguing revelations.
What do people want?
The top three reasons people gave for active loyalty program participation were ease of use, easy to understand, and great discounts. Not surprisingly, the study mentioned the importance of easy access to loyalty programs via smartphones and other mobile devices to clearly see rewards information.
This chimes with our own CodeBroker Mobile Loyalty Study of 1,207 U.S. consumers, which found that 71% of respondents said they would be more likely to use their loyalty cards if they could access cards and rewards on their smartphones and 70% said they would use a mobile version of their loyalty cards if they didn’t have to sign into a website or download an app.
Mobile is a platform with several distinct channels and what appeals to one consumer may not appeal to the next – and therefore it is important to take an omnichannel approach. Ideally, loyalty programs should offer consumers multiple points of access including text, mobile web, mobile app, email, digital wallets and social media.
Being able to access loyalty program and offers on a preferred channel is important to consumers. Don’t force them in one direction, but rather cater to their needs. It’s also worth noting that an omnichannel approach leads to an average basket size that’s 13% higher and 11% more profitable, according to an EKN mobile loyalty study.
Why people leave loyalty programs
Respondents to the Loyalty Census on the question as to why people abandon programs broke down as follows: