With several major companies overhauling their loyalty programmes, 2012 looks like it will be the year when marketers ask if their loyalty programmes are doing enough.
New research from ICM reveals truths about why consumers are and aren’t using loyalty programmes
In a recent ICM study, we found that 86% of adults are signed up to at least one loyalty programme and 40% of adults are signed up to three or more. However, many admit to not using all the schemes they are signed up to; and a third of 18 – 24 year olds aren’t signed up to any loyalty programme at all.
There are several reasons why consumers don’t use all the schemes they are signed up to. For many, the rewards on offer just aren’t relevant or have stopped being relevant. However what’s interesting is that relevance depends on the sector the business is in. For example, if a mobile phone provider was to offer a reward, many would prefer to receive something that is not related to their mobile phone. A voucher to spend at a High Street store is much more appealing than free minutes, free texts or free mobile internet. As a contrast: if a supermarket was to give a reward, most would prefer offers or discounts to spend at that supermarket.
However, it’s not just the rewards that are important – but also the way in which they offered. Three quarters would prefer small guaranteed rewards on an ongoing basis rather than the chance to win something big in a prize draw.
Knowing what your customers want from a loyalty scheme and what will truly stand out will help turn today’s economic pressures into tomorrow’s long term business success. And with many not using all the loyalty schemes they are signed up to and a third of 18 – 24 year olds not signed up to any scheme at all, there is a huge opportunity for brands that can get it right.