$100 Billion of Unredeemed Loyalty Points
Bond Brand Loyalty just released its seventh annual consumer loyalty report and we have summarized the findings. The most shocking fact revealed from The Loyalty Report 2017 is that customers are sitting on $100 billion of unredeemed loyalty points. Imagine if they were all redeemed at once! Our summary spotlights three areas that merchants can focus on to improve the success of their loyalty programs.
Customer Experience is Key
The report reveals that customer experience is more important than the rewards received. Program experience ranked first with 23% followed by rewards and redemption at 18%. Merchants can buy down the rewards offered by providing a better experience tailored to members’ specific needs, i.e. add special perks and personalized offers. This will not only increase member satisfaction, it will also enable merchants to differentiate themselves and drive active participation. It represents an opportunity for merchants to reduce the cost of rewards and increase program success by enhancing customers’ experiences.
Stand Out from the Competition
On average, loyalty program memberships have increased to 14 per person with most people actively participating in only 7 programs. This indicates that people are willing to sign up for programs; however, their capacity to be actively engaged with programs is limited. With loyalty programs competing for members’ attention, merchants must provide more personalized rewards, adopt new technology, enhance communications, and adapt their programs to keep customers actively engaged. Member satisfaction with loyalty programs has remained steady at 46%. If a merchant increases satisfaction it will help the loyalty program by one that customers chose to actively participate with.
Importance of Effective Communications
The study indicates that 57% of members would like to interact with loyalty programs via their mobile devices. It also states that 55% of new members enroll online versus 32% who enroll in store. There is a need for enhanced communications since 57% of members do not know their points balance and 38% are unaware of their points value. By Increasing effective communications including utilizing mobile and online technology, merchants will improve the customer experience, increase program satisfaction, and reap results.
The Loyalty Advantage
The report highlights the advantage of loyalty programs. The permission-based nature of loyalty offers something that other marketing does not. It provides access to valuable customer information and enables merchants to drive customer behavior by offering attractive rewards and experiences that keep customers coming back. 81% say that loyalty programs make them more likely to continue doing business with a brand.
Contact Factor4 at email@example.com or 484-471-3963 to learn how you can increase the success of your Loyalty Program while reducing the overall costs. Please follow Factor4 on LinkedIn, Twitter and Facebook to stay educated about gift and loyalty programs.
Click here to read an executive summary of Bond Brand Loyalty’s The Loyalty Report 2017: www.bondbrandloyalty.com/loyaltyreport