According to a recent survey from Maritz Loyalty Marketing, the average consumer belongs to more than seven retailer or restaurant loyalty programs—and many of those consumers say they would they still be interested in joining more. The majority of the survey’s respondents said that they are only active in about one-third of the programs they belong to. However, 60 percent of respondents reported that they do modify their behavior when making decisions about when or where to buy so that they can get the most benefits for their money. Additionally, nearly half of the survey’s respondents said that they would buy different brands in order to get the most benefits from store loyalty programs.
70 percent of consumers suggested that they view loyalty programs as a way to build a relationship and to connect with a company. While
some consumers don’t use all of their program benefits, 80 percent of respondents said that loyalty programs are worth the effort it requires for them to participate.
Ultimately, marketers and small businesses must find new ways to keep customers engaged with loyalty programs in order to get an effective return on the investment. About half of all survey respondents said that they had stopped participating in one or more loyalty programs during the previous year. The survey data indicates that many consumers probably stop participating when they receive too many communications and marketing messages that aren’t relevant to their interests. Only 20 percent of survey respondents who felt they received too many irrelevant messages said they were satisfied with the programs. In contrast, 93 percent of respondents who felt they received relevant communications were satisfied with loyalty programs and small businesses.
To design an effective loyalty program, your business must think carefully about what types of promotions, offers, and communications will be most relevant to your customers. Many businesses create successful programs by offering individualized benefits or separate options for customers with different interests. Customers may choose to earn one of several different rewards or they may earn rewards based on their unique purchasing habits. Creating a personalized experience helps you to forge a stronger connection with your customers and may lead to deeper engagement and brand loyalty.
Red Crow Marketing can help your company create an effective marketing strategy that takes the unique needs and behaviors of your audience into consideration. To schedule your consultation, contact us here or call us at 417-889-1658 today.
A report on this study was originally published on Marketing Charts on May 9, 2013. You can read more about the study and its findings here.