What Makes a Successful Loyalty Program
Written by Patricia Orsini
Article from eMarketer
Loyalty programs have a serious retention problem. Consumers are quick to sign up, but quick to forget about a loyalty program once they get their initial discount. Members, overloaded with points, miles and free shipping offers, are not necessarily consolidating purchases with one brand in order to accrue rewards.
A January 2018 survey from Bond Brand Loyalty found that across most industries, less than half of loyalty program members in Europe, Latin America and North America are satisfied with their programs.
The companies most likely to offer loyalty programs—retailers, airlines, hotels, quick-serve restaurants, among other sectors—are simultaneously facing increased competition from digital upstarts that are better able to gain an understanding of consumers’ expectations and needs, and deliver on them.
A loyalty program can provide the first-party data needed to begin to understand those customers, but interactions after the initial sign up have to be strategic.
Article from eMarketer
Loyalty programs have a serious retention problem. Consumers are quick to sign up, but quick to forget about a loyalty program once they get their initial discount. Members, overloaded with points, miles and free shipping offers, are not necessarily consolidating purchases with one brand in order to accrue rewards.
A January 2018 survey from Bond Brand Loyalty found that across most industries, less than half of loyalty program members in Europe, Latin America and North America are satisfied with their programs.
The companies most likely to offer loyalty programs—retailers, airlines, hotels, quick-serve restaurants, among other sectors—are simultaneously facing increased competition from digital upstarts that are better able to gain an understanding of consumers’ expectations and needs, and deliver on them.
A loyalty program can provide the first-party data needed to begin to understand those customers, but interactions after the initial sign up have to be strategic.
Comments