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Consumers Crave Variety in Their Loyalty Programs Published-Jun 8, 2015
Variety, it seems, truly is the spice that motivates consumers when it comes to interacting with a loyalty program. Considering American’s cultural diversity and love of new experiences, it’s no surprise that the loyalty programs that perform best are those that use multiple channels to interact with members.
 
That’s one of the interesting revelations to come out of Forrester Research’s study, “Elevate Engagement to Unlock the Potential of Your Loyalty Program.” Deluxe commissioned Forrester to conduct an online survey of 150 marketing directors and brand managers in leadership roles in their organizations’ loyalty programs. The goal was to measure how effectively loyalty programs drove engagement with their customers.
 
Greater channels drive greater engagement
 
We found that loyalty programs that incorporate a greater number of channels – nine to 13 – consistently report complete success in driving purchase frequency, spend, brand advocacy and engagement. Those with eight or fewer touchpoints report less satisfaction and success.
 
A higher number of channels also prove to be more effective in driving brand engagement and advocacy. There were fairly compelling examples that shine throughout this report:
 
  • Creating Advocacy: Thirty-seven percent of program managers whose rewards offerings incorporate nine to 13 channels say they’re successful at creating advocacy. Meanwhile, just 10 percent of those with fewer than eight channels are successful.
  • Driving Engagement: Forty percent of the higher-channel programs are successful at driving engagement while less than half with fewer than eight channels are successful.
 
Successful loyalty program managers are engaging with consumers through a variety of channels, both digital and traditional. A mix of email, program web portals and company websites, mobile channels like apps and messaging, and social media, alongside more traditional channels like direct mail, call centers and kiosks appear to generate the highest levels of success for programs. Mobile websites, apps and messaging appear to generate significantly higher levels of engagement; 65 percent of marketers who use mobile apps report satisfaction with their program, while just 25 percent of dissatisfied decision-makers use mobile apps.
 
The number of channels, however, isn’t the only factor in satisfaction. The variety of channel types is also key. Loyalty programs that don’t produce satisfying results often fail to adequately balance traditional, digital and in-person channels, instead leaning more heavily on one or the other type of channel to the detriment of the others – and the overall program.
 


Sourced By: loyalty360.org

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