Australian study points to power of loyalty perks

A new Australian study commissioned by strategic marketing company Directivity and digital agency Citrus and conducted by First Point Research and Consulting  point to the power of shareable perks in marketing.

People love being able to share good news with their friends, especially with how easy it is to share socially on Facebook. Perks that once had to be shared word of mouth, through snail mail, or even through email, are now far more visible because they can be posted on Facebook walls for all to see.

Share the love

They named their study “Share the Love” and it found, “65% of members want to share their benefits with family, friends, or a charity—and if they could share, 70% would shop more often and 45% would spend more.” Some perks involve accumulating reward points, which can build up to large dollar and discount amounts. In fact, people become so attached to these points that “65% of members want to leave their rewards or points to someone else when they die.”

Passing reward points on

In fact, few programs allow reward points to be passed on to family members, so Directivity’s CEO, Adam Posner, said this may be a good way for companies to differentiate themselves. He explained, “Apart from the big programs which offer a community connection or the option to give points to someone else, generally it’s not a big feature of loyalty programs.”

Loyalty program turnover

On the flip side, people who join because of loyalty perks may also leave the brand because of dissatisfaction with the loyalty program. Not only will they look for another loyalty program, they’ll likely purchase from another brand altogether. The study found that a quarter of members have left or changed loyalty programs in the last few years because of difficulty redeeming points or unappealing offers.

“Loyalty programs are big business and a key touch point for a brand so marketers need to ask themselves: remove a quarter of your membership and what impact would that have on your brand?” Peter Noble, CEO of Citrus, said. “Make no mistake—if members have defected from a program they’ve defected from the brand.”

Card vs. mobile app

Loyalty programs were also found to do better when members were provided with an actual card rather than a mobile app. People like the distinction of pulling out a special card that sets them apart from the average buyer. The best bet might be to allow members to choose their own method, seeing as a third of members want both.

Pay per call marketing is one way of letting consumers know about your reward program. Companies then only pay their affiliates when a qualifying lead is generated. It’s a great way to make sure you don’t waste time on merely curious shoppers.

Source: Marketing Magazine

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