Source: Ad Age (adage.com)
Published by: Kate Kaye on June 3, 2014
Dove, Adidas and JetBlue get high marks for loyalty program satisfaction, according to a new report from Bond Brand Loyalty, which has changed its name from Maritz Loyalty Marketing. In its fourth-annual study of more than 6,000 consumers, the agency found that 69% of participants in loyalty programs are satisfied with them.
"There aren't too many brands without some sort of loyalty program in place," said Scott Robinson, consumer loyalty strategist at Bond.
Indeed, it appears that today's younger consumers have come to expect brands to offer incentive programs. Almost 30% of all studied said brand loyalty requires such a program. A CMO might react negatively to the news that only a third of customers were loyal to the brand, suggested Mr. Robinson. "The loyalty marketer would say, 'I'm getting my raise this year.' "
The number spikes to 37% when it comes to millennials surveyed for the study, who said they would not be loyal to a brand that doesn't have a strong loyalty program.
These millennials, defined in the study as 20-to-34-year-olds, alter their purchase behavior based on loyalty offerings, too. According to the study, 68% change when and where they make purchases to get loyalty rewards, and 60% will switch brands if incentivized.
On average, people are enrolled in 10.4 loyalty programs, according to Bond, yet they are only active in 70% of them.
People today are more leery of coughing up personal information to branded loyalty programs, said the report. Compared to 29% of consumers who said last year they weren't sure why programs require them to divulge personal data, 32% said the same this year.
"Willingness to share personal information is strongly correlated with trust," said the report, noting that "49% of members who strongly believed a program is trustworthy are willing to share information -- over three times the average."
Personal data uses deemed "cool" by those surveyed included discounts based on previous purchases, customized offers and invitations to events, and "online communities" related to the loyalty program.
Bond Brand Loyalty listed the top loyalty programs in a variety of categories. Here's who ranked No. 1 in each category, followed by the key driver of satisfaction in that category:
Consumer packaged goods:
Dove (total earning potential)
Dining/quick-service restaurants:
Papa John's PapaRewards (members were proud to be part of the program)
Entertainment:
AMCStubs (total earning potential)
Payment Cards:
Chase Southwest Airlines Rapid Rewards Premier (quality of rewards)
Retail:
Kohl's Rewards (total earning potential)
Grocery:
Giant Eagle Fuelperks (ability to reach desired awards in timely manner)
Pharma:
RiteAid Wellness (total earning potential)
Apparel:
Adidas (total earning potential)
Telecom:
Verizon (members were proud to be part of the program)
Air Travel:
Jet Blue TrueBlue (quality or rewards)
Hospitality:
Marriott Rewards (program is trustworthy)
*** Above content published by Ad Age, June 3, 2014 ***
More good reading:
Check out this loyalty report.
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