INVER GROVE HEIGHTS, MN - Travel Tags discovered gift card fulfillment successes and misfortunes first hand by taking on the role of the consumer. We ordered gift cards from hundreds of merchants online and had them delivered to our doorstep. Be the first to view the 2014 findings and see how you stack up against today's most popular brands.
Key Highlights:
Overall purchase experience
e-Commerce observations
Premium card add-ons
Shipping methods & costs
Giftability factor upon delivery
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KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
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.
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
The cards aren't attached to bank accounts, and you can load and withdraw as much money as you want onto them from ATMs and make payments anywhere that debit or credit cards are accepted. And since you can only spend the amount that you've placed on the card, there's no risk of overdrawing your account and getting hit with overdraft fees. They've become so popular in recent years that celebrities, big banks, drugstores, tech companies and even organizations like Occupy Wall Street have rolled out their own versions.
While often viewed as an alternative banking product for the millions of Americans who lack bank accounts, the unbanked are no longer the primary users of prepaid cards, according to a Pew Charitable Trusts survey that polled 613 prepaid card users. In fact, the majority, 59%, also have checking accounts. Most prepaid card users reported struggling with credit card debt, overspending and overdraft fees in the past -- with two in five customers closing their own checking account or having an account closed after incurring too many overdrafts. And the most common reasons respondents cited for using prepaid cards were to avoid spending more money than they have and to avoid credit card debt.
"I am already negative in my checking account. So with this, I know what I can put on and what I can and cannot use," said one respondent in Pew's survey.
Unbanked prepaid card users said they want to be able to purchase items online. "I'm avoiding banks, and I still have Netflix, so I need to pay for it with some sort of plastic because you can't pay for things online with cash," another user stated. Many people who previously dealt in all cash said they switched to prepaid cards because it's safer than walking around with wads of money in their pocket, and others reported liking prepaid cards because they allow you to make transactions more annonymously -- since they aren't tied to a bank account. Another group of consumers said they simply can't qualify for checking accounts.
Fees used to be a big problem with prepaid cards, and still are in many cases. But as demand grows, more affordable options are entering the market -- and some are even less fee-heavy than traditional checking accounts. Overall prepaid cards are shifting their fee models to look more like checking accounts -- getting rid of some of the ancillary fees like customer service fees and charging more consistent monthly fees. This is a positive development, says Pew, since customers are less likely to be hit with charges they aren't expecting.In addition, three of the 10 largest prepaid cards are now issued by banks, which are generally better options because they carry lower -- and clearer -- fees, Pew finds.
There's still a big problem with prepaid cards, however. While federal laws regulate traditional bank accounts, limiting the fees they can charge and requiring certain protections from fraud losses and insurance coverage, prepaid cards remain unregulated.
"While prepaid cards offer many benefits to consumers, they are a relatively new product with little oversight. A lack of protections undermines prepaid cards as a safe and easy way to manage money," said Susan Weinstock, director of Pew's safe checking research, in a statement.
Source: CNN Money
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meweaver@traveltags.com
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