Loyalty Members Are Only Active in About Half of Programs - eMarketer

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Loyalty Members Are Only Active in About Half of Programs

Marketers plan to shift more dollars to customer loyalty by 2017

July 11, 2016

The average internet user in North America belongs to roughly 13 customer loyalty programs for companies in various industries. Yet, according to research, members are only actively participating in about half of the initiatives they have signed up for.

In January 2016, Bond Brand Loyalty, in partnership with Visa, polled roughly 12,000 US internet users about their attitudes toward loyalty programs, and their participation.

On average, respondents said they belong to slightly more than 13 loyalty programs this year. That number had barely budged from 2015, though it had increased since 2014.

However, of those memberships, these internet users said they only actively participate in about seven. Again, the results mirrored findings from 2015—when participation was down from a year earlier.

Looking ahead, US marketers are aiming to shift more dollars of their budget toward customer loyalty programming in 2017. In a separate May 2016 survey from Crowd Twist and Brand Innovators, 57% of respondents said they plan to invest more in these types of initiatives, compared to a mere 4%, who anticipate cutbacks.

So, with more expected dollars at hand on the horizon, what should these marketers focus on in their loyalty programs to encourage more signups and continuous participation by members? Maritz Motivation Solutions uncovered last summer that the plurality, or 41%, of US loyalty members said they joined to earn more rewards, followed by 31% who said they signed up because it didn't take much effort. Perhaps brands should have a program that's easy to understand, too. In October 2015, 81% of US internet users told Colloquy that they want a program that is simple to figure out, followed by relevant rewards and offers (75%).

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