US Marketers Plan to Invest More in Loyalty Programs by 2017 - eMarketer
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US Marketers Plan to Invest More in Loyalty Programs by 2017

Members join because of ease, and desire for rewards

June 14, 2016 | Retail & Ecommerce

The majority of US marketers intend to allocate more of their budgets to customer loyalty in 2017, according to research. And about 13% said they anticipate significant increases in spending on such programs.

Expected Change in Budget Allocated to Customer Loyalty Programs in 2017 According to US Digital Marketers (% of respondents)

Multichannel loyalty and analytics company CrowdTwist, in partnership with Brand Innovators surveyed 234 digital marketers about their customer loyalty programs in the US throughout March and April 2016.

According to the research, more than half of respondents said they plan to put more dollars into their loyalty programs next year. Almost half (44%) of all respondents said they will somewhat increase loyalty budgets, and 13% plan to significantly. Meanwhile, a mere 4% said they anticipate lowering investment.

In anticipation of having more dollars to play with for loyalty programs, marketers should think critically about what areas of their programs may attract increased participation rates. In a summer 2015 survey from Maritz Motivation Solutions, 43% of loyalty program members said the top reason for joining in summer 2015 was because of their desire to earn rewards.

Primary Reason for Joining Loyalty Programs According to US Loyalty Program Members, Summer 2015 (% of respondents)

Meanwhile, 31% said it was because it required a low effort to sign up. In fact, in another related study from October 2015, Colloquy uncovered that 81% of those who joined a loyalty program said they continued to participate because it was easy to understand. And 75% said they stayed because the rewards and offers were relevant to them.

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