What Do Shoppers Want from Loyalty Programs? - eMarketer

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What Do Shoppers Want from Loyalty Programs?

Discounts, free products the most desirable loyalty program benefits

April 14, 2015

Shoppers love loyalty, according to research from UPS. A worldwide survey conducted in October 2014 found that 81% of all digital shoppers participate in a retail loyalty program. And mostly, they’re looking for free stuff—what shopper wouldn’t love that?

Product discounts were the most likely item to be considered the most valuable benefit of joining a loyalty or rewards program in Asia-Pacific, Western Europe and Brazil. In Mexico, discounts were tied with free products and other cashback or money-off promotions as the most attractive offer, and in the US these were the most popular. Both types of offers garnered a majority of responses in all cases, except free product offers in Brazil, which came in at 47%.

The least popular loyalty benefits depended more on geography and included personalized recommendations, “status”-oriented benefits and the basic fact that merchants knew the customer’s name upon signing in. Customers in the US and Western Europe were particularly unlikely to be impressed by custom recommendations.

July 2014 research from Retention Science found that product recommendations were the most common website personalization tactic used by US online retailers. Infogroup found in October 2014 that it was the third most common type of personalized campaign US marketers were running, after custom offers and custom greetings. And MyBuys found the same month that recommendations were the most desirable type of personalized advertising according to US digital buyers—though, of course, loyalty program members might expect more from a retailer than what’s available in any personalized ad campaign.

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