Would Loyal Customers Pay for Rewards? - eMarketer

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Would Loyal Customers Pay for Rewards?

Nearly two-thirds of internet users are willing to pay to join a rewards program

July 16, 2015

Are your customers loyal enough to pay for the privilege of using your rewards program?

Attitudes Toward Fee-Based Rewards Programs Among US Internet Users, by Age, May 2015 (% of respondents in each group)

The answer may be yes, based on May 2015 research from LoyaltyOne. The loyalty services firm found that 62% of US internet users would pay to join a rewards program if their favorite retailer had a paid loyalty offer.

That figure was substantially higher among younger respondents, reaching 77% among 25- to 34-year-olds. Younger respondents were even more likely to say that it was worth paying for relevant rewards. Around two-thirds of respondents overall agreed with that.

Just under half of respondents thought fee-based loyalty programs offered better rewards than free ones—even more thought that all rewards programs just seemed the same to them.

Respondents indicated they would be most interested in fee-based rewards from grocery stores and mass merchandisers (35%), followed by credit card companies (26%).

What shoppers really want from loyalty programs, though, are discounts—so even if shoppers say they are willing to pay, they still want to save in the end.

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