In yet another sign that consumers are quick to sign up for a loyalty program to get a good deal, a June 2018 survey by CrowdTwist found that many are indeed drawn to discounts and free products, more so than other types of rewards.
According to the multichannel loyalty and analytics company, which surveyed 1,026 US internet users, there are different types of loyalty program rewards they like. Some like experiences such as concerts and sporting events (22%), while others enjoy partnership perks like free Uber rides (21%). There are even those that like being able to donate to charities (41%).
But of all the reasons mentioned, a majority of respondents (89%) said they find discounts and cash back to be appealing, followed by free products (67%).
That's no surprise.
A separate study from Blackhawk Network, conducted in February 2018, came to a similar conclusion. Some 61% of US internet users surveyed said they joined a loyalty program—of if they didn't, what would encourage them to do so—to get free points. Another 61% said to get cash back, while 51% said to get free stuff.
While getting consumers to sign up for a loyalty may be easy, retaining that consumer once they get their initial discount isn't. A January 2018 survey by Bond Brand Loyalty found that across most industries, less than half of loyalty program members in Europe, Latin America and North America are satisfied with their programs.
"A loyalty program can provide the first-party data needed to begin to understand those customers, but interactions after the initial sign up have to be strategic," eMarketer senior analyst Patricia Orsini said.
Our latest report, “Loyalty Marketing: Data Fuels Personalization Strategies and Better User Experiences,” explores how successful loyalty programs are engaging customers and delivering relevant experiences. (eMarketer PRO subscribers can access the full report here.)