The Right Mix of Loyalty Rewards can Drive Loyalty to New Levels
For members of airline and hotel loyalty programs, free flights and free nights are still the primary offer they gravitate toward. But for other industries, the rules are different.
In our 2018 consumer loyalty study conducted by research firm Leger, loyalty program members told us what gets them interested in joining and participating in a loyalty program. The answers vary by program type (e.g., retail, online retail, food & beverage, gym, bank, phone company, etc.), as well as by demographic. Key takeaways for us include:
- To entice participation across age and income groups, a loyalty program has to offer a variety of rewards
- For some types of programs, engagement is dependent upon the availability of lower-value, easily attainable rewards
- Millennials are beginning to show a preference for digital redemption, particularly with online retailers
It’s important to remember that when considering your core demographic, you don’t cater to them to the exclusion of others. By offering a carefully selected mix of rewards, you can appeal to consumers across all age and income groups, and potentially move some of those “second best” customers into the category of “most loyal.”
*Blackhawk Network proprietary data, 2017.
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What makes customers fall in love with a loyalty program? What can you do to keep the love alive?