Consumer Loyalty INCOMM CORPORATE RESEARCH: Incentives Market Metrics 2020 | 2,546 Panel
Loyalty Is In 94% of respondents are currently enrolled in and use a loyalty program. Loyalty programs are big business. Whether it’s grocery club savings, airline miles, or rewards points from a hardware store, consumers are active in loyalty programs — and taking note of the experience.
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Most consumers first enroll in a loyalty program because the enrollment process is easy. However, one third leave a program in the first month. For long-term viabilty, drive customer spend up, or increase member retention. 70% are influenced by a promotion to make a purchase.
The top reason consumers opt out of a program is “not enough opportunities to earn points or rewards�.
reported a positive experience with their loyalty program
Other reasons include: Perks not valuable or appealing
Points expire too quickly
REAL COMMITMENT:
The majority of respondents are long-term members that have a lasting relationship with a favorite brand.
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Rewards, Value & Redemption
70%
say the rewards or perks offered to them by their loyalty program are highly valuable.
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THE 3 MOST PREFERRED loyalty program rewards are: 1. VisaÂŽ Gift Card
2. Retailer Specific Gift Card
3. Cash Back
61% say they use their rewards for themselves 37% report self-use or gift to friends & family
would prefer to save up points or rewards for a specific purchase, rather than having them automatically applied.
2% give their rewards to others
28% A few times per month
When it comes to paid membership reward programs, respondents redeem the perks or rewards offered:
26% Less than once a month 22% Weekly 13% Once per month 8% Daily
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The Loyalty Experience
are likely to participate in any loyalty program in the future.
would consider switching to a competitor’s loyalty program due to a better points system (value, opportunities, expiration etc.).
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stopped shopping with the store or brand after having a bad experience with their loyalty program
The majority of respondents visit their preferred paid membership reward program at least a few times per month, with 16% of them visiting daily
Most preferred methods of communication for loyalty programs are:
Emails or notifications
Notifications when there
Emails or notifications
if your points are about
are redeemable rewards
offering promotions
to expire
opportunities near you
The majority would spend up to 30 minutes doing one of these activities to receive a discount from a 3rd party coupon or loyalty program:
• Take a survey • Watch a video (under 10 minutes) • Watch a product demonstration • Write a review • Fill out a personal profile 7
Questions? CONTACT US AT DIGITALCOMMUNICATIONS@INCOMM.COM