Loyalty Programs More About Rewards

A new survey found that members say it’s more about the reward than loyalty.

March 03, 2016

FENTON, Mo. – Loyalty programs that give members points or other rewards work best, although most members are only in it for the reward, according to a new Maritz Motivation Solutions survey, Marketing Daily reports. Close to half of consumers (45%) who are loyalty program members only purchase specific brands or shop in certain stores to earn rewards. But 17% of loyalty program members joined because they love the products or the brand identity.

“The use of rewards and points is the dominant model that consumers have been faced with for some time,” said Barry Kirk, vice president of customer loyalty strategy for Maritz Motivation. “Brands will offer consumers the kinds of rewards they’re looking for.”

Forty-three percent of consumers in loyalty programs want to earn rewards tied to the brand. But 60% of such consumers viewed the brands as offering loyalty programs only as a way to spur more sales, instead of cultivating more connections with customers.

Kirk labeled most loyalty programs as “mercenary” because of the quid pro quo of goods and services for rewards. He recommended most companies should aim for “cult loyalty” from members, which means they share identification with the brand and want to interact with similar customers. One example Kirk gave was Apple.

“If you want something like ‘cult loyalty,’ that requires a different conversation,” Kirk said. “If you don’t give people that opportunity for cult loyalty, then you’re not going to get [that affinity].”

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