Is your loyalty program keeping up with consumer expectations?
For many brands, the answer is no. Even when acquisition numbers climb, there's no guarantee your new members will remain engaged in your program.
In the largest study of its kind, Bond Brand Loyalty collaborated with Visa to capture responses from roughly 19,000 North American consumers for its 2016 Bond Loyalty Report.
Here are six findings that may surprise you.
1. Enrollment in loyalty programs does not equal engagement
In 2016, consumers are enrolled in an average of 13.4 memberships and active in 6.7. Despite an increase in enrollment, the number of loyalty programs in which members are active has declined slightly. That suggests that though consumers enthusiastically join program after program, they have only so much capacity for measurable engagement. The lack of sustained activity is often not revealed until after a preliminary novelty period. That's a concern for marketers.
Marketers need to identify and address the things preventing their program from findings its way into the active half of a member's wallet vs. the half that goes unused. It's critical that marketers stay ahead of the competition and innovate to ensure their loyalty program becomes (and remains) one of the chosen.
2. The redemption experience means much more than the reward itself