DISCUSSION
Retailers need to get emotional to engage loyalty program members
Written by George Anderson
An eMarketer article yesterday pointed to a number of published studies that came to a conclusion that most of us have come to by looking at our key rings and over-stuffed wallets. Americans are members in a whole lot of loyalty card programs, but the percentage of those who are actively engaged in them is much lower. (Editor's note: I finally removed the Pathmark fob and a few others that have not been used in years from my key ring as a result of writing this article.)
Research conducted by Catalina, referenced in the eMarketer piece, found that only 45 percent of consumers maintain their level of loyalty for the top 100 consumer packaged goods brands over a 52-week period.
According to COLLOQUY's "Customer Loyalty in 2015 & Beyond" study, the two biggest reasons that members continue to participate in a loyalty program is because it is easy to understand (87 percent) and the rewards and offers are relevant (75 percent). The biggest reasons members stop participating are that rewards and offers are not relevant (56 percent) and earning rewards is too difficult (54 percent).
Another recent COLLOQUY article concluded that consumers define the value of a loyalty program differently during the acquisition and retention phases of the relationship.
In the beginning stage, customers are interested in transactional value, points and discounts. As time goes on, customers look for emotional value with rewards that align with their interests and values being key, along with a program's simplicity and the time (preferably shorter) it takes to earn rewards. "Customers," according to the article, "are clamoring for an emotional connection, and they want to be recognized as unique."