Americans have 3.8 billion loyalty memberships (yes, “billion”). With that high degree of market saturation, customers have started asking, “Is it worth it to me to hand over my personal info to get what you are offering?” Increasingly, the answer is “No.”
The biggest reason customers ditch loyalty programs is that it takes too long to earn rewards, according to a study by Colloquy. Nearly 60% of respondents cited that as their biggest frustration with a loyalty program. Customers are starting to focus on programs that offer more modest rewards in return for fast – or, even better – immediate turnaround, says Barry Kirk, VP of Loyalty for Maritz Motivational Solutions. The best programs, according to Kirk, are those that easy, accessible and transparent.
The King of Incentives? Cash.
That’s why for most consumers, nothing offers as much of an enticement as cash. Few loyalty programs run that way, which offers ones that do a unique opportunity to standout in the mediocre wash of programs based on point accumulation.
“Savvy and strategic companies are now looking beyond rewards programs to delight, create and retain customers,” says Howard Schneider, senior consultant with Kobie Marketing. Those customer loyalty programs actually “do work to drive sales and create repeat customers.”
The RewardsCardPlus Solution
Encore Incentive’s RewardsCardPlus program offers the permission-based transparency, simplicity, and immediacy that today’s customers are seeking in rewards or loyalty incentive. Extensive research shows cash incentives have proven to be the highest motivator for positively influencing customer behavior and increasing brand loyalty. Visit our web page “How It Works” to learn more.
Sources: How to Get the Most Out of Customer Loyalty Programs, CNN Money, July 5, 2017 and The Best Loyalty Programs Go Beyond Rewards Forbes, March 25, 2017