In 2009, U.S. consumer participation in loyalty and rewards programs rose across every demographic segment and grew 19% overall since 2007 (Colloquy, July 2009). Customers join programs with the hope of benefitting more from their consumer experience, yet studies show many customers are dissatisfied. A study by the Chief Marketing Officer Council on MarketingProfs.com sheds light on the source of cutomer dissatisfaction:
- 70% want more discounts and savings.
- 58% want better personal benefits and services.
- 52% want more compelling personal offers as a reward for steering their business to loyalty-program operators.
According to MarketingProfs, “Most consumers surveyed (54%) say the barrage of irrelevant messages, low-value rewards, and impersonal engagement don't particularly engender loyalty.”
Implementing a loyalty program as a quick fix solves nothing. Like any other tactic, loyalty should be integrated into your marketing strategy and help you meet your marketing goals.