How to Market A Loyalty Program that Drives Sales

BY Kathy Crosett
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Consumers are getting a little burned out on loyalty programs. They still sign up for these programs, but they aren’t using them like they used to. Your clients may be able to fix that situation with the right kind of marketing and a program overhaul.

Loyalty Program Satisfaction Rates

The 55,000 consumers surveyed by Bond Brand Loyalty maintain membership in about 14.8 loyalty programs. They only use about half of these programs on average. An even more discouraging data point for retailers is that only 44% of consumers are very satisfied with loyalty programs. These findings resembled those published by HelloWorld recently.

Some industries can tout higher member satisfaction rates than others. For example, consumers rate the following industry programs the highest:

  • Movies 50%
  • Credit cards 46%
  • Cruise lines 45%
  • Gas 45%

Gaming Element Boosts Satisfaction

With consumers already feeling overwhelmed by everything they have to do, remembering to use a loyalty card can turn into just another hassle. When retailers add the element of gaming, using a loyalty card becomes an experience. And many consumers equate experience with enjoyment.

If a gaming feature is available, 81% of members will interact with the program. Millennials and members of Gen Z are significantly more likely to engage with a loyalty program that contains gaming elements. Adding features like a treasure hunt to your clients’ loyalty program app could be a game changer in terms of increasing sales.

Unique Program Features

Marketers are exploring other ways to boost loyalty program engagement. For example, JetBlue travelers likely appreciate the partnership that airlines maintains with Lyft. If your clients can conjure up that kind of meaningful partnership, they can drive sales and share advertising costs.

Every marketer would like to replicate the success that Amazon has experienced with Prime. As Bond analysts note, “the lines between the Brand, the Program and the product are increasingly blurring.” Talk with clients about the features they can include in a loyalty program that wouldn’t be easily replicated. After all, few consumers need another toaster.

To understand the demographics of loyalty program users, check out the AudienceSCAN profile. The information is available at AdMall from SalesFuel.