The quest for customer loyalty continues to be both a critical goal and a major challenge for companies of all types and sizes. [See 1, 2, 3.]
Today, we highlight an infographic from Colourfast (an international paper and plastic card printer based in Ontario, Canada) that looks at “what customers want to know before joining your loyalty program.”
Why is this perspective of customer loyalty programs to companies? According to Colourfast, American households have memberships in 29 loyalty programs but are active in just 12 of them; and a large percentage of shoppers do not even sign up for loyalty programs because of the hassle involved.
Companies that have changed their approach to rewards programs by making redemption easier and more appropriate towards the individual’s personal needs and wants has increased customer loyalty. I believe that those programs that are used daily or weekly are the ones with more loyalty since the stores are a part of the consumers lives and routines, those that are used on occasion are good to have but it will not convince someone to use if they are able to find at a better price elsewhere.
I agree with Christine’s comment, however, there are so many different types of loyalty programs (as the blog post shows) that it could be argued that a loyalty program may not be the only grabber of a consumer. Yes, as a consumer I am more loyal with some sort of incentive, but there are so many options in the market space that at times I may continue to purchase elsewhere regardless of a loyalty program. I also would be curious to see the most common industries frequented based on loyalty program by age bracket.
I think this is a great view for any company that is planning to start or improve their loyalty program. For a new company this inforgraphic offers a good guideline and a company whose loyalty program is failing it offers ways to improve via case studies.
Having worked several years in retail, the loyalty programs that were the most effective provided customers with an instant discount. Customers want their shopping experience to be as easy as possible and providing an everyday discount removes any confusion or complications in a companies program.