What benefits do premium loyalty program members enjoy? – RetailWire
August 09, 2021
by guest contributor
Through special arrangement, presented here for discussion is a summary of articles from MarketingCharts, which provides up-to-the-minute data and research to traders.
Seventy-one percent of U.S. consumers belong to a traditional customer loyalty program, of which four in ten belong to three or four of them. Despite their popularity, consumers are not satisfied with them. In fact, 81% plan to switch to premium programs, for example investigation by Clarus Commerce.
Even though 77 percent of Millennials and 78 percent of Gen X are already members of premium loyalty programs, the report says Gen Z members are more likely than other age groups to be part of loyalty programs. premium loyalty (70 percent) as opposed to traditional programs. (63 percent). That said, Millennials are the most likely to upgrade, with 92% saying they’re likely to invest in a retailer’s premium loyalty program if they are already on the loyalty program. traditional from this retailer.
Those who want to pay for premium loyalty memberships are more interested in groceries (58%), clothing and accessories (49%), and health and beauty (36%).
So what are consumers looking for in a premium loyalty program? Sixty-four percent say the delivery is free. In addition to free shipping, 51% would be motivated to invest or renew their premium loyalty program with faster shipping. Indeed, faster and free delivery is the number one reason to join Amazon Prime for three-quarters of those surveyed. This is also why more than half (58%) say they renew their membership.
Other top motivators for premium loyalty programs include instant discounts (53%), freebies (47%), and surprise rewards (35%).
Obligations Loyalty report 2020 showed that experience factors account for 76% of what drives loyalty program engagement. These factors included recognition and support (12% share), personal relevance (12%), ease and enjoyment (12%), and brand alignment (10%), among others. Programs offering personalized experiences have also been shown to have 47% higher engagement, although only one in four strongly agrees that they currently feel special and recognized by their loyalty programs.
DISCUSSION QUESTIONS: What incentives should marketers use in their efforts to upgrade consumers to premium loyalty programs? What typical premium benefits are the biggest margin killers for retailers that can and should be minimized?
“If a loyalty program isn’t easy to understand and points aren’t easy to accumulate and redeem, why bother? ”