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40% are signed up to three or more loyalty programmes

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By The Drum Team | Editorial

February 6, 2012 | 2 min read

86% have signed up for at least one loyalty programme and 40% are signed up to more than three, although 39% say they do not use all the schemes they are enrolled in, ICM Research has found.

The research found that when their mobile phone company offers rewards, most would prefer to receive something not related to their mobiles: 48% said they’d prefer a voucher to spend at a High Street store against 32% who would opt for any of free minutes, texts or mobile internet.

However, when a supermarket gives rewards, 70% prefer offers or discounts to spend at the supermarket, with only 18% wanting a voucher for another High Street store.

Jamie Belnikoff, ICM project director, said: “The success of schemes like Tesco ClubCard, Boots and Nectar is born out by our finding that 77% of us would prefer small guaranteed rewards on an ongoing basis rather than the chance to win something big. This presents a creative challenge to many marketers – how to design a loyalty programme that is exciting, engaging and differentiating whilst delivering rewards on a regular piecemeal basis.

In addition to effective loyalty schemes increasing business profitability, marketers must ensure that schemes also strengthen customers’ emotional commitment, from which positive recommendation will follow.

“Relevance is fundamental. Unsurprisingly these days, near-cash rewards appear more compelling than ever. But it’s fascinating to observe that what people find relevant depends on the sector the business is in”.

“Loyalty scheme operators would be well-advised to research both the category and mix of rewards and then refresh or even re-launch their programmes where necessary.”

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