Loyalty programs can be hugely beneficial but what do consumers want out of these loyalty initiatives? Let's take a closer look.
Consumers love loyalty programs. In fact, a UPS survey found that 81 per cent of all online shoppers take part in some kind of loyalty initiative. But what are they looking for when they sign on? And how can you keep them engaged beyond the flashy presents?
The UPS report found that, across the globe, product discounts tend to be the most valuable benefit of joining a brand's loyalty program - with the exception of the US who preferred cash back promotions.
Consumers are also increasingly looking for more choice when it comes to these programs. Other studies in this space have found that loyalty program users increasingly care more about reward choices, flexible redemption policies and easy-to-use platforms than the value of the reward itself.
"Customers like when loyalty programs offer discounted products or free items."
Looking beyond rewards
However, modern loyalty programs are about more than just incentives - they're about leveraging these initiatives to gain a better understanding of your customers. The real currency in today's market is understanding. Consumers want their brands to know what they like and deliver a more value-driven experience than ever before.
This is arguably where the biggest value of a customer loyalty program lies. While the product offers and discounts will likely be what drive your consumer base to sign on, the value you derive comes from the information tied to that sign-in process and their requisite actions.
"Consumers want their brands to know what they like and deliver a more value-driven experience than ever before."
Consumers know that the information they are providing you with during sign-up is valuable and their expectations are that you will use it to create a more personalised experience. Whether this comes in the form of better product suggestions or a more targeted buying experience is up to you - the loyalty program is your gateway into these better offerings.
In order to effectively collect and analyse this information to use it in the right way you'll need a proven platform. That's where Power2Motivate comes in. Our customer loyalty programs provide businesses with everything they need to not only reward their consumers in the best way possible but garner a better understanding about what drives them to purchase.
Our detailed real-time reports help you measure ROI and pinpoint critical information about your customers. You can even conduct customer surveys through the platform to get customer feedback to help influence your current strategies.