Hard Lesson From New Research: Stop Chasing Members — You Have Enough Already!
It’s time for a loyalty shakeup. There’s no doubt that rewards programs are still popular, but are they still effective?
Marketers continue to pour more and more money and time into their programs, but they often aren’t getting the payoff they expect in long-term relationships, customer engagement and increases in sales and profitability. Consumers, likewise, often aren’t getting what they expect from loyalty programs. They know their data is valuable but feel that companies often miss the mark on creating relevant communications and personal experiences.
COLLOQUY conducted a major survey of 2,000 U.S. and Canadian respondents in August and found that people still want to form real, long-term and emotional loyalty with the brands they trust. The good news: Consumers still see the value in loyalty programs; 55% of U.S. respondents said they had joined a loyalty program in the past year, for example, with 63% of millennial respondents having done so.
But joining a program and staying active in it are two different things, of course, and developing a strong personal connection to the program is another thing altogether. Loyalty marketers must concentrate on these three things in particular if they’re to succeed in creating program tactics and investments that support business objectives – and avoid leaving money on the table:
- Stop acquiring new members.
- Partner up to create power.
- Don’t misunderstand millennials.
There’s a narrowing window of opportunity to make the loyalty landscape better. Our new report, “Customer Loyalty in 2015 & Beyond,” delves into our U.S. survey results to give loyalty marketers tips and supporting data to shake up their programs. For instance: Fire your worst customers; they’re wasting your time and your money. Check out our report to dig deeper into all the results.