Zurich, Switzerland – Following the insight gained from previous online surveys running alongside the Freddie Award voting, Loylogic has repeated the exercise for 2009; critical timing for understanding how loyalty programs may be perceived in the midst of the current economic crisis.
Loylogic, a leading reward solutions provider to loyalty programs worldwide, canvassed the opinions of more than 4,000 members from over 60 loyalty programs.
Significantly for marketers it emerges that, in the current downturn, miles and points are perceived as more valuable to program members. 66% confirm this, whilst 24% would find them more valuable if they were actually able to use them.
Lifestyle integration
Loyalty currency, and the purchasing power it places in the hands of program members, is now integrated into members’ lifestyles. 48% buying merchandise with their points tend to buy something they need and would also buy with cash; so the cash replacement value is becoming important. 31% use points to buy gifts for family and friends, and only 21% see the purchase opportunity as sitting outside their normal behavior (‘something expensive I would not buy with cash’).
Marketers should also be aware that this tendency to treat points as normal currency means that members seek good deals on good brands. As they would in their ‘non-promotional’ lives, so they do when it comes to points redeeming; 74% always compare prices when buying with cash via the Internet and, likewise, 70% calculate the cash value of their miles or points.
Adding value
The most significant motivating factor for program members (‘What makes the reward difference for you?’) lies, unsurprisingly, in the value they receive for their miles, as confirmed by half of all survey respondents. One in four prefers a large choice of rewards and 15% find that ‘an easy-to-use reward shop’ makes a difference. In addition, a staggering 84% would like the opportunity to use their miles or points directly on their preferred merchant websites.
The overall message is clear, miles and points have assumed greater significance to members now that we’re in a crunch; they’ll be looking to use them to defray purchase costs, but will expect the value represented by miles and points to hold up.
Rewards count now more than ever before, and it’s up to marketers to align their programs with member’s value expectations if they wish their programs to attract frequent users.
To download the survey results click here:
