According to a new report, loyalty programs have a higher influence on Gen Z and Millennial consumer spend than on Boomers (66% vs. 58%). However, younger consumers are less satisfied with their programs (30%) compared to their Boomer parents (49%), creating an opportunity for brands who focus on rewarding members through experiences beyond points.
TORONTO and NEW YORK, March 19, 2018 (GLOBE NEWSWIRE) -- The loyalty landscape is in the midst of significant evolution, driven by new technologies, smarter programs, and changing customer needs and expectations. In a new study released today by Bond Brand Loyalty, a leading global customer engagement agency, consumers say they spend more, advocate for, and remain loyal to brands with loyalty programs that offer innovative personalized experiences in addition to points and discounts. Consumers spend 37% more with brands when they are a loyalty program member. The top five sectors in which spend increases when a consumer is a member of the loyalty program are Gas with a +99% spend increase, Hotel +82%, Drug Store +63%, Movie Theatres +61%, and Grocery +57%.
In partnership with Visa, The Loyalty Report 2018 is recognized as the industry’s leading report on customer engagement, loyalty attitudes, behaviors, drivers, and disruption. Now in its eighth year, the expanded 2018 global report features an unprecedented assessment of more than 800 loyalty programs, in 18 markets, by more than 50,000 consumers across a range of key sectors including payments, retail, grocery, CPG, gas, dining, hotel, airline, entertainment, and coalition.
The report has identified the following areas where brands can differentiate and improve the performance of their loyalty programs:
Embracing New Loyalty Currencies and Experiences Beyond Points
Adding a Paid Loyalty Program Option Can Drive Higher Spend and Satisfaction
New Technology and Increasing Usage of Existing Technology Leads to Higher Member Satisfaction and Engagement
Meeting Human Needs is Essential to Improving the Experience
2018 Leaders Pushing the Boundaries
Top ranked programs include USAA, Kroger Fuel Program, Speedway Speedy Rewards, Marriott Rewards, Papa John’s Pizza Papa Rewards, Kohl's Yes2You Rewards, Walgreens Balance Rewards, Dollar Shave Club, and Amazon Prime.
Top performing sectors this year include grocery, drugstore, dining, gas, credit cards, and hotel. Lagging sectors include CPG, apparel, and airline.
“We are honored to be the aggregators and stewards of the world’s largest source of data on consumer attitudes, behaviors, and future desires surrounding loyalty programs. This year the data shows that loyalty programs continue to heavily influence advocacy, retention and spend. But the loyalty game is changing as evidenced by new players, evolving experiences, and increased customer expectations. Regardless of sector, brands need to rethink their current loyalty strategy in order to increase customer engagement and build loyalty,” said Bob Macdonald, President and CEO of Bond Brand Loyalty.
With loyalty programs becoming a vital element of customer–brand relationships and an increasing influence on credit card decision-making and usage, this enhanced report will equip brands with the actionable information they need to gain a competitive edge and produce greater business results.
For more information about purchasing The Loyalty Report 2018 and to download a free copy of the Executive Summary, visit www.bondbrandloyalty.com/loyaltyreport.
About Bond Brand Loyalty
Bond Brand Loyalty is a global customer engagement agency that specializes in building brand loyalty for the world’s most influential and valuable brands. Our mission is to make marketing more rewarding for customers, richer and more resilient for brands, and to deliver profitable business outcomes for our clients. We build measurable, authentic, and long-lasting relationships through a combination of services that includes loyalty solutions, customer experience, marketing research, customer analytics, live brand experiences, and proprietary technology platforms. Visit our website, follow us on LinkedIn and Twitter, or contact us at 1-844-277-2663.
Contacts:
Shannon Wojcik PR Contact, Galvanize Worldwide shannon@galvanizeworldwide.com +1 (585) 831-6267 M. +1 (585) 425.8812 | Bond Brand Loyalty Richard Lane, Marketing Director Richard.Lane@bondbrandloyalty.com +1 (905) 696.5319 M. +1 (416) 844.9658 |
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