Participation in Loyalty Programs Gets a Booster Shot
Participation in loyalty programs is on the rise, a sign that consumers are looking to make the money they spend work harder to stretch household budgets.
A study Colloquy released earlier this month reports a 19% participation growth by the general population since 2007.
Two groups showed very strong participation growth: Millennials (age 18-25) up 32% from 2007 and women up 29%.
Respondents liked retail programs, with 75% of 2,152 surveyed reporting a net neutral or positive effect on their participation as a result of the economy. The financial services sector remained relatively flat, with 52.7% reporting “no difference” in the impact of the recession on program participation.
“In spite of the dire economic news of the past 18 months, consumers remain as engaged, if not more, with loyalty and rewards programs,” said Colloquy Editorial Director Rick Ferguson, in a release. “In fact, U.S. consumers clearly see value in program participation, and continue to leverage their activity as an antidote to hard times—seeking added value and using rewards to stretch dollars.”
Millennials are an intriguing group for marketers. The study also found:
- Nearly half (46.4%) of Millennials rate retail rewards programs as “more important” during the recession. This outpaces the general population, at 32.3% for the same category.
- 27% of Millennials are actively seeking to enroll in new programs to help expand their budgets.
- Somewhat expected, but still significant—Millennials are far more likely to enjoy engaging with programs through new media channels than the general population. Over 55% appreciate communicating through social networking sites (39% for general population), and 52% enjoy communication via cell phone or text message (38% for general population).
“Millennials represent a golden opportunity in a time of economic darkness for loyalty marketers,” said Kelly Hlavinka, Colloquy partner and coauthor of the white paper. “This demographic is receptive to the wish-list of loyalty initiatives—eager to join programs, eager to build relationships with their favorite brands and eager to engage with new media channels. This shows a powerful opening for loyalty marketers to build sustainable loyalty with the next generation of American consumers.”
