New Bond Brand Loyalty study shows consumers are evaluating their loyalty program experience on elements far beyond the dividend and rewards. Members who find their loyalty program to be enjoyable are 11 times more likely to be satisfied, yet only 18 percent feel this way.
TORONTO and NEW YORK, May 23, 2017 /CNW/ - Bond Brand Loyalty, a leading brand loyalty agency, today released its seventh annual consumer loyalty report. The Loyalty Report 2017 finds that loyalty programs remain one of the biggest drivers of brand choice and loyalty. Brands continue to invest more in loyalty programs, and enrollment has grown by almost 25% over the last four years. Despite success, opportunities to drive business results are still being missed.
"Consumers love loyalty programs and continue to join more every year, but active engagement rates have remained flat in the past four years, indicating that there's a tremendous opportunity to evolve "same-old" programs to ensure members' expectations and needs are being met," said Bob Macdonald, President and CEO of Bond Brand Loyalty. "Today's hyper-informed consumers expect personalized and shared interactions delivered through a combination of human and digital experiences. By engineering the program with every asset of a brand's loyalty ecosystem and making adjustments to differentiate the member experience, brands can improve engagement and substantially increase program performance for gains in lift, retention and lowered marketing costs."
As customer experience increases in importance for consumers, evidence shows that Loyalty Program operators will be able to buy down the points or cashback dividend associated with their Program by providing better and more tailored member experiences. Based on data from the 2017 Loyalty Report, Bond has machine-learned and developed a proprietary tool to understand how certain member experiences and softer benefits can be introduced to offset the need to offer ever-richer dividends. This is key for Program operators, especially in payments, who need to reduce their program's cost per point.
The Loyalty Report 2017, conducted in collaboration with Visa, is the largest study of its kind. The report captures responses from more than 28,000 consumers in the United States and Canada, collecting feedback on more than 400 programs on 50+ attributes of loyalty programs, including rewards and redemptions, program and earn mechanics, brand alignment and emotional and behavioural loyalty outcomes, as well as human-to-human and digital experiences.
Marketers are Spending More to Keep Customers Satisfied, Yet There's More to the Story Than Satisfaction
• Program meets needs
• Ease of redemption
• Enjoy participating in program
• Ways rewards/benefits can be earned
• Level of effort needed to earn a redemption
• Amount accumulated per $1 spent
• Time to earn desired rewards/benefits
• Program consistent with brand expectations
• Program rewards/benefits appealing
• Customer support
*Note that there are important distinctions and changes in drivers, sector by sector.
Creating an Enjoyable Customer Experience is Critical to Program Success
The Redemption Experience is as Important as the Reward Itself
Leaders in Loyalty
The Loyalty Report 2017 performs in-depth profiling of more than 400 loyalty programs across key sectors including retail, payments, grocery, gas, dining, hotel, airline, entertainment and coalition. Some of the top loyalty programs based on overall member satisfaction include: Amazon.ca Amazon Prime, President's Choice PC Plus, Petro Canada Petro-Points, McDonald's McCafé Rewards, Johnson & Johnson Healthy Essentials, Porter Airlines VIPorter, MEC Membership and Chapters Indigo irewards.
For more information about the complete Bond Loyalty Report 2017 and to download a free copy of the Executive Summary, visit www.bondbrandloyalty.com/loyaltyreport.
About Bond Brand Loyalty
Bond Brand Loyalty is a management-owned 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 more profitable 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 loyalty technology platforms. Visit our website, follow us on Twitter or contact us at 1-844-277-2663.
SOURCE Bond Brand Loyalty
For further information: Heidi Davidson, [email protected], 914-441-6862