77% of consumers in loyalty programmes

use loyalty programmes after you have a brand worth being loyal to
US research completed in 2017 found that 77% of consumers participate in a retail loyalty programme. In Australia, loyalty programmes abound with the well-known Coles, Woolworths, Myer, and David Jones loyalty programmes in addition to a plethora of programmes offered by smaller businesses.
Loyalty programmes are ubiquitous.
But how effective are these loyalty programmes, and to what extent do loyalty programmes actually take the place of brand loyalty?
Loyalty programmes seem to be most common in industries were brand loyalty is lowest, commoditisation is highest, and the attention to values is virtually non-existent. Top of the list in this regard are:
• Supermarkets and department stores
• Hotels and airlines
These are the industries where loyalty programmes are most common, and brand loyalty is most difficult to secure.
It is also interesting to note that in the US:
• The average household is involved in 19 – 29 loyalty programmes
• The average household actively uses 5 – 12 programmes
The number of loyalty programmes by average household is almost certainly lower in Australia, and so is the number of programmes actively used. It seems that people sign up for programmes at will, but use them much less often. This is partly due to a lack of perceived value, but also related to the existence of brand loyalty that does not require a loyalty programme.
If you need a brand loyalty programme, is it because you have not worked hard enough to establish true brand loyalty? I would say so!
use loyalty programmes after you have a brand worth being loyal to
Sources of core statistics – HBR, ACCES, CONSUMER TERMOMETER, ACCENTURE, ICSC, CMO

READ MORE – www.djohncarlsonesq.com
D. John Carlson – Adviser and Speaker – 0402 273 350 or johnc@lincintegrated.com .

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