Consumers Shrug off Loyalty Program Messages

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Consumers Shrug off Loyalty Program Messages

08/18/2009
Retailers are spending increasing amounts of time and money creating mailings, e-mails, Web site messages and Facebook posts touting their loyalty reward programs, but according to a recent study, too many of those messages are totally missing the mark.

According to results of a consumer survey released recently by Toronto-based Direct Antidote, a LoyaltyOne company, only one-third of U.S. consumers rated reward program communications eight or higher on a one-to-10 scale measuring relevancy to their personal needs. (One being “not at all” and 10 being “extremely relevant”). Nearly 70 percent rated them a score of seven or below.

Despite marketers’ devotion to customized messaging, consumers across all demographics gave messages about annual points balance reports, special earning offers and other program information just average relevance scores. Seniors reported the lowest perceived relevance, with a 5.7 mean score. Young adults and Hispanics ranked them the highest, each group giving the messages a 6.9 rating.

The Direct Antidote research, based on 2,152 completed surveys from consumers nationwide, looked at loyalty rewards communications.

Loyalty programs can be effective. But retailers and marketers need to step up their efforts.

Di Cullen, president of Dirt Antidote, offered these tips:

-- Create offers that appeal to the trends and values of the times, such as the green movement or recession-stoked consumer frugality

-- Leverage partnerships with other brands to share data, drive down costs and drive up the value proposition to the consumer, and explore alternative sources for information that is compelling to customers

When trying to drive traffic, no one wants to spin their wheels

- Nielsen Business Media