Consumers Want Loyalty Rewards Beyond the Buy

While the traditional loyalty program model of points per purchase is highly favored, there's a need for a shift in the role that loyalty plays within the consumer journey, according to new research from HelloWorld.

According to the Southfield, Mich.-based promotions and loyalty solutions provider, some 64 percent of all consumers want to earn points for products they buy, but many are wishing for rewards to stretch beyond “spend-and-earn” models. Three in four, for instance, want to be rewarded for activities such as watching a brand video or taking a survey, suggesting that time is increasingly perceived as a form of currency.

Moreover, 70 percent of consumers overwhelmingly like the idea of programs partnering with other brands to develop new ways of earning loyalty points. Younger consumers, however, are more inclined to prioritize innovative tactics in loyalty programs, with 55 percent of Millennials and 38 percent of Gen Xers expressing a preference for "surprise-and-delight" tactics, a feat less appealing to Baby Boomers (23 percent). Meanwhile, 40 percent of Millennials believe that loyalty programs should offer interactive games, emphasizing the importance of engagement and creating fun, meaningful brand connections.

Along with creating incentives, consumers also want removal of barriers in loyalty programs: Some 53 percent of consumers believe that it takes too long to earn a reward, which suggests that programs should be designed for instant gratification and with frequent rewards built in. Additionally, 32 percent of consumers also worry about their personal information security, with consumers also citing too many communications and rewards that aren’t valuable as additional pain points.