Loyalty Program Members Prove to Be Strong Brand Advocates
With multichannel retailers scrambling to find anything to drive sales these days, a new survey indicates that loyalty reward programs may be worth the investment. Loyalty reward program members are 70 percent more likely to be word-of-mouth advocates for the sponsor brand than nonmembers, according to a survey from the global loyalty marketing firm COLLOQUY. The survey polled 7,193 consumers in October. Here are some more of the report's findings:
- 68 percent of loyalty program members will recommend that program sponsor's brand within a year;
- 55 percent of reward program members described themselves as “word-of-mouth champions” vs. 32 percent of nonreward program members;
- actively participating reward program members are more than three times more likely to be word-of-mouth advocates;
- reward program members who have redeemed for experiential rewards are 30 percent more likely to be word-of-mouth advocates than those who have redeemed for discounts; and
- 73 percent of reward program members said they were motivated to join the program by the ability to tell manufacturers what they think, followed by the ability to educate themselves about products/services (68 percent), to be the first to discover new items (68 percent), to get free product samples (63 percent) and to share their opinion with others (61 percent).
For more information, go to www.colloquy.com.