Feeling the love from loyalty clubs
CMO Council in association with IBM and Ricoh has done a global survey on what marketers and consumers think about loyalty programs. In a year when the economy was battered, many companies that run active programs are now reaping the benefits of their commitment. “The relative strength of our loyalty members in the recession is an even stronger impact than in non-recessionary periods. I can’t imagine where we’d be in the absence of our loyalty program because it really has established those long-term, ongoing relationships with those customers, and they’ve stuck by us.” – Larry Wadford, Senior Marketing Director, Office Depot. While marketers are excited about the possibilities of loyalty programs, many customers, while happy participating in the promos, price-off and incentives, think that the programs they participate in don’t seem to understand them individually. For their part, consumers are committed to loyalty programs. Most, take these brand partnerships into consideration when making purchasing decisions and they’re largely satisfied with their experiences even though they complain they’re getting too much spam and junk mail. Unfortunately, they’ve been programmed to expect the fundamental discounts and free products and marketers will be hard pressed to wean them off such a deep dependence on them and respond to more experiential rewards. This will challenge the creativity of marketers. Get hold of a summary of the report here.