For marketers worried that consumers are growing weary of loyalty-rewards programs, the results of a new study bring a sigh of relief – at least in Australia.
Despite the perception of consumer fatigue and worries about low program activity rates, the study found that 59% of loyalty-program members in Australia are active in all of their programs, up 31% from 2013. The study “for love or money 2015” – by strategic loyalty consultancy Directivity and retention marketing agency Citrus – defines “active” to mean the member has used his membership or card in the last 12 months.
As for that card: Program operators shouldn’t be so quick to toss it. The study found that 67% of members still prefer using a traditional loyalty card, while only 10% prefer a mobile app.
“We found this one of the most surprising findings of all,” said Peter Noble, report co-author and CEO of Citrus. “It goes to show that getting the card into a person’s wallet or purse is a critical piece of brand real estate and connection.”
Loyalty programs are doing a better job of capturing a bigger share of those wallets and purses, too, said Directivity CEO Adam Posner, and the programs are evolving from cost centers into key profit drivers. A full 82% of those surveyed say they’re buying more from brands with a loyalty program, and 16% even report purchasing items they don’t need just to earn rewards; that number jumps to 26% for men under 45.
More members are sticking with their loyalty programs, too, with the defection rate falling to 22% from 26% in 2013. Noble credits that staying power in large part to the fact that brands are working to keep their programs simple; only 12% of survey respondents said programs are too confusing, for example, compared with 19% in 2013.
When it comes to rewards, money still talks: The preferred program benefit is still immediate price discounts, followed by redeemable points-based programs. And members want to be rewarded for their interaction with brands, with 53% expecting something for answering surveys and 46% for opening emails.
“This research is a good news story for loyalty marketers,” said Posner. “While consumers are telling us they’re more selective with their programs, they’re also more active and engaged.”
The 2015 study – the third annual “for love or money” research effort – was based on surveys of 1,367 Australian adults who are members of at least one loyalty program. In addition to up-to-date consumer insights, it benchmarks results over the last three years. The full report is available at theloyaltypoint.com.au.
Source: Colloquy and The Loyalty Point
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
Source: CNBC (YouTube)
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
Start checking your old wallets.
A new law that goes into effect Sept. 1 will allow Texans to receive a cash refund on gift cards or certificates that have a balance of less than $2.50. The transaction must take place in person and there are exceptions. The law will not apply to prepaid calling cards, cards issued as part of a loyalty or rewards program, cards issued as a refund for returned merchandise, cards issued by a bank or airline, or cards initially worth $5 that cannot have value added to them.
The law's author is state Rep. Dwayne Bohac, R-Houston, a former business owner who says he penned the bill to strike a balance between the rights of consumers and retailers.
"I believe all of us are carrying around gift cards where we've used up virtually all the money," said Bohac, who owned gift shops. "I wanted it to be $5, but $2.50, it seemed like people could live with that."
Though he acknowledged that retailers could see it as an infringement on a private contract, Bohac called it a "lay-up bill" because it faced little opposition in the Legislature. It passed in the House by 110-20 and in the Senate 26-5.
The Texas Retailers Association, which represents thousands of stores in the state, keeps close tabs on legislation affecting businesses. President Ronnie Volkening said the association reviewed the legislation with its member stores around the time the bill was introduced and heard few complaints.
"We don't think that's going to be a heavy burden," he said of providing cash refunds. "It's consistent with good customer service to volunteer to do that."
This is not the first law to address gift cards in the state. In 2005, lawmakers passed a bill that required expiration dates on gift cards to be clearly disclosed.
State law requires that retailers send money from unused or expired gift cards to the state comptroller's office after a certain period of time. That office announced in December that it was holding nearly $12 million worth of unclaimed gift cards. The new law is not likely to significantly change that. A small fraction of that amount, about $63,000, comes from gift cards that have a balance of less than $2.50, according to the comptroller's office.
A number of states have laws requiring cash refunds for gift cards with low balances. California offers the highest amount: refunds on gift cards with a balance of up to $10, according to 2013 data from the advocacy group Consumers Union. Rhode Island and Vermont offered the lowest, a refund on gift cards with a balance of up to $1.
Source: The Texas Tribune
MEDIA CONTACT:
KATY LASEE | MARKETING DEPT.
651 554 8533
KRLasee@traveltags.com
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