Consumers Say Easy Enrollment Is a Major Draw for Loyalty Programs

Consumers Say Easy Enrollment Is a Major Draw for Loyalty Programs

July 16, 2018         Written By Lynn Oldshue

Kobie Marketing recently conducted a study to determine how consumers use and view store loyalty programs. They found 75% of consumers actively earn rewards in three or fewer programs, and the programs they selected were based on value and simplicity.

Half of respondents felt deterred from joining new loyalty programs. When asked why, 26% said the programs asked for too much information in the enrollment process. Twenty-two percent said it takes too long to accumulate rewards.

This desire for convenience and simplicity is reflected in the types of rewards programs consumers like the most. Over one in five (22%) said they would use a loyalty swipe card, where all they have to do is swipe a card before making a purchase. Another 15% said they would get a store credit card, which would automatically tally rewards points for every purchase. Only 11% said they would use a mobile app to earn rewards points.

Technology-based loyalty programs were more popular among younger generations. This may be why the Starbucks rewards app has been so successful over the last few years. Starbucks recently outranked Google Pay, Apple Pay and other mobile wallets in purchases made from a smartphone at a physical register. The company also has a prepaid rewards card and a rewards credit card to give customers more ways to earn loyalty points. Eighty-six percent of Millennials said the main reason they join loyalty programs is to collect points for rewards. By comparison, 78% wanted access to discounts, and 50% wanted birthday freebies and other perks.

The information contained within this article was accurate as of July 16, 2018. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.

Review LowCards.com Editor’s Top Cards!

2020 Top Credit Cards by Category
Featured Fair Credit Card
Reflex Mastercard® Credit Card
EDITOR RATING
Featured Fair Credit Card
Reflex Mastercard® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: All credit types welcome to apply!

Featured Low Interest Card
ABOC Platinum Rewards Mastercard®
EDITOR RATING
Featured Low Interest Card
ABOC Platinum Rewards Mastercard®

Applying for this card will securely direct you to the issuer's website.

Top Features: No annual fee; $150 statement credit after spending $1,200 in first 90 days; 0% on Purchases for 12 months

Featured Bad Credit Card
First Digital NextGen Mastercard® Credit Card
EDITOR RATING
Featured Bad Credit Card
First Digital NextGen Mastercard® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: Reports to all three credit bureaus, perfect credit not required for approval

Featured Good Credit Card
Petal® Visa® Credit Card
EDITOR RATING
Featured Good Credit Card
Petal® Visa® Credit Card

Applying for this card will securely direct you to the issuer's website.

Top Features: No fees whatsoever. No late fee, international fee, annual fee, or any-other-kind-of-fee, fee


lynn-oldshue

About Lynn Oldshue

Lynn Oldshue has written personal finance stories for LowCards.com for twelve years. She majored in public relations at Mississippi State University.