Consumers Say Easy Enrollment Is a Major Draw for Loyalty Programs
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.