The average U.S. household has enrolled in more than 18 customer loyalty programs, but is only active in 8.4. (Colloquy Loyalty Census). Just because someone signs up for your loyalty program, it doesn’t mean they will ever do business with you again, at least in the somewhat near future.

Of the roughly $48 billion in reward points and miles issued annually, at least one third goes unredeemed by consumers. (Colloquy Loyalty Census).  

85% of loyalty program members haven’t heard a single word since the day they signed up. It is likely that most companies do reach out to their customers, however their emails or letters look like spam or junk mail.

88% of respondents indicated that quality is a key factor in their decision to remain loyal to a brand; 72% identified customer service as a top priority. These stats make a pretty strong case that loyalty comes from the combination of a high quality product and excellent customer experience.

48% of respondents said that the most critical time for a company to gain their loyalty was when they make their first purchase or begin service. First impressions count. It can be the first time you meet or work with a customer, or the 500th time. Set the tone for the first impression of that particular interaction, which sets the tone for what’s to follow.

54% of respondents would consider increasing the amount of business they do with a company for a loyalty reward, and 46 % said they already have. However, the majority of consumers (62%) don’t believe that the brands they’re most loyal to are doing enough to reward them. Customers want to be loyal. They would like some type of loyalty program, but do it right. Follow through after the customer signs up or commits to your program.

Don’t let your loyalty program be gimmick, just to get customers to sign up. You can have a million card carrying members in your program, but don’t be fooled into thinking you have a million loyal customers. Unless you engage with these customers, follow through with them and make them feel special, you will only retain a percentage of these customers. And it starts with a great product that is combined with a great customer service experience.

Loyalty Marketing Statistics

• 53% of Americans participate in a loyalty program because of ease of use
• U.S. consumers hold 3.8 billion memberships in customer loyalty programs
• Loyalty membership growth continues, but has slowed to 15% compared to the 26% growth rate achieved in 2015
• Loyalty Program enrollment has grown by 31% over the last four years while active engagement rates have remained flat
• Loyalty program member satisfaction remains steady year over year at about 46%
• 39% of U.S. consumers participate in a loyalty program because they give great discounts
• 37% of U.S. consumers participate in a loyalty program because they are easy to understand
• 57% of U.S. consumers will abandon a loyalty program if it took too long to earn points or miles
• 26% of North American consumers will stop using a loyalty program if it doesn’t have a smartphone app
• 56% of brands automatically enroll customers into their loyalty program at account signup
• 51% of Americans trust loyalty programs with their personal information
• 70% of shoppers said they belonged to between one and five non-grocery loyalty programs
• 16% of shoppers don’t belong to a loyalty program of any kind
• 24% of shoppers use the rewards they earn
• 43% of shoppers say rewards expire before they can be redeemed
• 38% of shoppers say they never knew if they had rewards available
• Redeemers are twice as satisfied with loyalty programs as non-redeemers
• 71% of shoppers say they would be more likely to use their loyalty cards if they could access these cards and rewards from their mobile phone
• 81% of consumers agree that loyalty programs make them more likely to continue doing business with a brand
• 86% of consumers who like a loyalty program will shop more, and of those, 58% will shop 15% or more with their retailer/brand of choice
• 73% of members are more likely to recommend and say good things about brands with good loyalty programs

The MaCorr Team
www.MaCorr.com

Canadians love their rewards credit cards and loyalty programs and it’s becoming increasingly clear just how much we are, and aren’t, using them. A new study by Bond Brand Loyalty shows the average Canadian participates in 12.2 loyalty programs, up a whopping 25 per cent in just four years. However, many of us are not spending our points. Right now, there are $16 billion worth of points left unredeemed by members in Canada.

“The fact that Canadians have collected and not redeemed such a high level of points suggests Programs could be doing a much more effective job of engaging members and driving redemption behaviour,” said the report.

What’s more, many of us choose what we buy and where we shop because of these loyalty programs. The study found 66 per cent of Canadians change when or where they shop to get more points and 58 per cent said they adjust how much they spend to maximize loyalty benefits.

Still, one quarter of Canadian loyalty program members have not redeemed any of their points, ever, and the report says those members are more likely to walk away dissatisfied with the program. More than four in 10 of us (41 per cent) don’t even know the value of the points we’re sitting on.

The most successful programs are those where you redeem often

Loyalty programs where rewards come frequently, or easily, have the highest levels of satisfaction in Canada. This includes debit and credit cards, as well as in-store rebate cards like coffee cards and gas points cards.

Programs that partner with brands, like Air Miles and Aeroplan, scored the lowest in terms satisfaction, reports CBC.

There may be other factors in why those programs are turning off some members. Last year, Air Miles’ parent company, LoyaltyOne, instituted a rule that unused points for many of its members would be expiring. It later revoked that rule, but Bond Brand Loyalty suggests it hurt satisfaction levels with the program. In a more recent development, Air Canada announced it would be dropping Aeroplan and would be starting its own loyalty program, throwing more uncertainty into the mix for long-time points collectors.

“A breach of trust is the number one anti-driver of loyalty,” Sean Claessen, Bond’s executive vice-president of strategy and innovation, told CBC.

What we want from our cards

Rewards are great, but they’re not the biggest driving factor in whether or not Canadians are satisfied with the loyalty programs they’re using. Members’ experiences using the cards, corresponding apps, and programs outweigh the monetary rewards they receive, according the report. Almost six in 10 (59 per cent) said program experience, brand alignment, digital experiences, and “human touch” were the biggest factors in their satisfaction. The remaining 41 per cent said they cared most about rewards, redemptions, and how much they earn.

In terms of what Canadians would like to see more of, it’s programs that meet their needs, are fun to use, and have the right level of effort needed to get the reward. These were the top three responses, while monetary aspects like “amount accumulated per $1 spent” ranked much lower on the list.

It looks like Canadians’ appetite for loyalty cards is continuing to grow fast. However, if we want to truly reap the rewards from them (we are, after all, exchanging some of our privacy and personal details to be part of these programs), it’s time to stop hoarding them and start cashing in because $16 billion worth of points is a lot of rewards to be banking.

The MaCorr Team
www.MaCorr.com

Best friend. Family. However you describe your pet, chances are you would do almost anything for them. They give you companionship and love, can make you smile with a wag of their tail or the sound of their purr; and best of all, they do it all unconditionally.

Interesting pet statistics showing how pets are a part of the family and why:

• It’s estimated that 70-80 million dogs and 74-96 million cats are owned in the United States. Approximately 37-47% of all households in the United States have a dog, and 30-37% have a cat. More than 50% of Canadian households own a pet, whether it’s a dog, cat, bird etc. That’s more than five million homes!
• Each year on pets Americans spent about $56 billion and Canadians about $3 billion.
• 80% of pet owners, in a recent survey, said they gave their pets holiday or birthday presents; 60% said they signed their pets’ names on cards or letters; and, just over half (51%) named their pets with names like we’d name our children.
• 94% admit they speak to their pets as if they were humans, and one-third say they’ve spoken to their pet on the phone or have left them a message on an answering machine.
• 90% of pet owners believe their pets are aware of their moods and emotions.
• According to the American Veterinary Medical Association, approximately 40% of pet owners learned about their pet through word of mouth.
• The majority of pets are obtained from acquaintances and family members. 28% of dogs are purchased from breeders, and 29% of cats and dogs are adopted from shelters and rescues.
• More than 35% of cats are acquired as strays.
• According to the American Humane Association, the most common reasons why people relinquish or give away their dogs is because their place of residence does not allow pets (29%), not enough time, divorce/death and behavior issues (10% each). The most common reasons for cats are that they were not allowed in the residence (21%) and allergies (11%).

The MaCorr Team
www.MaCorr.com

As medical research marches on, with an Ebola vaccine being tested on humans and the invention of an anti-HIV cream, some research proves to be far less useful. Here are 7 recent studies that didn’t need to be done:

1. Healthier habits lead to weight loss
A study published in 2014 made the not-so-shocking revelation that participants who maintained low-fat diets and continued regular physical activity over a 10-year period were able to maintain weight loss. In the words of the study: “Long-term weight loss maintenance is possible, but it requires persistent adherence to a few key health behaviours.”

2. University rankings influence applicants
A study done by researchers at New York university found that college and university rankings published each year influence where prospective students choose to apply! It reveals that students are actually interested in the quality of life and academic offerings of the schools they wish to attend.

3. Women prefer taller men
The long-held belief that women prefer to date taller men was confirmed this year thanks to a collaborative study from Rice University. More than half of women surveyed said they want to date only men who are taller than themselves, a preference attributed to a “matter of protection and femininity.”

4. Home field advantage lives up to its name
Home field advantage is, as it turns out, an advantage. Thankfully, an article published in February confirmed that a team playing at home enjoys a psychological edge thanks to encouragement from fans. Crowd influence on officials’ decisions and lack of travel or change in time zone also help prove that the advantage is, in fact, appropriately named.

5. Walking or biking is healthier than driving
A study published in August presented the groundbreaking news that walking or biking to work is healthier than driving. Active commuting, the study found, is linked to lower body weight and fat composition. Public transport was also tied to better health than private vehicle transportation.

6. Music can be empowering
Three top international business schools applied their genius this year to discovering that certain songs can have an empowering effect on listeners. Songs with heavy bass made people feel more powerful than songs with more mild bass tones. Of course, sporting event favourite We Will Rock You by Queen was among the most empowering songs.

7. Anonymous online comments more likely uncivil
After comparing thousands of online comments, University of Houston researchers found those posted anonymously were more likely to be vulgar, racist, profane or hateful. In comparison, posts with users’ names attached were more civil and respectful. Yes, the Internet conveniently allows users to hide behind anonymity to avoid responsibility for comments.

It appears not all research budgets are tight these days.