••• loyalty research
Reengage them: How to fix those broken loyalty programs
Markdowns and cash rebates – a strategy of many brands and retailers – may actually have a negative effect on brand loyalty, according to Cincinnati marketing firm Colloquy. Loyalty programs have fallen into a copycat trap, with promotions looking increasingly alike to consumers. When asked if it pays to be loyal to a favorite brand, only 12 percent of U.S. consumers strongly agreed and only 17 percent said loyalty programs are a very influential factor in determining a purchase.
While consumer participation in loyalty programs is up, the type of engagement that forges long-term brand commitment is down. Colloquy has three tips to improve the effectiveness of loyalty programs.
Give ’em what they want. Just 31 percent of U.S. consumers find reward program communications extremely relevant. Explore what high-value customers buy and what drives their redemption. Put customers fully in control. Opt-ins and opt-outs must be easy and offered by category and channel.
Build a VIP mentality. Foster a sense of insider status for customers. Invite customers to design how rewards are tailored to their needs. Consumer-to-consumer dialogue and company-to-consumer-to-consumer trialogue both present new opportunities.
Keep it simple. Transform from being product- or channel-focused to being customer-centric. Ease of engagement is key. Approximately 64 percent of U.S. consumers said the main reason they joined a loyalty program was because the program made it easy to redeem rewards.
••• consumer research
No sex please, we’re broke
More than one-third of consumers are struggling to pay their monthly bills sometimes, often or always and most would go to extreme lengths to find relief from their dire straits, according to data from Dallas research company Toluna on behalf of BillFloat Inc.
How extreme? One-quarter of respondents would turn off their TV for an entire month to have someone else pay their bills, while one-fifth of women would abstain from sex for six months. (Sorry, guys!) Twenty-one percent would be willing to give up digital devices and cell phones for a month but only 14 percent would go without the Internet. Nine percent of respondents would gain 15 lbs. of weight, although only 5 percent of women would be willing to gain weight.
Additionally, 35 percent of respondents claimed that they get creative when they need money to pay bills, generating money through yard sales, pawn shops and taking on extra work. Twenty-two percent of consumers turn to friends and family for loans. The majority (86 percent) of consumers would go to great lengths to avoid missing a payment and incurring a late fee.
After taking into account the vital monthly bills of housing, food and utilities, consumers ranked insurance as the most important bill to pay first, followed by credit cards, loans, cell phone and lastly cable/satellite.