Marketing News: Why loyalty programme members love promotions

Marketing News

Why loyalty programme members love promotions
Brands have been urged to ensure customers signed up to loyalty schemes get worthwhile rewards as new research reveals that customers have a strong affinity for promotions.

What people think, feel and care about loyalty programmes has never been more important as more than three quarters of the nation are currently members.

A new report by YouGov reveals the significant value in such promotions with 70% of consumers thinking that all brands should now offer them.

They are a great way to reward existing customers for their repeat business as well as attracting new customers away from the competition.

One of the biggest revelations in the findings of the research is the importance that customers place on what they get from a loyalty scheme, rather than how they get it, as more than two thirds (69%) of British shoppers think that the benefits and rewards are important when choosing to become or stay a member of a loyalty programme.

According to the study commissioned by Mando-Connect, almost half of those surveyed think that a good and easy membership experience, including sign up and account management is important while rewards themselves are 1.5 times more important than experience. Some of those surveyed said that they valued reward schemes that support good causes or those that help the environment.

The UK is one of the most sophisticated promotion markets with many brands using a winning formula based on what their customers love. Sainsbury’s Nectar points, VeryME Rewards, Shell’s Go+ Spin to Win and Amazon Prime’s Prime Day are just some of the brands that run successful loyalty programmes.

What do people value? Whether there’s a chance to win something via a prize draw or collecting points and ‘guaranteed gets’ like added-value freebies, the opportunities for marketing are endless. Where in the past loyalty schemes have been complex mechanisms to unlocking different levels of incentive, now we see simple sign-up processes using only an email address or social media handles to be part of an exclusive club for the best deals.

And brands are willing to reward the right type of behaviour over spend.

For example, recently Virgin Atlantic offered all British Airways’ Silver and Gold frequent flyer members the same membership benefits without them having to accrue any airmiles to qualify. Customers simply had to prove their BA membership status with Virgin Atlantic by email to be automatically awarded their status with the competing airline. It means frequent flyers get more miles, free checked luggage, free seat reservations and access to its club lounges for 18 months instead of the 12.

Loyalty programmes should be a continuous investment by a brand in a longer relationship with its customers. The increased affinity makes sense because what is a loyalty programme if not a long-term promotion?

Further Reading:
What the Brits want from Promotions, Mando Connect
New Research From the UK: The Significant Value of Promotions to Loyalty Programmes, the wise marketer