In what is otherwise a solid report on loyalty programs for SMBs, I’m struck by the finding that only 22 percent of consumers name easy enrollment as important. Are we to believe that 78 percent are willing to go through hoops to participate?
Hardly. We know better.
You are likely like me who have abandoned signups several times over, believing that it frankly isn’t worth the trouble or time.
Elsewhere in the data from Merchant Warehouse (http://merchantwarehouse.com/finding-benefits-in-a-small-business-loyalty-program), 69 percent of the respondents stated that a customer rewards or loyalty program influences their decision of which retailer to patronize. Approximately the same percentage stated that such programs were an important aspect of their relationship with the retailer.This follows findings from the Yankee Group that say:
- 46 percent would strongly recommend the company to their family and friends if it had a mobile loyalty program that offered personalized rewards
- 47 percent would chose to shop at a store that offered a mobile loyalty program over another store
More from the Merchant Warehouse survey:
- 84 percent of consumers say they are more likely to visit a website of a retailer with a loyalty club
- A whopping 75 percent of consumers say they would switch brands if promotions were delivered to their smartphones
I find the smartphone statistic interesting. I’ve presented on, blogged about, and written my Mobilized Marketing book with lots of examples of text messaging-based loyalty programs driving results. With text, of course, marketers can reach all mobile users, including the approximately 40 percent who still have feature phones.
As I’ve blogged, a highly-regarded Maritz Loyalty Report says the top choice of consumers is loyalty rewards based on preferences revealed from purchase habits.
In a conversation with a leading brand this week, that is where we’re headed. More personalization. More segmenting. More relevance for the customers. More purchases and loyalty.
This post was written as part of the IBM for Midsize Business program http://Goo.gl/t3fgW, which provides midsize businesses with the tools, expertise and solutions they need to become engines of a smarter planet. I’ve been compensated to contribute to this program, but the opinions expressed in this post are my own and don't necessarily represent IBM's positions, strategies or opinions.