A recent study from ACI Worldwide, a top global provider of payments system, reveals the majority of consumers in the United States today believe their loyalty and customer incentive programs deliver benefits that are not only important to them, but that function to retain their business and keep them from straying to the competition.
The company polled U.S. consumers and found a vast majority said they would choose a retailer over its competitor if they were members of that retailer's loyalty program. In addition, 71 percent of respondents said they feel their loyalty programs deliver important benefits and 84 percent of consumers are already a member of at least one program. Also, men are less likely join as many loyalty programs as women, with only 18 percent being members of more than three programs, compared with 36 percent of women.
"Considering four out of five Americans (84 percent) are members of at least one retail loyalty card program, this adds up to a big opportunity for retailers when executed correctly," said Rob Seward, product line manager at ACI Worldwide. "Although it takes time to build a successful loyalty program, the payoff is significant – we are now seeing proof that loyalty schemes are resonating with consumers and creating customer loyalty."
In addition, women – with 91 percent having at least one loyalty program membership compared with 77 percent of men – control an estimated $20 trillion in annual consumer spending across the world, and that number is expected to grow to $28 trillion over the next two years. When it comes to age groups, of 18- to 24-year-olds, only 5 percent said that very few of their program memberships deliver benefits that matter to them, but this number increases to 27 percent in senior citizen age groups.
"With this in mind, retailers need to look more closely at the benefits they are providing to their customers in this age group," Seward added. "The key to success is placing the customer experience at the center of a retailer's loyalty and rewards strategy. ACI is making it easy for retailers to integrate their loyalty and rewards programs so they can do what the programs were intended – create greater consumer loyalty."
Customer loyalty programs are also relevant in the auto industry as Hyundai Asia Resources, the exclusive distributor of Hyundai cars in the Philippines, recently launched the "One Hyundai Club: Life in Style" program.
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