Loyalty doesn't always pay

Abu-Shalback Zid, Linda
May 2004
Marketing Management;May/Jun2004, Vol. 13 Issue 3, p4
According to a survey conducted by Maritz Loyalty Marketing, almost 40 percent of long-time members of retail loyalty programs in the U.S. have never redeemed rewards. Despite the redemption rate, however, consumers seem to stay loyal to the retail rewards program where they signed up. According to the survey, 24 percent of consumers have joined their program one or two years ago, 19 percent of them signed up two to three years ago, and 29 percent have been a member of the program three years or more. About 21 percent of consumers who once joined a program have opted out. Asked what type of rewards they prefer to redeem in return for their loyalty points, 61 percent ranked cash as a top choice, 57 percent wanted free merchandise, and 46 percent liked gift certificates. Also, 38 percent preferred members-only offers or discounts, 13 percent liked special benefits or upgrades, 11 percent wanted free travel, and 10 percent were inclined to free tickets to events. About 61 percent of women redeemed their rewards as compared to 50 percent of men. The survey also reported that 49 percent of participants said retail rewards programs influence where they spend their shopping budgets.


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