Want to get loyalty working hard for your business? You’ve got to understand what motivates loyalty program members, and implement the program that satisfies the yearn to earn. Our recent research found out what drives them — and reveals what retailers can do to lure customers and increase basket size. Discover:
1) What’s at the heart of many purchases
2) What consumers are really looking for
3) How you can tap into the true power of loyalty
Shopping with purpose
We learned a lot about what motivates shoppers when we surveyed a panel of more than 1,500 members of multiple loyalty programs (The Points of View & Vision Critical Panel, surveyed February 12-19, 2014.). As part of that survey, we asked whether they set goals — in other words, were they collecting points/miles with the intention of redeeming for something specific.
Our survey revealed that the overwhelming majority of respondents — 81% — have redemption goals in some, most, or all of their loyalty programs. And nearly half (45%) say they have a goal in all or most of their programs.
Why do you need to know this? Having a loyalty program redemption goal makes a consumer more likely to work towards accumulating points or miles — in other words, shop! — in order to achieve the reward. Some studies have even shown that consumers increase their purchase rate as they get closer to their reward (Praveen K. Kopalle, Scott A. Neslin et al., The Joint Sales Impact of Frequency Reward and Customer Tier Components of Loyalty Programs, September 2011, p. 32).
What shoppers really want
It gets really interesting when you dig deeper to find out what types of goals loyalty program members are most likely to have.
Our survey revealed that shoppers are most likely to set their sights on an award flight. In fact, an overwhelming 68% said they have a target in an airline frequent flier program. Coming in a close second were retail loyalty program goals, with 48% setting goals in these programs.
If your business happens to be in the retail sector, you might be tempted to overlook that 68% as irrelevant to you. Don’t!
A highly motivating reward goal of free travel could lead a person to shop more frequently and spend more at checkout in a retail store — provided that store meets one very crucial criterion. The points/miles offered must be in a program that is helping the shopper attain that free flight or other redemption goal.
Help your customers fly
Using a program like Points Business Solutions, which lets shoppers earn their favorite loyalty currencies, will get the attention of loyalty program members. It can motivate them to buy from you and it can motivate them to spend more.
Nearly three-quarters (71%) of the shoppers we polled said they preferred to shop at places that offer points/miles in one of their programs.
Well over half of our survey respondents (56%) said they never miss a chance to earn points and miles in their favorite loyalty programs.
Even more impressive is the potential for this to drive repeat behavior — 79% of loyalty program members we surveyed agreed or strongly agreed that “a store offering points/miles in a program I already collect in would make me more likely to return.”
As you’ll recall, by far the most popular goal among loyalty program members is an award flight in a frequent flyer program. Clearly, there is an enormous advantage to participating in a loyalty program that offers consumers points/miles that count towards an award flight.
Choosing a program like Points Business Solutions lets you attract highly motivated shoppers by giving them the currency they want, without the redemption hassles for you that come with a store-specific program.
It doesn’t take much
You don’t have to give away large amounts of points/miles to attract customers. Provided you are offering points/miles in their favorite programs, shoppers are happy with small amounts. (See “How many points/miles should you award.”)
Moreover, the potential to attract and retain customers is huge. When the results of our survey are extrapolated to the general population, as many as 100 million Americans could share a keen dedication to collecting small rewards of points/miles.
Learn more about how Points Business Solutions can help you attract the lucrative market of avid points collectors.