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Loyalty Program Rewards go Deeper than Dollars

 Loyalty Program Rewards go Deeper than Dollars

Loyalty Program Rewards go Further than Dollars 

When it comes to loyalty programs, the one size fits all approach doesn’t work. A loyalty program’s structure, reward offering, and communications need to be relevant to your customers to be effective. For example, the type of benefits that are important to Millennial may not be as important to Baby Boomers. Nielsen recently completed a study to identify the incentives that drive loyalty program participation. {Nielsen polled more than 30,000 online consumers in 63 countries in March 2016.}

Most-Valued Benefits of Customer Loyalty Programs

The study shows 72% of global respondents agree that all other factors held equal, they will buy from a retailer with a loyalty program over one without. The driving force for many loyalty members is financial incentives with two-thirds of global respondents saying that they somewhat or strongly agree that they joined any given loyalty program only to get free products or discounts. When it comes to the most-valued loyalty-program benefits, monetary incentives top the list in every area, by a wide margin.

  • 51% of global respondents say product discounts are among their most valued benefits.  
  • 33% of global respondents say free products are among their most valued benefits.  
  • 45% percent of loyalty program participants say rebates or cash back are among the most valued benefits.  Most-Valued Monetary Loyalty-Program-Benefits

The Value of Different Types of Non-Monetary Loyalty Rewards

Although the numbers clearly show a preference for financial rewards among loyalty members of all ages. It takes more than offering generic deals to create a meaningful differentiation, particularly in terms of building a relationship with millennials.

  • 21% of millennials say frequent flyer points is one of their top regarded loyalty-program benefits.
  • 15% of millennials say that higher-priority service, including benefits such as first-class seating or VIP services, are also among their top regarded loyalty-program benefits.
  • 15% of millennials say that exclusive access to sales or merchandise is also among their top regarded loyalty-program benefits.

 Most-Valued Loyalty-Program Benefits

How do Millennials Compare to Baby Boomers?

This value in non-monetary benefits seen by millennials is more than twice the amount of their counterparts in the Baby Boomer and silent generation. Showing marketers that in order to capture this audience their brand has to offer more than good deals, it must be tailored to millennials lifestyle and interest offering rewards in a timely manner.

How Millennials Value Loyalty Program Benefits

Top Brands that Best Meet Millennial Consumers’ Expectations

The top brands that currently best meet Millennial consumers’ expectations and, have the best engagement and loyalty rates include Apple, Nike, Chipotle, Target, Amazon, Sephora, Levi’s, PayPal, Old Navy, Under Armour, Beats, Google, Chevrolet, Verizon, Victoria’s Secret and Ralph Lauren. These companies are able to achieve higher degrees of loyalty because of their understanding of millennials desire for both monetary and nonmonetary loyalty program benefits. Creating tailored programs that exceed customer expectations.