Study: Loyalty programs more important than ever

More and more consumers are motivated by loyalty programs than ever before, according to the 2015 Bond Brand Loyalty Report.

Bond Brand Loyalty’s fifth annual study shows consumers overwhelmingly agree that loyalty programs are worth the effort.

“While points and discounts drive behaviors, companies need to engage with consumers at a deeper level if they want to extend program loyalty into genuine brand loyalty,” said Scott Robinson, senior director of Loyalty Consulting & Solutions for Bond Brand Loyalty. “This necessitates thinking beyond a program’s monetary incentives to focus on how it can better serve customers or make their experience with the brand more enjoyable, including fulfilling customer needs.”

Enrollment levels in consumer loyalty programs have reached an all-time high as consumers continue to consider them valuable and credit them with influencing shopping behavior.

According to the report, one-third of consumers agree they would not be loyal to the brand if it were not for a loyalty program, and 70% of consumers modify when and where they shop to maximize points, up 13% over the past two years.

In addition, loyalty programs were found to be a top contributor to brand loyalty, ranking higher than factors such as product and service availability, overall price, and communications from the brand. The survey engaged more than 10,000 consumers to uncover insights on brands and loyalty initiatives used in industries such as retail, consumer packaged goods, financial services, entertainment, and dining.

“Brands with established loyalty programs now must make the shift to the future of loyalty and an experience-­‐ based model that is consistent with the overall brand,” said Bob Macdonald, president and CEO of Bond Brand Loyalty. “It’s more important than ever that companies focus on their best customers, and their data, to design a more personalized and authentic experience, which can help build stronger, more meaningful bonds with customers.”

More key findings are included in the 2015 Loyalty Report, available for download at bondbrandloyalty.com.

Bond Brand Loyalty builds brand loyalty for the world’s most influential and valuable brands.