The majority of Americans participate in five or more customer loyalty programs, according to a new survey from Polaris Marketing Research, Atlanta, Ga.
The survey of more than 1,200 respondents showed that although men and women show similar percentages of participation, women and men show significant differences in the types of loyalty programs. Grocery loyalty programs had the highest amount of participation for both genders, but women were significantly more likely to participate in grocery and retail loyalty programs. Men were more likely to participate in loyalty programs related to services (auto, rental, and hotels), travel, and credit cards, which is related to the traditional buying habits of the genders.
Further women were significantly more likely to use their loyalty cards “all the time” and men were significantly more likely to use their loyalty cards “sometimes.”
“While both men and women equally participate in loyalty programs, women tend to use it more frequently. Women are significantly more likely than men to use loyalty programs “all the time” for grocery and retail shopping. In fact, women were more likely to use all loyalty programs mentioned more than men,” said Jan Carlson, Polaris president.
The number of loyalty programs men and women participate in did not differ by gender, but the types of loyalty programs and usage of the program did.
Debra Semans, Polaris senior vice president, said that the company’s younger researchers thought the survey’s finding were lower than expected because they tend to use 10 to 15 different loyalty programs.
That number becomes quite cumbersome to handle, Semans says, she expects to see more programs that bring together different loyalty programs in a single platform. In addition to making it easier for the consumer to use, such combinations make it harder for loyalty competitors to woo away a customer, according to Semans.
She adds that loyalty programs enable companies to have meaningful communications with customers, which are critical in driving customer interactions.
But Semans cautions that it's also possible that too frequent communications or interactions could turn off your target audience and negatively impact customer satisfaction and loyalty. The negative reaction may be the result of repetitive e-mails that offer nothing new or are just recycled marketing campaigns.
There is no “right” answer for the frequency of communications, Semans adds. It all depends on the product and the customer. So she recommends the following approach to determine the proper frequency of communications:
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If possible, segment your target market into groups. For each group, determine the appropriate frequency and type of communication or interaction.
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Monitor the groups on positive responses (click-throughs, posts, forwards), new subscribers, website visits and sales. Also monitor negative responses, unsubscribed visitors, and overall response rates.
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Turn the dial up or down on your frequency for each group until you arrive at an appropriate balance that has minimal negative impacts while maximizing positive impacts.
Semans cautions that frequent interaction is not necessarily a sign of customer loyalty. As she wrote in a recent Polaris blog: “In a Harvard Business Review study, only 13 percent of consumers claim that frequent interaction has facilitated a relationship with a brand. Shared values is a more impactful formula to generate customer loyalty. The study shows 64 percent of consumers believe that sharing a common overall purpose fosters loyalty. So make sure that you deliver value with every customer contact.”