The latest For Love or MoneyTM research identified insights on the impact of periods of economic uncertainty on customer loyalty and loyalty program.
The research revealed that 42% of loyalty program members indicated they become more actively involved with their loyalty programs during times of economic uncertainty to maximise their rewards and savings.
They are called ‘Loyalty Program Double Clickers’.
These members realise they can gain greater savings and benefits by increasing their engagement in programs they are a member of.
For brands with loyalty programs, being sensitive to the impact of the economic environment on consumer spending behaviours, have an opportunity to boost their members financial benefits (with careful financial planning) to maintain interaction and stimulate purchase behaviour.
While there are many variations on the structure of financial propositions of loyalty programs, providing additional financial savings, member only offers or bonus points to help members earn more rewards or their rewards faster, will be returned in kind through members redeeming back at the brand and potentially spending more or more often.
Redemption = Retention.
The latest For Love or MoneyTM research reveals more insights on the impact of economic uncertainty on customer loyalty and loyalty programs, identifying insights including:
- ‘deal switchers’ – those consumers that tend to switch to the best deal
- ‘brand stickers’ – those consumers that tend to stay loyal to the brand they already loyal to
- ‘loyalty program opportunists’ - those consumers that tend to join a brand’s loyalty program to get immediate savings but may not continue shopping with the brand.
You can access the For Love or MoneyTM 2023 report as a free Executive Summary, or the comprehensive report is available to purchase.
Have a happy loyalty day!
