Half of Marketers Expect Customer Loyalty
About half of marketers are keeping the faith in their loyalty programs, according to Target Marketing research. This, despite a widespread belief that customers play the field.
This finding from Target Marketing’s “Marketing Mix Trends 2010-2016” reflects even current trends — with hotel marketers ratcheting up their loyalty programs in order to get direct traffic away from third-party booking sites, which cut into their profits and reduce brand awareness.
It seems Doomsday never came. In 2014, Glenn Llopis predicted on Forbes.com:
“Consumers are no longer brand-loyal. They may be loyal to the engagement experience that a particular brand offers. Once the experiential elements of brand engagement disappear, in many cases, so does the emotional connection consumers have with the brand that was providing them that unique experience.”
In fact, loyalty programs may be underreported — with many brands using punch-card programs, says Target Marketing’s analysis of six years of “Media Usage Survey” data. The 2011 to 2016 analysis in the “Loyalty Programs” section is part of a benchmarking of marketing media channels, technology and tactics included in the Target Marketing/NAPCO Research study. Both Target Marketing and NAPCO Research are NAPCO Media brands.
Loyalty Program Marketing
Below, please find an excerpt from “Marketing Mix Trends 2010-2016.”
Just under one-third of all respondents increased their loyalty program use during 2016, while another quarter maintained their current level. These figures are in-line with marketer behavior during the last five years. The number of respondents who cut back their use of loyalty programs was minimal:
Customers have become accustomed to being rewarded for their faithfulness. But what of the roughly half of respondents who don’t use loyalty programs? Do they truly not, or is this number underreported because respondents don’t realize their punch-card program could be considered a loyalty program? Albeit one ripe for a touch of data analysis, which would serve to transform it from a simple merchandise give-back system to a platform that offers tailored insights and rewards while collecting customer information.
Related story: Hotels Bet Big on Digital/Social ‘Book Direct’ Campaigns