retail news in context, analysis with attitude

Colloquoy and FanXchange are out with a new study saying that "more than half of American loyalty-program members (54%) are unhappy with the reward options offered by their favorite brands and 48% have experienced frustration during the reward redemption process."

In addition, the study says, "93% of U.S. consumers said the type of reward offered is a “very important” or “somewhat important” factor in their decisions to join a loyalty program and to remain engaged with a brand."

Furthermore, according to the study, "Consumers said that in addition to unappealing rewards, the reasons for their frustration with the redemption process were expired points (43%), not enough points to redeem (39%) and the reward item not being available (37%) … Once enrolled, 43% of American consumers have purchased more frequently because of reward offerings or customer-loyalty program membership."
KC's View:
Let's face it. The real reason that loyalty programs don't really work and don't help business transcend old ways of doing business is that they're not really loyalty programs … they're just glorified electronic coupon programs, and consumers for the most part will belong to two of them or twelve of them to pick off discounts where and when they can.

And I'd have to guess, based both on personal experience and a somewhat jaundiced view of how many retailers use such programs, that part of the reason that consumers get frustrated is that retailers build these programs so the house always - or at least mostly - wins.