Two thirds (66 percent) of consumers say that discounts are the reason they participate in the loyalty programs they join, according to a recent Maritz Poll commissioned by Maritz Loyalty Marketing. But, when it comes time to collect their rewards, most consumers choose to redeem their points for gift certificates, according to actual customer behavior patterns tracked in loyalty marketing programs operated by Maritz.
Additionally, the Maritz Poll found that after discounts, consumers say that cash back (54 percent) is the next most popular reason, followed by merchandise (49 percent), gift certificates (34 percent) and travel (29 percent). However, when actually redeeming rewards they have earned, consumers redeem for gift certificates most often, followed by cash back, discounts, merchandise and travel.
“Consumers’ stated preferences and their actual behavior in loyalty/rewards programs do not always match,” said Gail Sneed, director, market development for Maritz Loyalty Marketing. “With complex rewards programs, it is important to understand consumers’ behavior patterns and motivations - otherwise programs could fail to accomplish their intended goals. It’s critical for companies to avoid making assumptions about their target audience’s preferences and desires, and rather employ a strategic approach to truly understand customer behavior. Only then will companies be in a position to develop customized, robust rewards programs that increase customer loyalty and satisfaction.”
Respondents’ reward preferences also vary significantly with income level and age. Younger respondents (73 percent aged 18 to 34) are more likely to favor discounts than are older consumers (54 percent aged 45 to 54). Discounts are also more appealing to consumers with income levels under $60,000 (71 percent).
“Consumer targeting is key when designing a loyalty/reward program,” noted Sneed. “Demographics can impact program design significantly - in terms of what is offered as well as the method and vehicle for communication.”
About Maritz Loyalty Marketing
Maritz Loyalty Marketing is the nation’s leading provider of full-service loyalty marketing solutions, including rewards-based loyalty programs and one-to-one communications programs. A unit of Maritz Inc., Maritz Loyalty Marketing deploys all of the strategic, operational, technology, communications, rewards and fulfillment services that support their client’s customer loyalty programs nationwide. Based in St. Louis, Maritz Inc. provides market and customer research, communications, learning solutions, incentive initiatives, meetings and event management, rewards and recognition, travel management services, and customer loyalty programs. Maritz has a presence in 42 countries, with key offices in the United States, Canada, the United Kingdom, France, Germany, and Spain. For more information, visit www.maritz.com.
About Maritz Poll
Maritz Poll is a national consumer opinion survey conducted periodically by Maritz Research. The survey findings are taken from a larger survey conducted in March 2004 by Maritz Research to gauge attitudes and behaviors related to rewards/loyalty programs for retailers, hotels, airlines, credit cards and restaurants. The data is based on 1,047 interviews with randomly selected adult participants in an online panel. Total group comparisons have a confidence interval of +/- 3%. Results of the poll may be used in print or broadcast media, provided credit is given to the Maritz Poll and/or Maritz Research Inc. For more information on Maritz Poll, visit the Web site at www.maritzpoll.com.
About Maritz Inc.
Maritz Inc., based in St. Louis, is ranked No. 166 on the most recent Forbes list of 500 Largest Private Companies. Maritz provides market and customer research, communications, learning solutions, incentive initiatives, meetings and event management, rewards and recognition, travel management services, and customer loyalty programs. Maritz has a presence in 42 countries, with key offices in the United States, Canada, the United Kingdom, France, Germany, and Spain. For more information, visit the Web site www.maritz.com.
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