Tag: corporate rewards

Consumers Want Loyalty (Rewards)

What kind of rewards does your loyalty program offer? Consumers are enrolled in an average of 7.4 loyalty or rewards programs, but according to Maritz, they actively participate in just 4.7% of them. How are you engaging your customers to make your program part of that 4.7%?

Instant rewards, such as digital downloads of music, eBooks, software, etc., are on the rise in consumer popularity and increase redemption by offering low-level rewards. Learn more about how we can help your loyalty program engage customers with our fully customizable digital rewards platform here.

Article below originally from Direct Marketing News.

U.S. consumers have a desire for more loyalty cards in their wallets—even though they use only half of the programs they’re enrolled in now, according to the newly released study: “Maritz Loyalty Report™: U.S. Edition,” which examines brand loyalty across six different industries.More than seven in 10 of the 6,000 surveyed consumers said they had room for additional loyalty programs, even though the currently participate in an average of only 4.7 percent of the 7.4 programs in which they are enrolled, according to Bob Macdonald, president and CEO of Maritz Loyalty Marketing.

Only 35 percent of respondents were active in all of the programs in which they were enrolled, while 47 percent stopped participating in one or more programs in the past year. This high percentage of drop offs illustrates the importance of keeping customers engaged in loyalty programs, says Scott Robinson, Maritz Loyalty Marketing senior director of loyalty consulting. “Sixty-seven percent will modify where and when they buy and half will change brands depending on a loyalty program’s benefits.”

So, it’s essential that marketers recognize what will engage customers in a program and what will cause them to actively leave the program or to passively quit using it, Robinson notes. “Marketers can’t afford to outspend each other,” he says. “They can’t rely on enrollment discounts to maintain engagement. They need to focus on creating an experience.”

For example, loyalty programs should offer special experiences such as free upgrades, preferred seating, and similar benefits designed to meet customers’ desires and go beyond simple discounting, according to Macdonald.

The report’s best programs in this regard, based on customer satisfaction scores, were:

  • Chase Ultimate Rewards, (84 percent) financial services
  • Kroger Rewards (83 percent), grocery
  • Carmike Cinemas Rewards (79 percent), entertainment
  • Kohl’s Rewards (73 percent), retail
  • IHG Priority Club Rewards (67 percent), hospitality
  • Southwest Airlines Rapid Rewards (58 percent), airlines

Beyond an engaging program, other essential elements of a successful loyalty program focus on communications and balancing those communications with the customers’ desire for privacy, Robinson notes. Ninety-four percent of those surveyed said they want to receive communications from loyalty programs, but only 53 percent said that the communications that they receive are relevant. A program’s delivery of relevant communications is closely tied to participant satisfaction, according to Robinson, citing the marketing axiom of the right message needing to be delivered to the right customer at the right time. Using the right channel and the right context are equally important.

Loyalty program participants are open to more frequent communications as long as they’re relevant, Robinson adds, pointing to the study’s findings that only 12 percent of loyalty program participants say they get too many messages. But one member’s communication frequency and channel preferences may be far different from another’s, so marketers need to pay close attention to those differences and recognize that preferences change. Consequently, marketers need to stay abreast of individual customers’ communication preferences.

Similarly, to be effective, loyalty marketers need to determine the amount of personal information that a customer is comfortable with sharing and with the company using. Some customers like the idea of a company using previous purchases to make offers, while other consumers find this “creepy and weird,” Robinson says, adding that Maritz has developed a “cool to creepy” index for loyalty program communications.

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The future of hotel loyalty programs

Airlines, Hotels, and Retailers take notice:  the popularity of loyalty programs is growing; but so is the dissatisfaction over program benefits and rewards when it comes to the high number of points or miles necessary for redemption, and rewards that consumers recognize to be valuable.

Brands must understand this new evolution of loyalty consumer demand, and a new whitepaper from the first club™Loyalty: Looking Forward: The State of the Loyalty Industry and its Digitized, Instant Future” provides insight into the next generation of loyalty programs. “Loyalty: Looking Forward” focuses on the challenges of low motivation at the lower spectrum of loyalty program customers.  What can brands do to prevent flight of customers who maintain low accumulations of points?  The broad answer:  provide incremental rewards that are relevant to the consumer, easily attainable, and instantly available through digital content.

68% of consumers feel that a loyalty program can strengthen their relationship with a brand, and successful rewards programs will cater to this demand for relevant offerings by providing a wide array of instantly-available digital content. “Loyalty: Looking Forward” provides specific industry data for airlines, hotels, and retailers: information that is essential to the loyalty program manager striving to prepare for the digital reward evolution.

A look inside “Loyalty: Looking Forward”:

Digital Content

48% of consumers spend more with a company whose loyalty program offers content that is relevant to them personally.  65% have purchased digital content online.  It is imperative, therefore, that brands implement programs that offer a wide array of content that is available digitally and easily.


The modernization of airline FFPs to include digital rewards will substantially decrease airlines’ exposure to financial liability (by encouraging the incremental redemption of miles), and will resonate with consumers who clearly desire more value from their airline loyalty program.


In today’s online deal-shopping atmosphere, consumers are less responsive to in-hotel premium services.  The days of offering elite “status” or premium service for customer loyalty are eroding.  The new day requires an offer or promise of tangible added value: 47% of consumers are motivated to join programs that provide instant gratification.


Offering direct discounts for loyalty program members gives retailers the ability to immediately impact consumer decisions; these discount incentives, however, are easily duplicated by competitors.  The result: price wars within the segment.  Instead, companies have market expansion opportunities via loyalty programs or promotions that engage consumers.

Loyalty: Looking Forward” provides:

  • A look at what digital content consumers are demanding.
  • Explains how digital rewards provide hotels a cost effective opportunity to match these consumer demands.
  • Explains how cross-promoting across brands through digital rewards will expand a retailer’s market and increase margins.

Featuring latest statistics and defining characteristics of various industry loyalty programs presented by the first club™, “Loyalty: Looking Forward” will help program managers grasp emerging loyalty trends and their digitized, instant future.

Original document from Exebit.

Your Burn and Earn Program Starts Right Here, with the first club™

Welcome to Digital Rewards 3.0, with our new site enhancements that offer more download solutions, more choice to engage customers with our growing catalogue of instant, digital content, and more opportunities to burn points and earn revenues and rewards.

We’ve recently added new features to the first club™ site, to give your customers the very best rewards redemptions that can enhance engagement with your brand, and create more opportunities to maximize promotional incentives for little cost through instant, branded rewards.

Some of enhancements you’ll find when visiting www.thefirstclub.com include:

CURRENCY: Club Coins, our digital currency (or use your brand’s points or miles), are displayed by category and level, making rewards more attainable and redeemable.

CONTENT: more than 40 million titles including music, games, software, mobile apps, eBooks and audio books in 12 languages to date, are available for instant download to any digital or personal device.

DESIGN: easier-to-view and navigate pages offer more content, more categories at a glance.

CUSTOMIZATION: Users can personalize their home page and select only the content they want displayed. Content can be organized or archived.

SEARCH: Improved search capabilities means users can now browse through digital content easily and quickly.

WISH LIST: a brand new function, the wish list lets users save their favourite content for download at a later time.

Our global digital delivery platform integrates directly into any existing rewards or loyalty program, so take a tour of the first club today and see how our instant branded rewards can drive revenues and increase customer satisfaction.

To receive your complimentary Club Coins to redeem from our growing catalogue of instant digital rewards, please contact us at clubhouse@thefirstclub.com or call +44.203.318.3103 (UK) or + 1 (805) 688-0344 (US).

Instant. Rewards. Branded.

Why Choose Instant, Branded Rewards?

At the first club™ we present a better and more effective way to offer rewards and build loyalty with your customers.

We do that by delivering relevant, digital content that is instantly gratifying to today’s consumers.

Our digital solutions can enhance loyalty, promotions, incentives and any type of rewards programs to engage consumers worldwide through attainable low-level rewards.

Our solutions are easily integrated into existing loyalty and reward programs, are cost-efficient and scalable to encourage low level reward redemption, increase customer loyalty and create additional revenues for brands.

If you would like to learn more about our range of digital rewards solutions, and how brands are successfully using the first club™, please contact us at clubhouse@thefirstclub.com.