Research Shows Loyalty Members Want More Redemption Opportunities
According to recent research, loyalty program members surveyed want more accessible redemption opportunities and prefer to redeem their points at least once a year. Furthermore, they want to redeem well before they hit the $100 mark in reward earnings and prefer a reward card over other reward options. These are among the findings of research commissioned by global financial technology company Blackhawk Network.
The findings were based on a survey of more than 1,500 American adults on their preferences and attitudes toward loyalty programs across a range of categories, including retail, airline, hotel, food & beverage, online retail, bank, gym, telecom and utility.
Loyalty members in food & beverage, online retail, gym and retail programs reported the highest engagement, with roughly nine out of 10 surveyed loyalty members in each category reporting that they redeemed their loyalty points at least once a year. Additionally, a majority of surveyed loyalty members in those categories consider themselves frequent redeemers, cashing in their loyalty points four or more times throughout the year.
"Effective loyalty programs keep participants engaged and continuously coming back for more. Our research found that participants in programs with the highest engagement are redeeming their loyalty points at least once a year, and in some categories, the majority of consumers are redeeming at least four times a year," said Theresa McEndree, vice president of marketing, Blackhawk Network. "Combined with the fact that most consumers want to redeem their rewards well before the $100 mark, our findings suggest that retailers and organizations can increase consumer engagement with their loyalty program by simply offering the right rewards at the right values."