What’s the point of being in a loyalty program if you don’t get something from it?
Many grocery loyalty programs are simple – by being a member, you get access to digital coupons and advertised sale prices. But these days, shoppers expect a lot more.
The gift-giving platform Snappy recently asked shoppers what they want out of a loyalty program, and compiled the responses in its 2024 Customer Loyalty Study. And it turns out they expect a lot more than just lower prices.
Among the key features the study identified as making a loyalty program attractive, is the ability to earn rewards. “Customers prefer earning points that can be redeemed for discounts, gifts, or exclusive merchandise,” Snappy found. Shoppers also want coupons and discounts that are not available to nonmembers. And they want special perks like personalized offers, dedicated customer service or free shipping.
Almost as important are what loyalty program members say they don’t want. More than two-thirds of survey respondents said they’re turned off by unattractive, low-value, cheap or low-quality rewards that they simply don’t want. Another turnoff is a program that requires too much effort, and has complicated procedures for redeeming rewards.
It’s also important for retailers with loyalty programs to keep their members engaged. Surprise us every once in a while, give us something that reminds us why we like shopping there in the first place. Shoppers say they “appreciate extra acknowledgement during key moments,” such as receiving perks and bonuses on their birthday, during the holiday season or on anniversaries of the day they first joined.
If loyalty members do become disengaged, the best way to earn them back is with “enhanced rewards.” Shoppers say an unexpected or more-valuable-than-usual gift or offer will get their attention.
Maintaining a loyalty program can be a lot of work for a retailer, and rewarding members can get expensive. But Snappy says it’s well worth it. Loyalty programs “can significantly influence consumer behavior,” the study concludes, with nearly three-quarters of shoppers saying loyalty program offerings are a key factor in deciding which retailers and brands to do business with, and nearly as many saying they’re likely to spend more when they’re part of a loyalty program.
It used to be that rewarding you for your loyalty by offering you access to advertised sales was enough. Now, Snappy says retailers and brands need to work harder to earn your business – otherwise, we’re likely to do business with someone else who will.
Image source: Kroger
