April 19, 2017
Do your customers earn and burn or save their loyalty rewards for later?
According to a survey by Excentus-Ipsos, there are two types of loyalty rewards customers, and they can be targeted differently for better marketing outcomes.
The survey found:
39% of loyalty program members enjoy saving money any way possible.
23% of members enjoy earning rewards from everyday purchases and favor rewards that are relevant, easy to use and have everyday value.
Of the two types of members, earn-and-burn consumers look for an instant gratification or discount.
16% choose fuel discounts for redemption opportunities.
15% redeem rewards within a month of earning.
27% of save-for-later consumers accumulate rewards on cards until they’re valuable enough to redeem, and they use these awards for gifts or special occasions.
The bottom line, according to the report authors, is to know whether your members are spenders or savers to appropriately tailor loyalty offers, promotions and communications. They suggest the difference in behaviors is key for retailers, brands and merchants in determining their rewards strategies and identifying the best loyalty currencies for their customers.
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