Many consumers are not happy with retail loyalty card programs, including those tied to cobranded credit cards, new research suggests.
In a December online survey of 1,053 adult U.S. consumers inquiring about their loyalty program preferences, ACI Worldwide Inc. found that, of the 75% of respondents that belonged to at least one retail loyalty card program, more than 40% had a negative experience with it.
In particular, many respondents said they felt their program underappreciated them as customers because the reward values were low or not relative to them. Some 62% joined a retail loyalty program so they can get discounts on what they buy the most. But only 36% received a reward or promotion that made them come back to the store.
Only 27% of respondents said they received a reward or promotion that made them feel valued as a customer. And 25% said they received rewards or discounts for items or services they would never buy, suggesting the programs may be out of touch with customers.
“Loyalty card issuers need to look at what the net effect is on consumers and put into perspective what the consumer wants,” Rob Seward, ACI senior industry marketing manager, tells PaymentsSource. “Right now, retail loyalty programs are missing the mark.”
Among the survey participants, 85% of said they had not had communications from a loyalty program since the day they signed up, suggesting card issuers should communicate more with their loyalty customers (see chart). “Issuers should be thinking about that lack of communication,” says Seward. “They need to send out statements on loyalty customers’ points accumulation and provide links to drive people to use their rewards programs.”
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