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Consumers Give Loyalty Programs Low Marks on Communications

A study of loyalty program communications shows that most loyalty reward program communications are irrelevant to consumers needs.

Far too many of those mailings, emails, and Facebook messages that companies send to loyalty reward program members miss the mark, according to consumer survey research released today by customer loyalty agency Direct Antidote, a LoyaltyOne company. A mere 32% of U.S. consumers rated reward program communications 8 or higher on a 1-to-10 scale for measuring relevancy to their personal needs - with 68% giving a score of 7 or below.

Direct Antidote's study centered on loyalty rewards communications such as annual points balance reports, special earning offers, and program information. Consumers were asked to rank the relevance of the communications they receive from "not at all relevant" to "extremely relevant." Despite marketers’ devotion to customized messaging, Direct Antidote's results across all demographics surveyed showed decidedly average relevance scores, with Seniors reporting the lowest perceived relevance at a 5.7 mean score, and Young Adults and Hispanics tied for the highest at 6.9.  

"The data offers an opportunity for loyalty marketers to step up on several fronts," says Di Cullen, president of Direct Antidote. Cullen cited the following strategies to improve communication relevance:

• Create offers that appeal to the trends and values of the times, such as the green movement or recession-stoked consumer frugality;
• Leverage partnerships with other brands to share data, drive down costs and drive up the value proposition to the consumer;
• Explore alternative sources to find new ways to mine for information that is compelling to customers.

For more information on Direct Antidote, and more details on its recent loyalty program communications study, visit its website at www.directantidote.com.