Rewarding customers really does pay off for loyalty marketers.
A new survey from Yahoo Canada suggests loyalty programs help sway purchase decisions and drive traffic to stores.
The “Talking Loyalty” survey of 1,000 Canadians found 56% of respondents make an effort to visit retailers where they have a loyalty/reward card.
Loyalty cards also encourage consumers to spend more with brands: 47% of cardholders said loyalty programs impact their purchase amount. One-third of consumers said they buy more products and services to accumulate points.
“Loyalty matters and it matters a lot in Canada,” said Claude Galipeau, Yahoo Canada country manager.
If a shopper can earn extra points for certain items or for shopping on a particular day, 52% said they would do so. “I think that shows the power of the loyalty card to drive purchase intent,” said Galipeau. “For me, that was quite interesting and surprising.”
The survey, which looked at programs across categories including retail, coalition, entertainment, gas and travel, also shows just how popular loyalty programs are in this country. A staggering 90% of Canadians have a loyalty card, or about 22 million consumers. On average, Canadians have four loyalty cards in their wallet. “You realize how competitive the space is for the share of wallet,” said Galipeau.
What are consumers looking for in a loyalty program? Value is a key factor, with six out of 10 consumers choosing a loyalty card with no annual fees.
When it comes to receiving communication from a brand, 55% of Canadians said it’s important for loyalty programs to send them relevant information. While email is still important, millennials are nearly two times more likely to prefer mobile for loyalty information.
“If you want to have growth amongst millennials you have to have a mobile app strategy and a mobile advertising strategy,” said Galipeau.
