February 24, 2011, 3:03 PM

Loyalty programs fall flat with some shoppers

A CrossView survey says that only 44% of online consumers use loyalty programs.

Allison Enright

Editor

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Brand loyalty can inspire consumer purchases, but loyalty programs don’t necessarily lead to more buying, suggest survey findings from CrossView, which sells cross-channel marketing software.

The company bases its findings on surveys conducted in January of 177 consumers in New York City’s Times Square. 51% of respondents said they are motivated by brand loyalty when making purchases, but 66% said that loyalty programs do not increase the likelihood of their shopping with particular retailers.

The results also suggest that consumer familiarity with loyalty programs depends on the shopping method. 44% of consumers said they had interacted with loyalty programs online compared with 75% who said they’d done so in bricks-and-mortar stores. “The effectiveness of these programs is inconsistent across channels,” says Jason Goldberg, vice president of strategy and customer experience at CrossView.

A separate survey from electronic payments and rewards program technology provider ACI Worldwide says 49% of loyalty program members never or rarely take advantage of loyalty program perks online. Part of the problem is access: 78% of loyalty program participants say easy access to their membership data would make them more likely to shop at retail web sites that honor their loyalty programs.

 

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