In our recent research ‘for love or money 2015‘, we asked members of programs why they believe brands have a loyalty program and then what they believe the most important reason is. We then ranked these.
The top 3 reasons are:
1. To keep you (the member) buying from them (the brand) rather than from competitors (competitive advantage)
2. To encourage you to spend more with them (increase basket size)
3. To encourage you to buy from them more often (increase frequency)
In 4th place was the DATA reason…”to collect your data so that they can improve their own business”, which sadly is ahead of “To recognise you as a an important customer”.
Whilst I am not discounting the importance of insightful and relevant data which if used smartly can be useful to members (the old nugget of ‘right offer, right time, right person’) however, it would be better if it was a bit further down the ranks.
So here’s the challenge:
Brands who have a program or are planning one – please aim for your members to believe you are recognising them as important, ahead of the importance of their data.