Loyalty Program Benchmarks

Here are some useful criteria for designing a loyalty program:

- blend economic and emotional touchpoints

- provide a wide variety of reward options

- offer relevant, customized and dynamic communications

- give key customer groups a sense that they can be involved in their experience

- act as a distraction or an opportunity

In terms of staying in touch with customer expectations:

"As people get used to getting what they want, when they want it, loyalty programs need to offer more than a toaster for the right customer behavior"
                                                                                    - Mark Sage, Director of Loyalty, Carlson

Statistics:

40% of individuals age 18-26 (Generation Next) use multiple websites for the same task (Facebook, MySpace and Friendster profiles)

Loyalty is driven by "trust" and economincs.  When relationship strength is high, an individual is 49% more likely to remain a customer and is 1.82 times more likely to recommend a retailer to friends and family.
            - June 2007 study "Getting it Right at Retail" by Carlson Marketing

Consumer preference for what online shoppers want:

                            Top Box

Discounts           53%

Coupons              35%

Redeem rewards  34%

Source: SmartSampling: 1:1 Magazine (2007)

Marketing

Source 1:1 Magazine, September 2007, John Gaffney; "Is Loyalty at Risk"