Consumers want to know the point of points-based loyalty - NIMA

Consumers want to know the point of points-based loyalty

9 maart 2020
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Customer loyalty schemes that simply allow consumers to accumulate points without offering a clear value exchange are less likely to retain and engage them effectively than those that offer tailored services.

According to the latest insights from the Data & Marketing Association (DMA), a third of customers (34%), especially millennials and younger consumers, demand more bespoke and alternative benefits for their loyalty instead of points.

“For customers to stay loyal, brands are challenged to rethink their reward strategies as consumers expect their loyalty to be recognised across more metrics than just spend alone,” the DMA advised in its research paper, entitled Future Trends: Paid-for Loyalty.

Put simply, consumers need to understand the point of a points-based loyalty scheme and to be reassured that their engagement with brands is worth it.

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