Loyalty Landscape: March 2015
Loyalty at a Crossroads
Everyone seems to want an invitation to the loyalty party, but more than half of them stand in the corner and refuse to mingle once they get there.
Loyalty-marketing programs have never been more popular in terms of sheer numbers – memberships jumped by 26% to a whopping 3.3 billion. But that does not translate to equally high active rates. In fact, 58% of those memberships are inactive, with no participation in a 12-month period.
Those are just a couple of the revelations in the 2015 COLLOQUY Loyalty Census, a comprehensive and in-depth evaluation of the loyalty landscape in the United States and Canada during the research period of 2012-2014. The report provides analysis – both broad and deep – into the reward programs of corporations and other organizations, how consumers are using them (or not) and ways in which marketers can use the insights gleaned from the data to make those programs more effective.
The Loyalty Census also delves into the data by industry, providing insight into the core loyalty sectors – retail, financial services, travel/ hospitality – uncovering revealing details such as the explosion in the number of prepaid cards and store credit cards and what that means for financial services loyalty operators.
For the first time since COLLOQUY began its in-depth benchmarking of the loyalty industry in 2000, we’ve created a sector called “emerging platforms” to capture a number of categories that don’t fall into the three primary sectors. Emerging platforms includes everything from large e-commerce programs (Amazon Prime) to daily deals (Groupon) to online travel agencies (Orbitz) and others, and the sector already accounts for 13% of all loyalty programs.
One thing is clear: Loyalty programs in and of themselves do not create loyalty. The wild growth of memberships contrasted with the continuing creeping loss of active rates makes this a time of great challenges in loyalty marketing – but also great opportunities. The 2015 COLLOQUY Loyalty Census helps loyalty operators use that data to refine and revamp their programs to be more personal, useful and relevant.