In our previous articles, we’ve already established that loyalty programs are a staple in most industries like coffee shops, restaurants, and even airlines. But in the recent years, because of the advent of mobile applications, consumers are now moving towards digital applications that will make life more convenient for them. Startups all over the world are now taking the idea of traditional loyalty programs, and translating this into different mobile applications that innovate the idea of customer loyalty, making it more interactive for users everywhere.
A survey was done by technologyadvice.com to learn about consumer preferences towards digital loyalty programs. The surveyed 3,162 loyalty program users across the U.S., here are their main findings:
1. People Want to Save Money
In the survey, they found that the main reason consumers participate in loyalty programs is because they’re able to save more money. This goes in line with a lot of business strategy where people buy discount cards or membership cards that offer a say 5% discount for bulk purchases, or even the 10% book discount card at a bookshop.
2. Consumers Like to Shop at Places With Loyalty Programs
The survey found that people are much more likely to go to businesses that have a loyalty program. This might mean that people like to go to places where they will be rewarded for their loyalty. In a modern world where there are now millions of different products, brands, and businesses to choose from, consumers are now looking for those few businesses worth giving their loyalty to, so they can avoid the hassles of decision making and decision fatigue. In the survey, 82.4 percent of respondents overwhelmingly preferred businesses with loyalty programs in their system compared to those that did not have a loyalty program.
3. Users Want V.I.P. Status
The survey also showed that people have a strong preference towards exclusivity based programs; wherein users have the chance to get “V.I.P.” status by paying a premium price, and be able to avail of special discounts, or perhaps perks because of their status. Humans are intrinsically hierarchical creatures that stems from our prehistoric past, where humans who were able to organize themselves and form tribes survived and were able to have progeny. This is perhaps one of the reasons why users want to have some sort of level/ranking system that can be found in loyalty programs.
To Conclude
So there you have it, the reasons why people want to participate in loyalty programs are exclusivity, the program itself, and most of all, the ability to save more money and spend less! Business owners who want to try out loyalty programs should strongly consider app-based loyalty programs, because of the fact that physical loyalty cards are now becoming obsolete and that the rate technological advancement would mean more features and upgrades in the near future. One that will surely add more reasons as to why consumers want loyalty programs.
