Loyalty Programs - Canada - July 2019
Covered in this report
This report explores the ‘basic’ factors that drive repeat purchases from a company, consumer attitudes towards brand loyalty, attitudes and perceptions towards loyalty programs, desired features and the impact of Amazon on consumer expectations.
“Naturally, getting consumers to shop regularly at stores means delivering on the basics like good prices, quality, service and experience above all else. Loyalty programs are a secondary consideration, however, they do work to drive the namesake behaviour. Having said that, near universal participation means more clutter and retailers must work harder to ensure programs stand out as consumers generally feel that programs are undifferentiated and soft on providing value. While personalization is an obvious avenue to address this, programs that allow for more flexibility in ways to earn and burn rewards will see the greatest engagement. With consumer expectations changing, thanks in part to Amazon, companies today need to more clearly connect loyalty program offerings to the basic pillars that drive return patronage. Today’s consumers will respond better to brands that build relationships than those that simply focus on retention.”
– Carol Wong-Li, Associate Director - Lifestyles & Leisure
This report examines the following issues:
- Delivering on the basics matters most, consideration of loyalty programs is secondary
- Prioritization of price doesn’t necessarily coincide with brand loyalty
- Perceived value gained from participating in loyalty programs is soft
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