Business Wire

Research: Consumers’ Satisfaction with Loyalty Programs Hinges on Constant Value from their Investments and Interactions

Share

A new international research study conducted by Valuedynamx, a Collinson company and leading global provider of curated, data-driven purchase rewards, highlights ripe opportunities for companies to enhance customer satisfaction and long-term engagement via loyalty programs. The study found that personalized, simplistic, gratifying, and frequent loyalty program reward earning and redemption opportunities strongly align with consumer expectations. These offerings also significantly increase greater satisfaction and more frequent customer interactions since they provide better perceived value for shoppers’ time and money.

“According to our research, forward-thinking brands must obsess over ensuring their loyalty program members derive equal, if not more, value than they invest,” said James Berry, Managing Director at Valuedynamx. “To optimize this value exchange, brands must understand their members on a deeper, more personal level to make them feel appreciated and cherished. This means providing ease of use, helpful recommendations, and most importantly, reward options that resonate and drive feelings of gratification. With satisfaction comes engagement — and an increase in the rate at which consumers earn and spend their rewards. This ongoing ‘earn and burn’ cycle directly correlates with more frequent touchpoints that can drive increased revenue potential and loyalty program success for businesses.”

Valuedynamx’s Power of Satisfaction Research, which surveyed more than 5,500 consumers enrolled in loyalty programs, uncovered the following key takeaways about what drives consumer satisfaction, engagement, and value in modern loyalty programs.

Simplicity and Satisfaction Drive Customer Loyalty and Engagement

There is a direct correlation between customer satisfaction and the rate at which loyalty program members engage in the program by redeeming/spending ("burning") and earning rewards ("earning"). Programs that exhibit a high spend rate often find that it equates to a higher earn rate and more satisfied members, likely thanks to more tailored reward and redemption options. In fact, consumers are willing to accept (and remain satisfied with) slightly lower monetary rewards if they are better personalized to their preferences for airlines, hotels, banks, and retailers.

With consumers juggling more apps, platforms, and digital services than ever, it should come as no surprise that the number one characteristic of a desirable and satisfying loyalty program is a simple redemption process. This simplicity extends to ease of use and cost-saving, with redemption options with the brand, savings, and easy-to-track balance and reward eligibility being the next most desirable program traits.

In general, the study found bountiful opportunities for brands to make customers feel their spending is worthwhile — leading to enhanced customer satisfaction in key areas such as redemption value, cost savings, and product offerings. Consumers surveyed often highlighted disappointment and dissatisfaction in reward value/discount savings, disproportionate savings relative to their spend, and dissatisfaction with limited selections of a brand’s product range.

Consumers Want Choices but Lack Options

There is a substantial opportunity for brands to enhance loyalty programs and satisfy their customers by expanding reward redemption options. This is evidenced by the fact that about two-thirds of loyalty program members are less than completely satisfied with the redemption options available to them. That same number of respondents actively seek to earn loyalty currency when rewards align with their individual preferences (such as the option to redeem for experiences and rewards from a variety of their favorite brands).

While the most popular types of loyalty currency are cashback and gift cards, the vast majority (90%) of program members want the flexibility to redeem loyalty points with multiple brands. Despite this overwhelming demand, many loyalty programs still limit redemption options to their own brand while fewer programs offer rewards and discounts across multiple brands. Further, nearly half of loyalty program members desire experiential reward options, but only 25% currently have access to them.

Brands looking to increase their “earn and burn” rate can turn to program characteristics most associated with complete satisfaction, such as the ability to redeem for memorable experiences, options to redeem with other brands, brand options that resonate with their interests, personalized reward options, and reward recommendations based on past purchases.

There is Strong Consumer Demand for Value and Personalized Rewards

Redemption events are not self-sufficient in driving future earning. Instead, the study found that loyalty program satisfaction is derived from a positive redemption event that creates joy when consumers feel the time and effort they have invested in a loyalty program has been sufficiently rewarded (called “redemption joy”). This joy can be nurtured when programs go above and beyond to create it — particularly through personalized rewards.

Approximately 30% of respondents expressed a preference for rewards based on their past purchases and when asked to rank which loyalty program traits increased their redemption satisfaction, helpful recommendations for reward redemptions ranked highest, closely followed by the ability to redeem high-value rewards and being offered unique and interesting reward options.

Customers want rewards that reflect their individual tastes and past interactions with brands, and introducing artificial intelligence (AI) to find the rewards that best resonate with customers’ interests will drive redemption joy. The research even found that about two-thirds of respondents that see clear value in engaging with loyalty programs would be willing to share personalized data to better inform personalization strategy. This data sharing is becoming a cornerstone of modern loyalty programs and provides brands with a deeper understanding of customer preferences and behaviors to create rewards and experiences that resonate on an individual level.

Consumers Use Loyalty Rewards at High Frequency for Different Purposes

As economic challenges persist, consumers are “earning and burning” rewards frequently; 83% of respondents reported redeeming loyalty currency at least once in the last three months and half reported redeeming in the last month. Supermarket, credit card, airline, and hotel loyalty programs rank among the top-preferred options, likely due to their versatility and ability to offset everyday spending. Supermarket programs boast some of the most active loyalty program members as 82% of respondents reported redeeming rewards on groceries, while airline and hotel programs appeal to loyalty members looking to earn and burn more often to save on high-value rewards such as free flights or luxury hotel stays.

From a regional perspective, supermarket loyalty programs are particularly popular in Europe and Australia, reflecting the routine nature of grocery shopping in these regions. In contrast, credit cards are used more frequently in the United States (43%) and Brazil (39%), where consumers might be leveraging their cards for a variety of purchases to accumulate cashback. Meanwhile, airline loyalty programs are most popular in China (40%) and Hong Kong (37%), where the focus is often on saving points for significant travel-related rewards.

“These research findings present a significant opportunity for loyalty programs to re-evaluate and enhance their offerings, particularly by integrating personalized and experiential rewards that resonate with consumer preferences,” added Berry. “It’s not enough just to drive reward redemption, as unsatisfying or uninspired rewards do not actively drive richer, more frequent engagements. Instead, complementary and personalized ‘earn and burn’ behavior is more likely to create ongoing loyalty program satisfaction. By seizing the opportunities identified by this research, loyalty programs can better meet the needs of their members and drive greater long-term customer engagement.”

About the Valuedynamx Power of Satisfaction Research 2024

A global study of 5,500+ respondents belonging to a loyalty program with 1+ airline, bank, credit card, or hotel. Survey respondents were surveyed in January 2024 via PureSpectrum. To download the final report, click here.

About Valuedynamx

Valuedynamx is a leading global provider of curated, data-driven omnichannel purchase rewards. Part of Collinson, a group acknowledged for delivering the world's most valued travel ecosystem, Valuedynamx combines its expertise across payments, card-linking, affiliate marketing, earning, and redemption into a single entity that delivers relevant and engaging solutions for its clients. Valuedynamx enhances customer loyalty and drives transactional engagement for some of the world’s largest airlines, banks, financial institutions, and hotel groups. Valuedynamx supports over 400 million consumers, maintains 50,000 retail and travel partners, and provides more than 400,000 rewards in more than 180 countries.

Collinson has more than 30 years’ loyalty and customer engagement experience, and more than 10 years focused on delivering loyalty commerce solutions. The organization has been at the forefront of loyalty innovation, continually evolving and building capability to meet the changing needs of clients and their customers.

For more information visit www.valuedynamx.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240710842395/en/

Contacts

MEDIA CONTACT:
Tara Strazdas
The Fletcher Group
732.275.7732
Tara@fletchergroupllc.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

www.businesswire.com

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Suzano Agrees US$110 Million Purchase of Two US Industrial Facilities from Pactiv Evergreen13.7.2024 01:29:00 EEST | Press release

Suzano, the world's largest pulp producer, has announced the acquisition of industrial assets from Pactiv Evergreen in the United States. This will expand the company’s operations in North America and marks its entrance into the consumer and food service packaging segments in the region. The transaction is valued at US$110 million and includes two mills in Pine Bluff, Arkansas, and Waynesville, North Carolina, that manufacture liquid packaging board and cupstock. Subject to final regulatory approval expected later this year, these assets will add approximately 420,000 metric tonnes annually of integrated paperboard to Suzano’s production capacity. Alongside the acquisition, Suzano has signed a long-term supply deal with Pactiv Evergreen to provide liquid packaging board for its converting business. Suzano is currently the largest supplier of hardwood market pulp in North America, with US offices in Fort Lauderdale, Florida, and a research and innovation campus close to Vancouver, Canad

Oakio Set to Participate in Batimat Paris 2024 with Innovative WPC Solutions12.7.2024 16:47:00 EEST | Press release

Oakio, a pioneer in eco-friendly and high-performance wood-plastic composite (WPC) products, will be participating in the Batimat Paris 2024 exhibition. The event will be held from September 30 to October 3 at Paris Expo Porte de Versailles, offering a premier platform for showcasing the latest advancements in the construction and building materials industry. Batimat is a globally recognized event that brings together industry leaders, innovators, and professionals to explore the newest trends and technologies in construction. Oakio will be exhibiting at Booth H1-A066, where attendees can discover the full range of Oakio’s innovative products. "We are delighted to be part of Batimat 2024 and to present our comprehensive range of sustainable building solutions," said Juno Zhong, Marketing Director at Oakio. "Our products are designed to meet the growing demand for environmentally responsible and high-performance materials in both residential and commercial projects." The products showca

Nord Anglia Education and Boston College to Demonstrate the Power of Metacognition at the European Conference on Education12.7.2024 16:16:00 EEST | Press release

Dr Kate Erricker, Group Head of Education Research and Global Partnerships at Nord Anglia Education, and Dr Damian Bebell, Assistant Professor at the Lynch School of Education and Human Development, Boston College, will lead a workshop on metacognition at the European Conference on Education (ECE) on Saturday 13 July 2024. Titled “Exploring the Implementation and Outcomes of a Global Metacognition Project”, the workshop will explore how metacognition can improve learning in classrooms and showcase Nord Anglia Education’s pioneering metacognition research project involving 27 schools in 17 countries. Metacognition is being aware of and controlling one’s own learning processes. Studies have shown that metacognition can greatly enhance student learning. “Metacognition bridges the gap between knowledge and understanding,” says Dr Kate Erricker. “By teaching students to be aware of how they think and learn, we’re not just enhancing their academic performance but also preparing them for futu

BLS International Holding Anonim Şirketi (Turkey) Successfully Completes Acquisition of 100% Stake in iDATA12.7.2024 15:32:00 EEST | Press release

BLS International Services Limited, a leading global tech-enabled service partner for governments and citizens, announced the successful completion of the acquisition of 100% stake in iDATA and its wholly owned subsidiaries, through BLS International FZE (WoS of BLS) and BLS International Holding Anonim Şirketi (WoS of BLS International FZE). Turkey-based iDATA, a leading visa service provider with 37+ VACs in 15+ countries, serves Germany, Italy, and the Czech Republic. BLS acquired iDATA for ~Euro 80 Million. In 2023, iDATA reported revenues of ~Euro 27.3 Million and EBITDA of ~Euro 16 Million. This acquisition would further strengthen the overall BLS’ position as one of the leading international player in Visa and Consular services. iDATA’s existing agreements and offices will be aligned into the BLS’s network in 66 countries across the globe, enabling BLS to service more Client Governments in Europe. The transaction will be EPS (Earning per share) accretive to BLS immediately. Mr.

Oticon Medical’s Sentio™ System Receives Regulatory Clearance in the US12.7.2024 15:16:00 EEST | Press release

Oticon Medical announced today the U.S. Food and Drug Administration (FDA) clearance of its first active transcutaneous bone conduction hearing system, the Sentio System. Sentio System delivers the proven benefits of the Ponto™ System – and more – in a transcutaneous option. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20240712765107/en/ The Sentio System includes an external Sentio 1 Mini sound processor and a Sentio Ti Implant placed under the skin. (Photo: Business Wire) The system includes Sentio 1 Mini, an external sound processor, and Sentio Ti Implant, placed under the skin. It is the smallest transcutaneous system available to date1. While Ponto and other percutaneous bone-anchored hearing systems use skin-protruding abutments, the Sentio System provides an alternative keeping the skin intact. The Sentio System offers an additional solution for patients and supports our commitment to "freedom of choice." “With the la

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom
HiddenA line styled icon from Orion Icon Library.Eye