ITA Group releases new research on transforming customer loyalty programs

West Des Moines, Iowa – ITA Group released findings from its latest research report, “Transforming customer loyalty programs,” an in-depth survey of 5,000+ customers of 50 top brands across a range of industries.

Brands are constantly challenged with reaching the right customers at the right time to get them to visit more, spend more and give more wallet share. Our latest research helps brands overcome the ever-evolving customer loyalty landscape and stay ahead of the competition.

ITA Group’s study used Net Promoter Score to measure customers’ expectations and experiences with common loyalty programs. We asked customers to identify as a promoter or a detractor, then analyzed the components within each brand and industry that contributed to their feelings. 

“Our study demonstrated the source of customers’ satisfaction and dissatisfaction with loyalty programs across industries and for specific brands,” said Chris Jones, Senior Vice President – Customer Loyalty & Engagement Solutions. “We’re excited that we can arm clients with this insight and help them act on these opportunities to enhance their program and grow their brand.

New loyalty research identifies the secret to building customer relationships

While many popular brands have loyalty programs, the study indicated that a typical loyalty program only resonates with ~40% of the audience. Brands are missing key opportunities to build strong relationships with customers. The secret to improving? Across all industries, survey respondents said the two things they want most from a loyalty program are value and ease.

The research tells brands that if they want a high perceived mix of benefits in their loyalty programs, they should focus on delivering high perceived value (what do customers get?) at a lower perceived effort (how hard do they have to work?). The report goes deeper into the formula for a successful loyalty program to build customer advocacy and long-lasting relationships.

Personalized customer experiences result in increased customer retention

“Brands that deliver unique, personalized value create a situation where the reward can live on in the hearts and minds of their customers,” said Sarah VanDerHart, Insights & Strategy Leader – Customer Loyalty & Engagement Solutions. “They get extra equity from their program in the form of an emotional tie to the reward and the brand.”

Because customers are drawn to a wide range of loyalty program benefits, understanding the dynamic between value and effort helps brands decide where to allocate money and drive the best outcomes.

The results of the study found that:

• 5 key motivators of value and effort are critical in turning customers into brand advocates—easy mechanics, valuable rewards, exclusivity, flexibility in rewards and meaningful personalization
• How a customer perceives the mix of benefits will determine if that customer becomes an advocate of the loyalty program
• Brands that provide program value and ease will see 6x more visits, 6x more spend and 6x more wallet share from its brand advocates
  

“Every customer has a different equation of what they value and how hard they’re willing to work for it,” said Matt DeVries, Sr. Manager & Strategy Advisor – Customer Loyalty & Engagement Solutions. “We’re using our latest research to help brands capture enough data to personalize their loyalty programs and attract more customers with what really matters to them.”

A flexible customer engagement strategy motivates a larger audience

In almost every industry, difficulty participating and ambivalence toward rewards are the two biggest issues customers have when they’re not engaged in a loyalty program. Customers in the survey indicated there are typically three top features missing from programs: surprise and delight, increased valuable earning opportunities and exclusive offers.

To move beyond these barriers, brands need a flexible program that lets them target more customers with the right kinds of offers, promotions and rewards.

“A full-service, end-to-end customer loyalty partner like ITA Group is best equipped to deliver the right rewards to the right customers at the right time,” said Shawn Gannon, Senior Strategist – Customer Loyalty & Engagement Solutions. “With a flexible, end-to-end loyalty program, customers are better and more personally served.”

Download a copy of the report to gain more insight into what customers really want from loyalty programs.